Wealth and Investments

Pension Risk Management

Balancing Funding, Costs, and Risk

Funding for pension plans has recently endured extreme fluctuations, which will likely continue in the near future. Although strong returns from equities and higher bond yields increase plan funding, they also provide an opportunity to develop and implement an effective risk management strategy.

An Integrated Approach

Mercer provides clients with a holistic approach to pension risk management — one that aligns strategy with the plan’s overall funding status. Mercer’s pension risk consultants have proficiency in developing sophisticated strategies that include:

  • Setting glide paths and de-risking levels.
  • Integrating risk management with funding improvement.
  • Liability-driven investments.
  • Derivatives.
  • Buyouts.
  • Risk-transfer scenarios.

De-risking Dynamics

Mercer can help plans exploit opportunities to de-risk and react dynamically to changing market conditions. We can help establish glide paths and trigger levels. Most plans base triggers on funded status, but we go beyond that and work with clients to develop triggers based on interest rates, allowing plans to lock in higher interest rates automatically. For organisations seeking to terminate their plans, we can help develop time-based triggers.

Global Fiduciary Management

Mercer is the fiduciary manager for clients across the globe. We provide multinational organisations a single point of contact for providing consolidated fiduciary information to sponsors and trustees.

For more information on Mercer's Fiduciary capabilities please click here.

How Mercer Can Help

Mercer’s pension risk consultants have proficiency in developing sophisticated strategies, from setting glide paths and de-risking pension plans to building strong growth portfolios and more.

To find out more about Mercer’s pension risk management programmes please contact us.

Mercer Awards and Accreditations

The Institute and Faculty of Actuaries Quality Assurance Scheme (QAS) accreditation

European Pensions Awards 2016 Risk Management Firm of the Year

European Pensions Awards 2016 European Pensions Innovation Award

Financial News Investment Consultancy of the last 20 Years

Pensions Age Innovation Award 2016 for Mercer Pension Risk Exchange®

Portfolio Institutional #1 overall in 2016 Consultant Survey — for the 3rd year in a row

Chief Investment Officer 2016 Outsourced Survey #1 Provider

Wealth and Investments Solutions

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