Hibernia National Bank has teamed up with Automatic Data Processing, a New Jersey payroll processor, to offer 401(k) plans to small businesses.
The New Orleans bank said the program is unique because it will administer the plan for its customers. Using ADP software, Hibernia's product lets small businesses track all their 401(k) data.
Typical 401(k) plans require businesses to handle this function themselves and to coordinate the work of investment companies, attorneys, accountants, and other professionals involved.
Hibernia's plan is designed for businesses with 50 or fewer employees. It offers participants several investment options, including Hibernia's proprietary mutual funds and portfolios managed by Fidelity Investments, Neuberger & Berman Management Inc., and Putnam Investments. Hibernia is offering the product in Louisiana and Texas. It said Louisiana has more than 100,000 businesses with fewer than 50 employees.