Fidelity Launches Video Series on Pensions to Increase Awareness

New Guidance Will Help Participants Engage With Their Pensions As Part Of Broader Retirement Planning

BOSTON--(BUSINESS WIRE)-- Fidelity Investments^® today announced the launch of an online video series designed to provide pension plan participants with a better understanding of their benefits so they can incorporate their pensions into their overall retirement planning.

The library is accessible to all workplace pension plan participants who log on to Fidelity’s participant website NetBenefits^® undera newly created section called “Pension Tools & Learning.” The section features up to eight new videos that answer key questions for participants including: what is a pension plan versus a 401(k) plan, how do pension benefits grow and when can a participant initiate payments?

In addition, the Pension Tools & Learning section -- which is being offered to corporate pension plans nationwide in which Fidelity provides record keeping services -- includes summary plan descriptions so participants can understand their individual pension plan rules. The site also includes links to various Fidelity retirement planning tools.

The Pension Tools & Learning section is the latest in a series of upgrades Fidelity has incorporated into the education it delivers to help participants make more informed retirement decisions. Recently, Fidelity deployed newly trained phone representatives to assist workplace participants with retirement planning decisions and address their broader retirement needs. Last year, the company produced another educational video which outlines the tax implications and advantages of the various pension payment options (annuity payments, lump sum payments or a combination of both). That video is also available on NetBenefits in a section titled “Collect Your Pension.”

“Fidelity has made significant investments in its platform to provide the guidance participants need to understand and appreciate their valuable benefits and incorporate them into their overall retirement planning,” said Wendy Foster, senior vice president in Fidelity’s defined benefit business.

The new video library was produced after a 2011 Fidelity study¹ found that 71 percent of corporate pension plan participants surveyed did not have detailed knowledge of how their pension plans work and 61 percent have never inquired about how much money they will receive upon retirement.

“Our research found that many of today’s workers need a fundamental education about their pensions before they can maximize this valuable benefit,” said Foster. “After instruction on basic but critical concepts like vesting and retirement eligibility, our participants should be better equipped to engage with their pension plans and determine how their pension benefits fit into their retirement income strategy.”

Video Library Offers Broad Pension Education

When participants go to the Pension Tools & Learning section, they are able to view instructional videos on topics such as:

• Pension Participation (Participants do not enroll.)
• Payment Information (There are tools to estimate payments.)
• Beneficiary Elections (Participants can elect for benefits to be paid after their death.)

Fidelity is one of the top three corporate pension service providers in the United States. The firm provides pension plan services to 108 corporate employers with 675 plans, representing 4.3 million participants. Each year, it processes more than 100,000 defined benefit initiations and services more than 1 million retirees.²

About Fidelity Investments

Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $3.4 trillion, including managed assets of $1.5 trillion, as of December 31, 2011. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.

Guidance provided by Fidelity is educational in nature, is not individualized and is not intended to serve as the primary or sole basis for your investment or tax-planning decisions.

Fidelity Brokerage Services LLC, Member NYSE, SIPC 900 Salem Street, Smithfield, RI

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2012 FMR LLC. All rights reserved.

¹ Survey conducted online by Versta Research of Evanston, Ill., from May 4 to May 9, 2011. It included 506 respondents.

² All information in this paragraph is Fidelity data as of Dec. 2011

Fidelity Investments
Corporate Communications, 617-563-5800

Source: Fidelity Investments