Desire for consolidation prompts HanesBrands retirement plan move

Fidelity Investments has taken over the retirement plans of HanesBrands, which sells apparel under the brands Hanes, Champion, Bali, Playtex and Maidenform.

HanesBrands wanted to consolidate several retirement plans into one, which provides 401(k) and employee stock plan services for about 12,000 eligible HanesBrands employees.

The plans hold $700 million. Fidelity is providing core recordkeeping services to the plan, which includes sending out statements to participants, processing payroll contributions and keeping the website and phones open to provide guidance, says Steve Patterson, executive vice president of workplace investing for Fidelity Investments.

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“That’s one of the major things plan sponsors are worried about. They want to make sure the quality and execution is first rate,” he says. “Whether or not we are doing the recordkeeping, we have the ability to pool different sources of money in one place and give you a view of that and interpretation so you have a really good picture of your ability to retire and [achieve] financial health.”

The last piece of the puzzle is guidance.

“It is great to have balances in different places, but you need guidance to take the next best step to ensure you are going to get a great outcome,” Patterson said. “A great outcome would be sufficient money to drive income in retirement throughout the balance of your life.”

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HanesBrands is very diverse geographically and Fidelity offers numerous ways for people across the country to participate in their retirement plan via phone, online chat, Web, digital and seminars that are hosted at investor centers.

“At HanesBrands, we’re all about a comfortable fit and that’s how we feel about our employees’ retirement plans being serviced by Fidelity,” said Annamarie D’Souza, HanesBrands’ vice president of human resources, compensation and benefits. “In Fidelity we found a provider that seeks to deliver superior products and services tailored to our needs in the very same way we focus on meeting the needs of consumers with the quality of our apparel brands.”

Paula Aven Gladych is a freelance writer based in Denver, Colorado.