(Bloomberg) -- Fidelity Investments is offering buyouts to 3,000veteran employees to reduce costs and open opportunities for newerstaff, according to a person with knowledge of the matter.

Employees who are 55-years old by June 30 and have worked 10years at Fidelity will be eligible for the offer, saidthe person, who asked not to be named because the information isprivate.

The packages will include extended health-care coverage and atleast six months of salary. The proposal covers about 6.7 percentof the firm’s 45,000 employees.

Asset managers are reducing expenses as money flowsout of active products, which charge higher fees, intolower cost passive funds. Fidelity’s active equity mutual funds saw$57.7 billion in redemptions last year, while its index fundsattracted $16.1 billion.

Other big players in the industry have cut jobs and reduced pay.BlackRock Inc., the world’s largest money manager, State StreetCorp. and Pacific Investment Management Co. are among companiesthat have reduced staff.

Steve Austin, a spokesman at Fidelity, declined to comment.

Fidelity Chief Executive Officer Abigail Johnson wrote in thefirm’s annual letter that the move by investors into low-costindexing has created a more difficult world for money managers.Even with those challenges, Fidelity said its operating incomeincreased 20 percent to $3.5 billion as a rising stock marketboosted assets and the firm trimmed expenses.

The Boston Business Journal earlier reported on Fidelity’splans.

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