Mercer and Club Vita Collaborate to Enhance Longevity Risk Management in US Pension Industry

Mercer and Club Vita Collaborate to Enhance Longevity Risk Management in US Pension Industry

Mercer and Club Vita Collaborate to Enhance Longevity Risk Management in US Pension Industry

  • July 10, 2019
  • United States , New York

Mercer, a global consulting leader in advancing health, wealth and career, and Club Vita, an international leader specializing in longevity analytics, today announced that Mercer is the first consulting firm to offer Club Vita’s longevity risk reporting to its clients in the United States, effective immediately.  As part of their five-year agreement, Mercer’s pension plan clients in the United States will have access to Club Vita’s proprietary longevity assumptions, analytics and reporting, which will help them to help better assess and manage their plans’ longevity risk. In addition, the aggregate enhanced data set will also be used by Mercer’s consulting teams to provide more powerful insights to help with client decision making.

Bruce Cadenhead, Chief Actuary, Mercer, said “Longevity has become a crucial focus for plan sponsors as people are living longer, particularly in the current low interest rate environment. By working with plan sponsors to collect more insightful data, we can tailor each plan’s assumptions to their participants, increasing transparency and in turn, improving the value in pension risk transfer deals. Access to this data will help to justify lower pension liabilities in some cases.”  

Dan Reddy, US CEO, Club Vita, said “We aggregate longevity data to aid anyone who wants to be better informed about the true cost of their pension plan. By combining Mercer’s data with ours, and adding in our analytical strengths, we will empower pension plan decision makers to decide the best strategies to manage the costs associated with their plans.

Mr. Reddy concluded: “In a recent pilot program, we tested data aggregated from over 100 US pension plans. We found increases and decreases in pension plan liabilities of up to 6% relative to the standard Society of Actuaries tables, with a reduction in liabilities on average.”

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About Mercer

Mercer delivers advice and technology-driven solutions that help organizations meet the health, wealth and career needs of a changing workforce. Mercer’s more than 23,000 employees are based in 44 countries and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), the leading global professional services firm in the areas of risk, strategy and people. With 75,000 colleagues and annualized revenue approaching $17 billion through its market-leading companies including Marsh, Guy Carpenter and Oliver Wyman, Marsh & McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit www.mercer.com. Follow Mercer on Twitter @Mercer.

About Club Vita

Club Vita is a longevity data analytics company, which facilitates the pooling and statistical analysis of demographic data from defined benefit (DB) pension plans to reveal insights that would not be evident to the plans acting alone. Its two existing clubs have served the needs of plan sponsors and their advisors in the UK since 2008 and Canada since 2015. Club Vita’s innovative team has designed, built and refined ZIP code based socio-economic models for managing longevity risk. These enable plan sponsors not only to tailor their assumptions to reflect their people, but also to develop strategies to actively manage their longevity risk, so longevity is no longer just an actuarial assumption.  Club Vita’s models are used globally by several firms of actuarial advisors and insurance companies participating in the pension risk transfer market. For more information, please visit https://www.clubvita.us/.

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