Defined Benefit
Mercer provides financial risk management consulting services to defined benefit pension plans around the world. This includes strategy setting, implementation of financial strategies of all types, and the ongoing monitoring and management of these strategies. Our Financial Strategy Group works with clients to address the financial risk management issues related to their DB plans. Our iRFM framework guides our work with clients to use the three policy levers – Design, Contributions and Investment – to ensure that their plans perform optimally, all underpinned by the proper governance structure.
Case Study
Managing the retirement program to facilitate global expansion
A large US-based global chemical company wanted to expand its presence into Asia Pacific and Eastern Europe to generate profitable growth. Some of this expansion would involve adding capacity to existing product lines, but much of it would be focused on developing new product lines, representing a horizontal integration strategy for the company. To accomplish this, considerable local country hiring would be needed, but the company also wanted to transfer mid-career US and UK engineers and key managers. Financially, the expansion would require considerable borrowing, and because the company's pension plan was considerably underfunded, the company was worried about what any new debt would do to its credit rating. So it turned to Mercer for help.
White Papers 
- Investments in Unprecedented Times
Has the music stopped? - Linking Assets and Liabilities
Minding the 'gap': Credit spreads and LDI