Plan sponsors globally are accelerating their plans to manage their pension risk and eventually transfer it to outside parties, according to a new report by Mercer in the United Kingdom. Many countries have large pension obligations and plan sponsors have suffered because of low interest rates, volatile equity markets and rising life expectancies, all of which have been made worse by the economic downturn.
This has increased pension deficits significantly in many markets and made it difficult for chief financial officers to deal with increasingly unwanted pension distractions.
Mercer's data for the past five years show a significant increase in the size of bulk annuity and longevity swap deals. Since 2007, nearly 100 bulk annuity and longevity swap deals were made in the UK, totaling more than £33 billion.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
