Management of defined benefit (DB) pensions is a complicated challenge for multinationals today, given that pension funds are usually located in countries outside the sponsor’s headquarters. It is essential to proactively tackle this problem and the impact it has on the multinational’s financial standing.
A weak governance framework will affect a multinational’s capacity to deliver pension promises to its members. It could result in loss of control over pensions by central management and a lack of efficient and effective global pension management. Corporate governance and asset-liability risk management must be considered simultaneously – unmanaged pension risk exacerbates governance issues and weak governance leaves financial risks unchecked.
An integrated framework is based on five key pillars that address most (if not all) of the internal and external pension issues relevant to multinational companies:
Investment in a quality framework will provide the most benefit during times of stress, when decisions have to be made quickly and under pressure, as it will supply vital information on pensions risk and exposure.
The integrated framework:
Mercer has considerable experience in defining, establishing and implementing these global, integrated frameworks. With this experience, we are in a position to help multinationals tackle both corporate governance and asset-liability risk management within the same integrated framework.
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Let Mercer work with you to implement an integrated framework and benefit from reduced risk exposure and global pension management costs as well as an improved governance structure!
For more information, download our informational flyer about this important topic and/or contact one of the following individuals:
+44 (0) 20 7178 3596
+44 (0) 20 7178 3251