The International Association of Machinists and Aerospace Workers, one of the nation's largest unions, has selected CitiStreet to administer its 401(k) plan, it was announced this week. The company will service employees who participate in the National Pension Plan or other defined benefit plans.
CitiStreet will provide administration, investment management, advice and education services to members of the union, which has more than 700,000 members, according to a statement.
Robert Dawson, who oversees CitiStreet's union business said unions are "one of the last frontiers for 401(k)s." Citistreet sees new opportunities in unions that have started offering participant directed plans, such as the one the company will oversee, in addition to the defined benefit plans unions already provide.
CitiStreet's 401(k) package includes 12 core funds, three of which are lifestyle funds. Core funds include offerings of State Street Global Advisors, Smith Barney Funds from Citigroup Asset Management, the SSgAIAM Shares Mutual Fund and an SsgA brokerage account offering "hundreds of funds and individual securities," the statement said.