Mercer

Designing High-Performing Defined Contribution Plans



What we do How Mercer can help Our thought leadership Delegated defined contribution
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Mercer’s defined contribution plan specialists ensure clients’ plans are founded on sound governance and help attract, motivate and retain the best talent.

THE CHALLENGES OF DEFINED CONTRIBUTION PLANS

Defined Contribution plans are becoming the retirement vehicle of choice in many countries. The drivers for this include employers’ concerns around the cost and risk of Defined Benefit plans as a result of financial market volatility and greater accounting transparency, coupled with changing demographics and a more mobile workforce.

 

However, as defined contribution plan assets grow apace and these plans prove to be the future of pension provision, particularly as the State steps back, forward-thinking companies are starting to recognize the impact defined contribution plans can have on their business. Inadequate defined contribution plans and poor governance leave businesses exposed to significant financial, operational and reputational risks. The legislative environment in which defined contribution plans operate is becoming more stringent and financial regulators have the power to, and have, imposed multi-million dollar fines where employers fail to comply.

 

Increasingly, the onus is on the employer to play a greater role in supporting their employees to make decisions to generate a sustainable income in their retirement. This will require comprehensive and targeted communications to educate and engage their workforce to plan for the long-term, at a time when there are competing short-term demands for their money.  If employers take a back-seat, then this will create workforce management challenges down the line as older employees will be unable to retire and so will undermine the defined contribution plan as an effective recruitment and retention tool.

YOUNGER EMPLOYEES ARE URGED TO SAVE FOR RETIREMENT

Pensions may be the last thing on a young person's mind, but it is never too soon to ask whether you are saving enough.

 


 

AUSTRALIA’S SUPERANNUATION SYSTEM

Telling the full super story

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Our defined contribution plan specialists work with clients to ensure their DC plans fit corporate objectives and help employees plan and save for retirement.

HOW MERCER CAN HELP

 

Mercer has a comprehensive range of defined contribution plan solutions all in one place, focused around the design, management and investment stages.

Defined Contribution Plan Design

  • Identification of plan objectives balancing the people, cost and risk challenges facing employers
  • Positioning employees to achieve optimal retirement outcomes
  • Design solutions using behavioral finance to integrate contribution and investment strategies during pre-and post-retirement

Defined Contribution Plan Management

  • Single, multi-employer and multi-country plans
  • Governance and control including vendor management
  • Legal and compliance consulting
  • Investment consulting and implementation including broad fund choice
  • Administration, record-keeper oversight and operational support
  • Plan member communications and engagement
  • Participant behavior monitoring and spend-down analysis

Defined Contribution Plan Investment

  • Customized assistance for plan sponsors, employees and retirees
  • Investment management solutions
  • Wider workforce savings solutions
  • Annuity placement assistance
  • Outsourced asset management solution with custom fund development, manager selection and monitoring
  • Individual advice including income adequacy and retirement readiness analysis
  • Individual wealth management solutions and investment allocation advice

UK MERCER DC AND SAVINGS FORUM: ENSURING VALUE IN A BRAVE NEW WORLD
Register now for these complimentary events

 

/content/dam/mercer/1000x282/Gradient Versions/img-FL000259c-gradient-1000x282.jpg

Mercer experts provide leading-edge thinking to help our clients address their defined contribution plan challenges.

Access our two surveys - from the employer and the employee perspective

 

Risk management for global DC pension plans
Mercer’s Tony Pugh on how and why sponsors should start assessing the risks associated with defined contribution, as well as defined benefit, plans.

 


DC Fee Management - Mitigating Fiduciary Risk and Maximizing Plan PerformanceMercer's POV on DC Fee Management will help plan sponsors to ensure DC plan fees are competitive and appropriately allocated, and assist committee members in satisfying their fiduciary requirements.

Mercer ASPIRE - The Next Generation DC Pension and Saving Solution (Ireland)

/content/dam/mercer/1000x282/Gradient Versions/img-FL000132b-gradient-1000x282.jpg

With industry-leading capabilities, Mercer can help mitigate fiduciary risk, improve defined contribution plan outcomes, and allow clients to focus on their core business operations.

Making Accountability Work - Effective Employer Strategies in a Multi-Generational Age

        

CONTACT US ABOUT OUR RETIREMENT SERVICES*Required


What we do

Mercer’s defined contribution plan specialists ensure clients’ plans are founded on sound governance and help attract, motivate and retain the best talent.

