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Defined Contribution

 

 

ABOUT DC

 

Mercer provides end-to-end DC consulting from plan design to investment advice to administration. Our DC specialists work with clients to ensure that their DC plans fit their corporate objectives and that the plans are designed to attract, motivate and retain the best employees. We work with both multinational and domestic organizations to create “high-performing” DC plans that help employees plan and save for retirement. Current DC plan hot topics across the globe relate to benefit adequacy, member engagement, fee transparency and post-retirement spend down.

 

10 IDEAS TO CONSIDER: Is your DC plan as successful as it can be? Learn more

 

DC Connections - Is your DC plan successful? Factors to consider when measuring successIS YOUR DC PLAN SUCCESSFUL?
FACTORS TO CONSIDER WHEN MEASURING SUCCESS

 

Volume VI - January 2012

 

We are delighted to present the sixth edition of Mercer’s DC Connections. In this issue, we explore the critical success factors of defined contribution (DC) plans. The topic of plan success comes during a period of turmoil that is driving the prioroties of the DC plan. From an employee perspective, retirement savings is becoming a more important element of the employment value proposition. As highlighted in Mercer's recent Inside Employees' MindsTM  survey of attitudes about elements of the employment value proposition, effective savings and retirement programs were highlighted as an important element of the value proposition in nine of the 17 countries surveyed. Further, in the US and Canada, retirement programs ranked the second most important element (behind pay) to the elements of the employment "deal."

 

Arrow icon Download PDF A4 | US Letter or alternatively, please view articles in full online.

 

WEBCAST

LATEST TRENDS IN DEFINED CONTRIBUTION AND WORKPLACE SAVINGS (UK)

 

In recent years, there has been a significant shift in the business landscape. The focus has shifted towards operational optimization and overall cost reduction. This has had an impact on how companies have designed and structured their global mobility programmes.

 

The coming years will see Defined Contribution (DC) schemes maturing, new legislation coming into force (including auto-enrolment) and the needs of multigenerational workforces diverging.

 

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DEVELOPING A GLOBAL POLICY FOR CONTROLLING YOUR DEFINED CONTRIBUTION PLANS


With knowledge of best practices as well as modern tools and information systems, multinationals can create effective global DC plan policies that will deliver success. This article takes a look at the criteria that could be used as a benchmark for a given multinational’s DC plan around the world.

 

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MERCER DC HEALTH CHECK (IRELAND)


Mercer DC Health Check can help trustees and sponsors review the suitability of their DC arrangement to ensure that it is fully compliant and meets the needs of all parties.

 

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DEFINED CONTRIBUTION INVESTMENT SURVEY


Mercer issued a short survey (19 questions) in May 2011 to assess plan sponsor's views on investment trends in defined contribution (DC) plans - such as the use of inflation protection options and other asset classes as standalone options, the trend in target date/target risk options and the usage of investment advice/managed accounts.

 

Arrow icon Go to survey results

 

WEBCAST

DC PLANS AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS: THE WHAT, WHY AND HOW

 

Asset owners and investment managers are becoming increasingly aware of the potential impact environmental, social and governance (ESG) risks and opportunities can have on investment performance. In March, the Ontario government proposed that plans registered under the Pension Benefits Act be required to disclose whether or not their Statement of Investment Policies and Procedures (SIPP) address ESG factors. In this webcast, Mercer experts Jane Ambachtsheer and Oma Sharma discuss these developments and address the following questions:

 

  • Can ESG factors have a material impact on investment risk and return?

     

  • How do investors go about assessing if and how their investment managers integrate ESG considerations into investment decision making?

     

  • What can you do if plan participants request a socially responsible or “green” fund option?

     

  • What is the best approach for a DC plan to address ESG, and what steps does it entail?

 

Drawing from both Canadian and international case studies of DC plans, we share knowledge and guidance around emerging trends and global best practices to help plan administrators consider their options for addressing ESG in 2012 and beyond.

 

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LONGEVITY, INVESTMENT RISK AND DEFINED CONTRIBUTION: PLANNING FOR FAILURE? LESSONS FROM AUSTRALIA

Would you buy a car if it worked only 50% of the time?

 

For members of defined contribution (DC) plans, 50% of the time retirement objectives will not be met if retirement plan calculations are based on average investment return and average life expectancy. This means that around half the time, investment expectations will not be fulfilled.

 

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MERCER DC FIDUCIARY FRAMEWORK TM 

HELPING RESPONSIBLE FIDUCIARIES MANAGE EFFECTIVELY

 

When did managing defined contribution (DC) retirement plans become so challenging? Originally intended as supplemental savings vehicles to complement well-funded defined benefit plans, DC plans have become the ongoing and primary employer-sponsored retirement plan for most Americans. Along with participants’ need for strong performance have come increased regulatory activity, governance requirements andfiduciary concerns.

 

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How we help clients: income adequacy, investment strategy and management, longevity projections, vendor management, risk analysis, DC global plan management, member engagement and communication, administration and member support, plan member engagement and communications

 

 

 

Mercer is a leading global provider of investment services, and offers customized guidance at every stage of the investment decision, risk management and investment monitoring process. We have been dedicated to meeting the needs of clients for more than 30 years, and we work with the fiduciaries of pension funds, foundations, endowments and other investors in some 35 countries. We assist with every aspect of institutional investing (and retail portfolios in some geographies), from strategy, structure and implementation to ongoing fiduciary management.

 

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