Toronto-based Mercer (Canada) Ltd. has launched the Mercer pension risk exchange in Canada, an online marketplace that provides real-time monitoring of annuities pricing to defined-benefit (DB) pension plan sponsors looking to transfer pension liabilities to an insurance provider.
Mercer estimates that DB plans in Canada have pension plan obligations of $1.4 trillion. The exchange is targeted to organizations that are looking to transfer the risk within their DB plans but lack clear information about the true cost of a buy-in or buyout and worry about the fluctuation of market rates, says Jean-Philippe Provost, leader of Mercer’s retirement practice in Canada, in a statement released on Monday.
“The Mercer pension risk exchange empowers sponsoring employers to be more strategic and sophisticated in their approach, allowing them to execute a buy-in or a buyout at the best time for them and at a competitive price,” he adds.
The platform, which is also available in the U.S and the U.K., will allow DB pension plan sponsors to monitor annuities pricing and financial metrics for their pension plans easily, from onboarding to execution, the announcement states.
“This new technology platform is the only solution that provides real-time and simultaneous annuities pricing monitoring in Canada,” says Jacques Goulet, president of Mercer’s retirement, health and benefits business globally. “This will help clients understand market pricing and, importantly, the best time to execute a transaction.”