First-in-Canada solution will revolutionize the current DC landscape, enabling sponsors to become more strategic in the management of their retirement plans
Mercer, a global consulting leader in advancing health, wealth and careers, and a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), today announced Mercer Future Wise™, a first-in-Canada solution allowing the delegation of Defined Contribution (DC) pension and savings plan governance to a team of Mercer experts. The offering will add value across the spectrum, granting access to top tier investment managers, competitive fees, and greater governance and oversight.
A $2.7 trillion “savings gap” between retirement savings and retirement requirements exists in Canada – and it’s set to grow to $13.4 trillion by 2050. This gap cannot be closed without a commitment to improving Canadian retirement-readiness on the part of stakeholders in both the public and private sector. Mercer Future Wise™ is a critical part of the private sector’s solution to Canada’s retirement gap: by delegating plan governance to a team of experts, participating plan sponsors will be able to reduce costs, ease plan management responsibilities and provide participants with access to better outcomes.
“With this first-in-Canada offering, Mercer Canada will provide clients with a greater level of insight into their plan members’ engagement levels, as well as doing much of the heavy lifting in implementation and evaluation of client plans,” says Jillian Kennedy, Partner and Mercer’s Head of Defined Contribution and Financial Wellness in Canada. “Mercer Future Wise™ will allow clients to leave the details to us – saving time and money, and letting them refocus on what matters.”
The Canadian DC landscape remains challenging for plan sponsors. Plan fees are opaque, access to a broader set of investment opportunities is limited and proactively ensuring competitive fees is difficult to consistently monitor. The status quo may result in plan members paying higher fees than necessary and receiving limited advice and tools to save, and one day transition into retirement. Plan sponsors want to improve outcomes for their members, but are limited by lack of focused expertise, size of the retirement plan and low awareness of developing regulatory requirements.
With this first to market offering, Mercer is bringing innovation to the Canadian DC landscape, helping clients from coast to coast address their challenges. It is doing so by bringing its global expertise to bear: Mercer has been offering global delegation support for over 20 years and currently manages 500 DC clients and over $200B in delegated assets under management.1
“We wanted to bring delegated defined contribution solutions to the Canadian market so we can provide access to innovation and value for every plan sponsor and employee,” says Jean-Philippe Provost, Senior Partner and Mercer’s Wealth Business Leader in Canada. “Helping manage fiduciary obligations of plan sponsors and providing access to quality service can really move the dial in supporting the retirement preparedness of employees.”
With Mercer Future Wise™, Mercer will take on much of the work of plan governance:
- Plan Governance: conducting regular meetings with clients to manage plan design and benchmarking, assisting with annual filings, fee negotiations and contracting and regulatory monitoring and advice
- Partnership: Through our recordkeeping partner Manulife Financial, Mercer has teamed up with one of the largest group retirement service providers in Canada to bridge the “savings gap” of Canadian employees
- Due Diligence: Conducting oversight of all investment managers and our recordkeeping partner, selecting and monitoring them according to established benchmarks, performing due diligence reviews and managing the onboarding and conversion process
- Portfolio Management: Providing access to Mercer Global Investments Canada Limited’s (“MGICL”) global network of investment experts and investment funds, which may include MGICL selecting and monitoring managers, constructing portfolios and, where possible, executing manager changes
- Improving Outcomes: With this offering, Mercer will help Canadians make an easier transition from saving to enjoying retirement through continued access to investments, competitive fees and access to professional financial planning and counseling
More information on Mercer Future Wise™ can be found at: https://www.mercer.ca/en/what-we-do/wealth-and-investments/defined-contribution-plans/mercer-future-wise-delegated-defined-contribution-plans.html
Mercer is a global consulting leader in health, wealth and careers. Mercer helps clients around the world advance the health, wealth and performance of their most vital asset – their people. Mercer’s more than 20,000 employees are based in more than 43 countries and the firm operates in over 140 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global professional services firm offering clients advice and solutions in the areas of risk, strategy and people. With annual revenue of $13 billion and 60,000 employees worldwide, Marsh & McLennan Companies is also the parent company of Marsh, a leader in insurance broking and risk management; Guy Carpenter, a leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a leader in management consulting. In Canada, Mercer’s investment management services are provided by Mercer Global Investments Canada Limited and other consulting services are provided by Mercer (Canada) Limited. For more information, visit www.mercer.ca. Follow Mercer on Twitter @MercerCanada.