State Street Global Advisors has announced its paper “Ten Best Practices for Global DC Plans,” which it says offers insights to multinational clients with defined contribution plans in different countries.

According to the firm, a strategic approach to those plans can serve a dual purpose: to both improve retirement outcomes for employees and to act as a recruiting and retention tool.

Read: Trends shaping retirement: DC advisors polled

The 10 guiding principles provided in the paper are intended to help the firm’s clients improve their employees’ retirement readiness through their DC plans.

The paper divides the best practices into four categories:

Define a global vision and related goals, and align benefits to support those goals
Build efficient governance structures to minimize risk, and ensure that plans in different countries support the overall goals
Weigh the pros and cons of centralizing investment and other functions to achieve operational and cost efficiencies
Improve plans’ effectiveness for employees

The overriding theme of the goals is to take a global approach, whether it’s in communicating among benefit functions within the company or in making sure that, while satisfying differing country requirements for DC benefits, the plans nonetheless align with the company’s overall strategic vision. Despite the fact that benefits may vary from country to country, the company must consider them in aggregate.

Among the State Street Global Advisors paper’s recommendations are the need to make sure that total rewards goals are communicated globally; that those goals reflect the company’s core brand, culture and values; and that they are used—along with other objectives—to devise a strategic blueprint for the company’s retirement plan.

In addition, companies should take advantage of research, employee data analysis and surveys to understand their employees’ needs and priorities—then use what they’ve learned to improve employee engagement, raise savings rates, and improve investment options.

Instant Insights /

State Street Global Advisors offers DC plan best practices

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