Risk is about the future. What is your time horizon? Are you balancing pension plan funding, costs, and risk to deliver and implement an effective risk management strategy?
We can Help.
Average number of asset liability modeling studies completed per year¹
Terminated vested cashout projects with a total of 275k participants paid $10B in lump sums¹
Annuity placements in U.S. since 1988¹
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:
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.
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.
We’d be happy to set up a free consultation or send you more information to get you started.