Illustration by Robert Neubecker/The New York Times.
American Airlines Group Inc. has chosen Fidelity Investments to provide 401(k) services to employees enrolled in the airlines’ retirement plan starting in mid-2015, the Boston-based financial services firm said today.
The five-year agreement includes roughly 120,000 employees and retirees, Fidelity said. The total amount of retirement assets is expected to be around $14 billion — for American and US Airways retirement plan participants combined — at that time, according to Steve Patterson, Fidelity’s executive vice president of sales.
Fidelity has provided retirement services since 1993 to US Airways, which merged with American in December.
Elise Eberwein, American’s executive vice president of people and communications, called Fidelity “a best-in-class administrative partner” and noted the company’s “robust online technology platform” and service centers than can provide individual support.
Fidelity spokesman Chuck Kabat said Fort Worth-based American wanted a 401(k) service provider that could serve its geographically dispersed workforce with many employees who do not work at a traditional desktop computer.
Overall, Fidelity has $4.9 trillion in assets under administration as of Sept. 30, including $1.2 trillion in 401(k) retirement accounts.