US - CitiStreet has been selected as the 401(K) provider to the near $5bn International Association of Machinists and Aerospace Workers (IAM) National Pension Fund.
CitiStreet, the joint venture between Citigroup and State Street, will provide administration, investment management, advice, communication and education services to the IAM 401(K) plan. The plan will be available to the union's 700,000 plus members from September.
CitiStreet will provide 12 core funds, three of which are lifestyle funds. The core funds include offerings from State Street Global Advisors (SSgA) as well as Smith Barney funds from Citigroup Asset Management. An SSgA brokerage account with hundreds of funds and individual securities will also be offered.
Speaking about CitiStreet's appointment, Don Wharton, IAM general secretary and co-chairman of the pension fund's board of trustees, said: We are pleased to offer this additional savings vehicle through CitiStreet, and we encourage participation. Our members are looking for ways to bolster their retirement savings and this is a fine adjunct to their pension plan.
By Geoffrey Ho
This week's edition of Professional Pensions is out now
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