State Street Global Advisors Introduces “Ten Best Practices for Global DC Plans”
June 17 2015 - 9:00AM
Business Wire
Resource to Help Multi-National Corporations Tackle Complex
Global Workforce Retirement Challenges
State Street Global Advisors (SSGA), the asset management
business of State Street Corporation (NYSE:STT), today introduced
their “Ten Best Practices for Global DC Plans.” The paper provides
insights to help multi-national clients with defined contribution
plans (DC) in different countries approach them strategically to
attract and retain talent and produce better retirement outcomes
for employees.
“The need to achieve retirement security is a global concern. We
found that clients are seeking a guiding strategy and unifying
goals to direct their efforts globally,” said Fredrik Axsater,
global head of Defined Contribution at SSGA. “We developed these
ten guiding principles to help clients improve the retirement
readiness of their employees through their DC plans.”
The “Ten Best Practices for Global DC Plans” fall into four
categories:
- Define a global vision and related
goals and align benefits to support those goals
- Build efficient governance structures
to minimize risk and ensure that plans in different countries
support the overall goals
- