Fidelity reports doubling of 403(b) business
By Paula Aven Gladych
Fidelity Investment’s 403(b) defined contribution business has doubled since 2008, fueled by retirement plan consolidations in higher education and changes in the health care industry.
Fidelity serves more than 4 million plan participants in the tax-exempt space — 1 million of those added since 2008 — in more than 2,000 workplace savings plans serving the not-for-profit market.
The company’s assets under administration have reached $204 billion, a 102 percent increase from 2008. It also has seen a 30 percent jump in the number of participants it serves in the higher education and health care marketplaces.
Two trends continue to influence retirement plan design in the higher education market: an increasing desire to streamline retirement plan administration, and the need to achieve compliance with recently-implemented IRS regulations requiring 403(b) plan providers to enhance their fiduciary oversight.
In health care, the Patient Protection and Affordable Care Act has accelerated changes, leading many health care employees to re-examine their total benefits costs and develop strategies to comply with the mandates and deadlines.
Fidelity Investments is one of the world’s largest providers of financial services, with $4.2 trillion in assets under administration, including $1.8 trillion in managed assets as of the end of August 2013.
Originally published on BenefitsPro.com