GLOBAL - Multinational corporations are moving towards centralised control and cross-border pensions, says Mercer Investment Consulting.
The firm says its 2004 Financial Management of Multinational Retirement Plans survey shows most respondents have already shifted or are “moving decisively” toward a more global perspective.
“Multinationals are rising to the challenge of managing retirement plans on a cross-border basis,” said head of Mercer IC’s multinational investment consulting services Stacy Scapino.
“The primary drivers toward implementing a cross-border management framework are governance and risk and cost control.”
Global head of Mercer IC, Tim Gardener, added: “Many multinational organisations are seeking to identify and gain more control over areas where costs can escalate and where there could be significant negative consequences to reputation. Experience with clients has taught us that multi-country risk analysis and risk management can help global corporations meet their financial goals.”
In 2004, Mercer found 61% of respondents had some form of global funding policy and only 11% had no funding policies. In 2002, 76% of respondents had no funding policies in place.
Among the 130 multinational respondents, 52% are headquartered in the US, 17% in Ireland and continental Europe, 13% in the UK and 9% in Canada. The remaining 9% are headquartered in South Africa, Australia and Asia.
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Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers