Defined Benefit Financial Opportunities
Even though the financial position of many Canadian defined benefit (DB) plans have improved in recent years, the challenges and opportunities that exist for DB plan sponsors are growing in number and complexity.
In addition to ensuring tomorrow’s benefit security and achieving cost certainty, plan sponsors are called to:
- Strengthen governance processes
- Optimize alternative investment opportunities
- Understand and integrate ESG issues
- Seek sustainable investments
- Stay on top of evolving regulations
It’s a balancing act that requires keeping the long-term objectives of the plan in plain view and taking immediate steps to optimize the journey to get there.
Position your DB plan for the future
We can help you navigate the complex defined benefit landscape, pivot on market conditions and seize opportunities while managing risk and cost.
This video explains the ways that partnering with a consultant can unlock more possibilities for your DB plan.
How Mercer can support your defined benefit plan
Investment strategies are complex and dynamic. Defined benefit plan sponsors are pursuing a wider range of opportunities across the pension balance sheet to increase returns and manage risks.
To implement an investment strategy that reflects your long-term liabilities and goals, you need to be able to identify and develop the right strategic asset allocation and portfolio of managers to meet your needs.
Our global investment team examines a large range of asset classes and market/return drivers to create an optimal strategic plan to meet your plan's growth objectives with an appropriate risk profile.
Contact a Mercer consultant and we’ll work with you to make your plan more responsive, efficient and stable.
Stay on top of the latest defined benefit developments
The Mercer Pension Health Pulse is our index that examines the financial health of DB pensions for organizations across Canada.
Our Mercer pension database includes the financial, demographic and other information of the pension plans of Mercer clients in Canada.
We use this database to track the median ratio of solvency assets to solvency liabilities of almost 500 pension plans across Canada, in every industry, including public, private and not-for-profit sectors.
The information for each pension plan in the database is updated every time a new actuarial funding valuation is performed for the plan. We project the financial position of plans based on their most recent valuation date, reflecting:
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Estimated accrual of benefits by active members
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Estimated payments of benefits to pensioners and beneficiaries
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An allowance of interest
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Estimated impact of interest rate changes
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Estimated employer and employee contributions (where applicable)
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Expected investment returns based on the individual plan’s target investment mix, where the target mix for each plan is assumed to be unchanged during the projection period
The investment returns used in these projections are based on index returns of the asset classes specified as (or closely matching) the target asset classes of the individual plans.
Want to stay up to date on our quarterly updates? Contact us and we’ll make sure the Mercer Pension Health Pulse is sent to your inbox.