THE CHALLENGES OF DEFINED CONTRIBUTION PLANS

Defined Contribution plans are becoming the retirement vehicle of choice in many countries. The drivers for this include employers’ concerns around the cost and risk of Defined Benefit plans as a result of financial market volatility and greater accounting transparency, coupled with changing demographics and a more mobile workforce.

 

However, as defined contribution plan assets grow apace and these plans prove to be the future of pension provision, particularly as the State steps back, forward-thinking companies are starting to recognize the impact defined contribution plans can have on their business. Inadequate defined contribution plans and poor governance leave businesses exposed to significant financial, operational and reputational risks. The legislative environment in which defined contribution plans operate is becoming more stringent and financial regulators have the power to, and have, imposed multi-million dollar fines where employers fail to comply.

 

Increasingly, the onus is on the employer to play a greater role in supporting their employees to make decisions to generate a sustainable income in their retirement. This will require comprehensive and targeted communications to educate and engage their workforce to plan for the long-term, at a time when there are competing short-term demands for their money.  If employers take a back-seat, then this will create workforce management challenges down the line as older employees will be unable to retire and so will undermine the defined contribution plan as an effective recruitment and retention tool.

YOUNGER EMPLOYEES ARE URGED TO SAVE FOR RETIREMENT

Pensions may be the last thing on a young person's mind, but it is never too soon to ask whether you are saving enough.

 


 

AUSTRALIA’S SUPERANNUATION SYSTEM

Telling the full super story

How Mercer can help

Our defined contribution plan specialists work with clients to ensure their DC plans fit corporate objectives and help employees plan and save for retirement.

HOW MERCER CAN HELP

 

Mercer has a comprehensive range of defined contribution plan solutions all in one place, focused around the design, management and investment stages.

Defined Contribution Plan Design

  • Identification of plan objectives balancing the people, cost and risk challenges facing employers
  • Positioning employees to achieve optimal retirement outcomes
  • Design solutions using behavioral finance to integrate contribution and investment strategies during pre-and post-retirement

Defined Contribution Plan Management

  • Single, multi-employer and multi-country plans
  • Governance and control including vendor management
  • Legal and compliance consulting
  • Investment consulting and implementation including broad fund choice
  • Administration, record-keeper oversight and operational support
  • Plan member communications and engagement
  • Participant behavior monitoring and spend-down analysis

Defined Contribution Plan Investment

  • Customized assistance for plan sponsors, employees and retirees
  • Investment management solutions
  • Wider workforce savings solutions
  • Annuity placement assistance
  • Outsourced asset management solution with custom fund development, manager selection and monitoring
  • Individual advice including income adequacy and retirement readiness analysis
  • Individual wealth management solutions and investment allocation advice

UK MERCER DC AND SAVINGS FORUM: ENSURING VALUE IN A BRAVE NEW WORLD
Register now for these complimentary events

 

Our thought leadership

Mercer experts provide leading-edge thinking to help our clients address their defined contribution plan challenges.

Access our two surveys - from the employer and the employee perspective

 

Risk management for global DC pension plans
Mercer’s Tony Pugh on how and why sponsors should start assessing the risks associated with defined contribution, as well as defined benefit, plans.

 


DC Fee Management - Mitigating Fiduciary Risk and Maximizing Plan PerformanceMercer's POV on DC Fee Management will help plan sponsors to ensure DC plan fees are competitive and appropriately allocated, and assist committee members in satisfying their fiduciary requirements.

Mercer ASPIRE - The Next Generation DC Pension and Saving Solution (Ireland)

Delegated defined contribution

With industry-leading capabilities, Mercer can help mitigate fiduciary risk, improve defined contribution plan outcomes, and allow clients to focus on their core business operations.

Making Accountability Work - Effective Employer Strategies in a Multi-Generational Age

        

CONTACT OUR TEAM

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CONTACT US

    • UNITED STATES
    • Amy Reynorlds
    • Partner Richmond Email +1 804 344 2639
    • UNITED KINGDOM
    • Paul Macro
    • Partner Leeds Email +44 113 394 7783
    • EUROPE
    • Tony Pugh
    • Senior Partner London Email +44 20 7178 6918
    • CANADA
    • Neil Lloyd
    • Partner Vancouver Email +1 604 609 3136
    • PACIFIC
    • Graeme Mather
    • Partner Syndney Email +61 2 8864 6279
    • GLOBAL
    • Fergal McGuinness
    • Senior Partner Zurich Email +41 44 200 45 28

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