Pension Risk Management Transfer | Mercer

Pension Risk Management Transfer

  • 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:

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:

Defined Benefit Insights
Stay informed with the latest thinking on pension risk management and transfer, research, regulations, and more.

 

          Please See Important Notices For Further Information.

          1  The information above is as of July 2018.

 

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