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Mercer
Investment consulting, pension risk management

Contact: Frank Oldham
Tel: +44 (0)20 7178 3355

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Pension risk management - Overview

Last updated: 16 December 2011

 

Identifying, assessing and eliminating pension risk 

Pensions are now a boardroom issue, as the costs and risks of managing them worldwide are becoming more significant. Mercer has an integrated approach to managing pension risk underpinned by leading-edge diagnostic and modeling tools.

 

 

Mercer and CFO Magazine - Pension Risk Survey results

REPORT NOW AVAILABLE

 

CFO research services

 
Mercer has collaborated with CFO Magazine to conduct a survey of senior-level finance executives' views on pension risk. The respondents represent some of the largest US companies with annual revenue of at least $500M. The survey looks at changes plan sponsors have made over the past few years to manage risk, and at pension risk management strategies being considered for implementation in the near term. Download the survey report from the link below. 

 

 Link icon Download report

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Mercer Dynamic De-risking Solution: An integrated approach to pension risk management  

 

Following the successful roll out in the UK, Mercer Dynamic De-risking Solution (MDDS) has now launched in the US. MDDS is an end-to-end outsourced solution for sponsors who wish to de-risk their plans over time. It is designed to help manage pension plans toward full funding while concurrently reducing risk – all in a timely, disciplined and cost-effective manner. 

 

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Mercer Frozen Plan Solution - A.I.M. to Exit

 

If you sponsor a frozen defined benefit pension plan you know that they have a unique set of management challenges. While freezing the plan reduced the financial risk it didn’t completely eliminate it. And the frozen plan no longer is key to attracting and retaining employees but continues to require ongoing financial and administrative upkeep. This webcast helps employers establish the best course for effectively managing the plan including financial and administrative considerations, and when appropriate, identifying an end-game strategy and building the framework for achieving the goal. (Recorded, 2 March 2010)

 

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Mercer's Cashout Solution: an end to end offering for settling deferred vested liabilities

 

Many plan sponsors marked 2012 on their calendars as the ideal time to implement a lump sum offering to deferred vested participants. Plan sponsors considering a lump sum offering in 2012 should begin the process now in order to ensure a successful transaction over the next 6-18 months. This webcast will touch on key issues related to this important topic.

 

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Pension fund volatility: Suffer, solve or ignore?


Volatility in equity and other financial markets wreaked havoc on pension plans this past summer, and there is no sure relief in sight. This article looks at the consequences of this turbulence on pension plans and considers both the short- and long-term actions organizations should think about.

 

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International Accounting Standard 19 - Amendments for Defined Benefit Plans (2011)

 

On June 16, the International Accounting Standards Board published amends to "IAS 19 - Employee Benefits", which will change significantly how companies recognize, present and disclose defined benefit plan obligations. Companies will be expected to give more detail in financial statements on their pension risk. In this GRP article, we explain the implications of the amendments and discuss the actions employers should take in preparation for 2013, when the changes come into effect.

 


 

Mercer GlobeIntroducing Mercer Globe

 

Mercer Globe is an integrated, web-based Retirement Financial Management system at your fingertips. Globe helps plan sponsors take control of complex global retirement plans, and understand their pension risk exposure.

 

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Developing a global pension risk strategyDeveloping a global pension risk strategy

In this Mercer Retirement video, Frank Oldham, Global Head of Defined Benefit Risk, examines the financial risks that are affecting global pension plans, and the importance of developing a global strategy to manage and mitigate risks. Taking appropriate measures to manage risk can support the financial health of global retirement plans.

 

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(Duration: 8 mins 11 secs)


 

Corporate finance in relation to pension funds - An industry perspective

 

Many companies are struggling with substantial pension legacies. These legacies have an onerous drain on the financial resources of the companies, resources that could much more effectively be spent in growing the business. Even more worrying is that the pension funds still expose sponsoring companies to substantial risks.

 

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Risk series: Borrowing to fund pension debt

 

The economic crisis over the past several years has severely jeopardized the funded status of most DB plans, prompting sponsors to explore new ways to manage the inherent risks associated with benefit, investment and funding policies. In this article, we examine the advantages of borrowing to fund pension debt and highlight the key issues to consider.

 


  

Financing defined benefit plans with captives

 

Multinationals are beginning to investigate the use of insurance companies to internally insure or reinsure their own risks. Such “captives” offer opportunities for financing DB pension obligations. This article takes a look at the benefits and challenges of such an arrangement in the specific context of financing of DB pensions.

 


MercerVision 2011 (UK): Pension and benefits - Managing present risk, new thinking for the future

MercerVision 2011 (UK) is a series of two live televised conferences on the theme of Pension and benefits - Managing present risk, new thinking for the future. Both events feature broadcaster Natasha Kaplinsky as our professional moderator.

 

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De-risking in practice. Client case study Ireland

Noel Keeley, Group Human Resources Director, Musgraves Group Plc, an Irish-owned food distributor, discusses how Musgraves reviewed their pension scheme strategy, redesigned benefits and implemented changes

 

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How we help clients. Identification and assessment of potential impact of pensions on business performance. Strategic risk advice and solutions: investment strategy, captive structures, liability management, covenant advice, longevity solutions buy-out, SPV structures, implementation and monitoring

 

 

Mercer is a leading global provider of investment consulting 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 portfolio management. We create value through our commitment to thought leadership; world-class, independent research; and top-notch consultants with local expertise.

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Contact: Frank Oldham
Tel: +44 (0)20 7178 3355