According to a Fidelity announcement, the companies have agreed to add GM’s pension, health and welfare benefit programs and vendor management services for several other benefit programs, including disability, unemployment and workers’ compensation in the United States.
Being added to the outsourcing mix are:
- Fidelity will administer GM’s health and welfare plans for 1.2 million active employees, retirees, and their dependents. Fidelity will deliver online tools and administration resources, such as full-service enrollment and life-event processing for medical, dental and vision programs.
- Fidelity will provide administration services for GM’s defined benefit pension plans, covering over 700,000 active and retired participants. Defined benefit administration services include data management, event processing, benefit calculations, retirement modeling, retiree check disbursements and post-retirement administration services.
- Fidelity will have oversight responsibility for the disability and workers’ compensation services provided by Sedgwick Claims Management Services (Sedgwick CMS). Sedgwick CMS has administered GM’s workers’ compensation claims program since 1995.
- Fidelity will have oversight responsibility for other Fidelity vendors that service an extended portfolio of benefits including unemployment compensation, service awards, tuition assistance, flexible spending accounts, and employment and wage verification.
Fidelity has administered GM’s $16.6 billion 401(k) plans for its 266,000 eligible employees and retirees since 1994. The company also provides administration services for GM’s stock option and cash balance pension plans for 51,000 and 3,500 employees, respectively.
Through its Workplace Services offering, Fidelity Investments provides human resources administration and employee benefits solutions to more than 15 million participants in more than 11,500 retirement, pension, health and welfare, payroll and stock plans as of May 31, 2003.