Defined Contribution
Mercer provides end-to-end DC consulting from plan design to investment advice to administration. Our DC specialists around the world work with clients to ensure that their DC plans fit their corporate objectives and ensure the plans are designed to attract, motivate and retain the best employees. We work with both multinational and domestic organizations to create “high-performing” DC plans that help employees plan and save for retirement. Current DC plan hot topics across the globe relate to benefit adequacy, member engagement, fee transparency and post-retirement spend down.
Case Study
A large US retailer had struggled with its retirement offering for some time. Eligibility for the traditional final-average pay benefit was frozen about five years ago. As a result, new hires were covered by a cash balance arrangement. While all employees were covered by a 401(k) plan, there was no company match. Further, higher-paid employees were not able to maximize their savings due to poor participation. Key employee groups such as store managers and pharmacists complained. Consequently, the business was having problems recruiting and retaining staff for these key positions. In the face of these challenges, management turned to Mercer to revisit the retirement options.
