Retirement reinvented: 2021 priorities for defined contribution plans

Plan sponsors must approach 2021 on two fronts – ensuring resiliency to address today’s unique environment while evolving to prepare for a post-COVID world. What are the top 6 priorities DC plan sponsors should consider in 2021?

  • 2021 DC top priorities
    Retirement reinvented: DC plans 2021 priorities

    Here are 6 things you should consider as you set priorities for 2021.

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    Uncertain times can challenge your ability to meet your plan objectives. We believe that robust governance will give you the confidence and control you need in this difficult time.

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    This NACD blog post provides an overview of the SECURE Act objectives, benefits of PEPs, how a PEP works and three questions boards should consider asking management.

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Watch Replay -- Webinar: 2021 Top Priorities for Defined Contribution Plans | January 2021

 

What if you could secure your foundation, achieve greater prosperity, and inspire confidence — in your business and with your employees? As the retirement landscape continues to evolve, you may need ways to ensure your employees trust your programs, planning, savings, and investment advice, and at the same time, generate more value for your business.

 

Defined contribution and financial wellness spectrum of service

Click on boxes below to read three different scenarios of how we can work with you.(1)

multi-user Do it myself
Tools and Research

• Client situation: A plan with $3B in DC assets and 32,000 participants wanted to improve retirement readiness and overall financial wellness for employees. They needed an innovative way to engage the workforce.

• Mercer solution: Leveraging Mercer’s “Inside Employees’ Minds” survey and our “Financial Courage Index” provided insight. We advised on the concept of peer signaling to create a “nest egg” campaign.

• Results: 83% of targeted segments took action that could improve their finances.

Advice

• Client situation: A DC plan had grown through acquisitions to $1.2B in assets and 5,000 participants. Client wanted advice on streamlining the plan.

• Mercer solution: Mercer conducted a plan line-up review, recommended reducing number of investment options from 31 to 13 — recognizing Target Date Funds as one option— by eliminating redundancy.

 

• Results: Reduced annual investment expenses by $2.3 million per year through use of collective trusts and separate accounts.

 

OCIO Solutions

• Client situation: The DC plan’s investment line-up was too complex for participants. Client also wanted cost and risk reduction and a more comprehensive governance model.

• Mercer solution: After reviewing delegated vs. advisory models against client objectives, client chose an OCIO model. We helped streamline the fund line-up with custom, multi-manager options and a white-label approach.

• Results: Enhanced governance structure reduced risk, and reduced investment management and operating fees by $2.1M per year.

multi-user Do it for me
image1

Governance, Plan design, Administration

Get the operational infrastructure support you need for enhanced governance and risk management.

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OCIO Solutions

A “do-it-for-me approach” that may help you mitigate fiduciary risk and have more time to spend on the strategic issues of your business. Mercer defines the plan investment menu to align with your desired structure and handles all implementation and plan evaluation— we offer a continuum of OCIO solutions.

Improving Your Outcomes

Improving your outcomes, improving your benefits

From governance to mitigating fiduciary risk, our defined contribution solutions help you generate more value for your business and your employees. We can offer the right level of risk management from plan oversight and ongoing monitoring to customized financial wellness programs that seek to improve your employees’ well-being, enhance participant success, and enable your employees to take more control over their financial futures.

45+
Years of insights and experience with defined contribution plans.
#1
Investment consultant by global assets under advisement.
$44 Billion
In delegated defined contribution assets within the past five years.
Ranked #1
“Investment Consulting Firm – Sustainable and Responsible Investing” category by IRRI Survey 2017.

 

Why choose Mercer for defined contribution and financial wellness?

  • Leadership: We are one of the largest OCIO providers globally and offer a continuum of delegated DC solutions for large companies.5
  • Expertise: For 45+ years, we have been designing and managing customized defined contribution plans.
  • Holistic, client focused: Our integrated solutions go beyond asset accumulation to focus on all aspects of a participant’s life.
  • Innovation: For mid-sized plans, Mercer Wise 401(k) offers a comprehensive retirement solution, particularly for mid-sized plans.
  • Financial Wellness: We’ve spent years researching and providing advice on financial wellness and have worked with hundreds of financial wellness providers and created customized programs for clients.

 

 

 

 

 

   Please See Important Notices For Further Information.

 

     1  These case studies are illustrations of Mercer's capabilities provided to certain clients.  Client results will vary and there can be no guarantee of similar results.

     2 Pensions & Investments. Pensions & Investments Survey, November 27, 2017. Please see “Important Notices” for more information on Assets Under Advisement.

     3 Data is as of December 31, 2017. Please see “Important Notices” for more information on Assets Under Management.

     4 Independent Research in Responsible Investment, Survey 2017.

     5 CIO 2016 Outsourced-Chief Investment Officer Survey February 28, 2017. Please see Important Notices for further information on Assets under Advisement and Assets under Management.

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