100

Average number of asset liability modeling studies completed per year¹

500+

Terminated vested cashout projects with a total of 275k participants paid $10B in lump sums¹

600+

Annuity placements in U.S. since 1988¹



An Integrated, Holistic Strategy

To better react to changing market dynamics and de-risk, we provide a holistic approach to pension risk management — one that aligns your strategy with your plan´s overall funding status. Mercer´s pension risk consultants have proficiency in developing sophisticated strategies that include:

 

  • Setting glide paths and de-risk levels
  • Integrating risk management with funding improvement
  • Liability-driven investments 
  • Asset-liability modeling
  • Diversified growth portfolio construction
  • Pension risk transfer strategy and execution
    • Cashouts (active and vested terminated)
    • Buyouts
    • Plan termination

Pension Risk Transfer - Is It Right For Your Plan?

Pension risk transfer activity has experienced robust growth over the past few years. At Mercer, we’ve found that companies are changing defined benefit (DB) funding and risk strategies due to increasing Pension Benefit Guaranty Corporation (PBGC) premiums, capital market conditions, and operational complexities. As a plan sponsor, you may feel it is the right time to reduce or eliminate your pension funding shortfalls. We can help.

 

We will work with you to better understand your unique financial implications, the impact of your pension journey, and the ideal conditions for launching new activities. We believe that engaging the insurer market early will help bring clarity to the potential financial outcomes and sensitivities. Market and plan dynamics will impact relative pricing. To efficiently execute when the transaction is most compelling, we help you articulate the business case and work through readiness steps in advance.



A Ground-Breaking Platform for Pension Risk Management


While your DB plan may now be closed to new employees, it still represents a significant obligation for your company to manage alongside your on-going business. Economic factors are at play as well — driving up demand for annuity transactions. The problem? The annuity marketplace can be hampered by long execution timelines and lack of price transparency. As a plan sponsor, you require robust information on the financial position of your company’s pension plan, an understanding for how key financial metrics are developing over time, and values-customized pricing information. This information must be accurate, up-to-date, and easily accessible.

 

At Mercer, we offer a first-of-its kind platform that provides price transparency to the group and annuity market. Called the Mercer Pension Risk Exchange™, it supports you through each step of the annuity placement process for plan terminations, buyouts, and buy-ins. Potential benefits include:


Access to Regular Pricing From Insurers

 

This helps you assess the true market price of a deal.

Ability to Execute a Deal

 

Deals are executed in a more competitive price environment and shorter time frame than currently possible.

Preparation of Data and Documents

 

By preparing documents for fast execution, we advise on target price levels and plan metrics to monitor and establish triggers for taking action.

An Online and Mobile Solution

 

This allows sponsors and trustees access to valuable information anywhere, anytime.


 

 

 

 

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What can we do to really lock that funded status in and make sure that when the next crisis hits, we don’t find ourselves in the same position we were in 2008?
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MATT MCDANIEL
US Leader, Financial Strategy Group, Mercer

 

          Please See Important Notices For Further Information.

          1  The information above is as of July 2018.

 

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