The move follows an extensive study that convinced Ford that engaging an external partner to administer benefits will improve service to employees and retirees while reducing administrative costs.

The administration of the defined contribution plans (SSIP and TESPHE, for example) will transition to ACS effective Jan. 5, 2010.  Administrative services for other benefits (such as health care and pension plans) will transition to ACS later in 2010.  Employees and retirees will receive specific information regarding the transition of administrative services for these benefits at the appropriate time.

"I view this as a great move for our company, as well as for our employees and retirees," said Rick Popp, Director, Ford Employee Benefits. "As a leader in their industry, ACS will leverage leading technology for online and call center services, while streamlining our data information management and reducing administrative costs."

The move to ACS also will provide employment opportunities. 

"ACS will open a call center in Allen Park (Mich.) later this month and will transition many of our current agency employees, as well as new hires, to their center over the next year," Popp said.   

No action is required of employees at this time.  Additional communications and answers to subsequent questions will be sent to employees in the coming months.