Prudential outsourcing NEPA jobs

Internal documents from Prudential Financial show the company is outsourcing work at its Scranton facility to a Florida company with ties to India, and leaving the door open for more to follow.

A two-page Prudential Retirement document titled “Moving Portions of DB Operations Functions” obtained by The Times-Tribune lays out the company’s plan to move work associated with about 30 jobs in Scranton and about 30 jobs in Hartford, Conn., to a Florida-based third-party administrator, CHCS Services. The move would eliminate 60 positions in Scranton and Hartford in phases by the end of 2010.

Based in Pensacola, Fla., CHCS Services focuses on health and life benefits administration. In April, it was purchased by Patni Computer Systems, headquartered in Mumbai, India.

The document, addressed to “Client-Facing Teams” and marked “Not for Distribution. Confidential” outlines how Prudential executives should make a business case for the decision, citing Prudential’s broad goal of providing cost-effective services to clients and meeting its obligation to shareholders and investors.

Prudential spokeswoman Dawn Kelly confirmed the authenticity of the document and said nothing in them contradicts what the company told employees or the press previously. “Our initial statement clearly says we were outsourcing,” Ms. Kelly said.

Even more ominous for Prudential’s 850 local employees is the suggestion in the memo that more jobs may be outsourced in the future.

“It is possible that we may decide to use external vendors in other areas where it might make sense in the future. … We must remain flexible and make changes to remain viable in the dynamic retirement marketplace,” the June 23 memo states.

U.S. Rep. Paul E. Kanjorksi, D-Nanticoke, meanwhile, has a meeting scheduled with Prudential officials Thursday to discuss the job cuts. He recently expressed his “deep frustrations and disappointment” with the company. A spokesman for Mr. Kanjorski said the congressman would wait until after Thursday’s meeting to comment.

The memos make it clear some employees would not be subject to this round of outsourcing. Those who work directly with clients and participants, including those who handle inbound calls, are being spared. Also, employees who work with specific union and government pensions are not losing their jobs in this round of cuts.

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