Under terms of the deal, Fidelity will offer administrative service for the Livonia, Michigan-based company’s stock option, 401(k), defined benefit and health & welfare benefit plans. The total outsourcing agreement will cover the auto supplier’s 34,500 U.S. employees and retirees, Fidelity said in a news release.
The various benefit plans will fall under the Fidelity banner at different times. Fidelity began administering TRW Automotive’s stock option plan last month. This encompasses providing full plan administration and participant services, giving employees access to a variety of educational resources as well as the ability to view, model and exercise their company stock options online.
Next on the docket is the company’s 401(k) plan, which Fidelity will begin providing trustee, investment management, recordkeeping and employee communication and education services for in July. The outsourcing deal will provide TRW Automotive’s 11,000 participants online access to their defined contribution accounts for benefit statements, account transactions, retirement modeling, information about their company’s plan and investment options, and an array of retirement planning tools.
Beginning with this fall’s annual enrollment, Fidelity will manage and provide administrative services for TRW Automotive’s health and welfare plans, covering more than 13,000 employees and their dependents. Fidelity will provide online tools and administration resources, such as full-service enrollment, regulatory compliance and life-event processing for all medical, dental and vision programs.
In January 2005, Fidelity picks up the last piece to the deal, administration services for the company’s defined benefit pension plans, covering more than 22,500 active and retired employees. Defined benefit administration services include data management, event processing, benefit calculations, online retirement modeling, retiree check disbursements and post-retirement administration services.