Plan sponsors for multinational corporations are encouraging theuse of investment products that can be used globally.

|

That’s according to the results of PIMCO’s first Global DefinedContribution Survey for Multinational Corporations, aimed athelping to identify the priorities and challenges associated withmanaging employee pension obligations in multiplecountries.

|

With the decline of defined benefit plans, employers areinstead increasingly offering defined contribution plans (in theU.S., 401(k) plans), to the extent that DCplans make up nearly half of the world’s $36 trillion in totalpension assets.

|

But when employers cross international boundaries, they have tobe sure that the plans they use serve all their employees.

|

In addition, they can encounter “significant obstacles,” saidPIMCO, in the design of a global DC plan.

|

Some of those obstacles can include local regulations that mustbe satisfied, as well as the need to provide broadly consistentbenefits to employees who relocate.

|

The survey sought data, trends, and opinions from 27multinational plan sponsors, which together includeover 850,000 DC participants and more than $150 billion in DCassets.

|

According to the survey results, among the top priorities ofplan sponsors providing DC plans is the need to attract and retaintalented employees with plans that help them retire at a desiredage with sufficient income.

|

Sponsors must also review global plan governance, includingcreation of a global retirement plan philosophy and the evaluationand possible streamlining of providers.

|

Other survey findings included the need to simplify investmentlineups, while encouraging investment managers to offer investmentproducts that can be used globally, and expanding access tointernational DC plans.

|

Nearly a third of respondent firms already offer aninternational DC plan, and nearly half said they may consideradding one in the future.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 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.