Mercer Advises Federal Policymakers on Defined Contribution Retirement Issues

Two Mercer consultants are among the witnesses testifying today before the ERISA Advisory Council’s Working Group on Spend Down of Defined Contribution Assets at Retirement, following a third Mercer consultant’s testimony yesterday before another ERISA Advisory Council working group. Separately, Mercer has provided written testimony to the Senate Committee on Aging. The ERISA Advisory Council advises the Secretary of Labor and makes recommendations regarding the Secretary's functions under ERISA, the federal law that governs most pension and other benefit plans. The Working Group on Spend Down of Defined Contribution Assets at Retirement is studying benefit distribution issues related to the proliferation of defined contribution plans, from which benefits typically are paid in a single lump sum. The working group is meeting today as it studies ways that plan sponsors can enhance participants’ ability to manage retirement assets after employment. Mercer consultant Neil Lloyd, principal and intellectual capital leader for Mercer’s global defined contribution business, today will discuss lessons learned from other countries with mature defined contribution retirement systems, such as Australia. Philip Suess, a Mercer worldwide partner, will discuss annuity options being developed that are aimed at providing benefits in a stream of payments rather than in a single lump sum. Barbara Marder, who leads Mercer’s global defined contribution business, today provided written testimony to the Senate Committee on Aging, which is convening a hearing today to examine how 401(k) and other defined contribution plan sponsors can encourage participants to build – rather than deplete from – their retirement savings. Mercer consultant Troy Saharic testified on July 15 before another ERISA Advisory Council working group on the challenges and risks associated with target date funds, which have grown in popularity as an investment option in defined contribution plans. Copies of all testimony are available from Stephanie Poe (Stephanie.Poe@mercer.com). About Mercer Mercer is a leading global provider of consulting, outsourcing and investment services. Mercer works with clients to solve their most complex benefit and human capital issues, designing and helping manage health, retirement and other benefits. It is a leader in benefit outsourcing. Mercer’s investment services include investment consulting and multi-manager investment management. Mercer’s 18,000 employees are based in more than 40 countries. The company is a wholly owned subsidiary of Marsh & McLennan Companies, Inc., which lists its stock (ticker symbol: MMC) on the New York, Chicago and London stock exchanges. For more information, visit www.mercer.com