Citigroup, State Street Form Benefits Firm

Citigroup Inc., the No. 1 financial services company, said it agreed to form a new company with State Street Corp. that will provide pension plans and other services in the U.S. and abroad. In addition to pension plans, the new venture, to be called CitiStreet, will offer defined contribution and health and welfare plans when it begins operations in the first half of 2000. The venture will focus on corporate and not-for-profit organizations, the companies said. They said they expect to administer about $200 billion in assets, covering more than 4 million plan participants. State Street, a Boston-based bank, will contribute its retirement investment services business and Wellspring Resources, its benefits administration unit, to the 50-50 joint venture. Citigroup will contribute its Copeland Cos. operation, which provides services such as investment counseling to plan participants. CitiStreet will be based in Quincy, Mass. and will have 3,000 employees.