All Sections

Home | Business

Fidelity offers voluntary buyouts to workers over 55

Union Leader Correspondent

February 28. 2017 8:40PM
About 3,000 Fidelity workers nationwide -- or roughly 7 percent of the company's workforce -- are eligible for voluntary buyouts. (COURTESY)

MERRIMACK — Fidelity Investments, one of the largest employers in the state, is offering voluntary buyouts to employees 55 and older who have been with the company for at least 10 years, a company official said Tuesday.

“We are basically offering associates who are considering the next phase of their life with a generous financial package,” said Vincent Loporchio, senior vice-president.

About 3,000 Fidelity workers nationwide — nearly 7 percent of the company’s workforce of 45,000 — are eligible, Loporchio said. Fidelity employs about 5,700 people in New Hampshire. It operates a large campus in Merrimack and also has an office in Nashua.

“Many employees around the country, not just at Fidelity, are concerned about health-care costs during retirement,” Loporchio said, adding health-care coverage is a key part of the buyout package.

The package includes six months to two years of pay depending on the employee’s service and level, along with other financial benefits such as prorated profit sharing and bonuses, Loporchio said.

“Our strong health allows us this opportunity,” he said of the buyouts, stressing the company is reporting record revenue and continued growth.

It is hard to determine how many of the 3,000 eligible workers will take advantage of the buyout, but Loporchio said the company is hearing anecdotal evidence that a lot of employees are finding it very attractive.

The voluntary buyouts also will enable existing Fidelity workers to transition into different roles, which helps the company retain top talent, Loporchio said.

Workers will have several weeks to decide whether to accept the financial package, with an upcoming retirement date of June 30, said company officials.

According to the company’s website, Fidelity helps more than 25 million people invest their savings and nearly 20,000 businesses manage employee benefit programs.

The firm, which has been privately held for 70 years, also provides more than 12,500 financial advisory firms with investment and technology solutions to invest clients’ money.

The buyout offers came as Fidelity, known for its actively managed mutual funds, faces strong competition from low-cost index funds and other products.

On Feb. 16, the company reported its financial services operating profit rose nearly 20 percent to $3.5 billion for 2016, despite big withdrawals by investors from the company’s well-known actively managed funds.; Reuters contributed to this report.

Business Merrimack

More Headlines