A Fidelity news release said the expanded relationship will include the administration and recordkeeping of AT&T’s defined benefit programs, the second largest private pension plan in the United States. Fidelity, already the provider of the communications company’s 401(k) plans and a portion of its defined benefit programs, will serve all AT&T retirement plan participants.
The five-year agreement will result in Fidelity adding 250,000 new defined benefit participants with a combined total of over 650,000 defined benefit participants as well as the current defined contribution participants that total over 343,000, the news release said. AT&T’s defined contribution plans are, in the aggregate, also the second largest private defined contribution plan in the country, Fidelity said.
AT&T will be migrating to a single retirement provider over the next two to three years. Once final migration has occurred, all participants will then have access to a single view of their retirement information as well as planning tools through Fidelity’s NetBenefits Web site, Fidelity said.
“AT&T’s leadership has determined that a single provider to meet the retirement needs of our employees and retirees is the best strategy for our company,” said Marty Webb, Vice President – Benefits, AT&T, in the announcement.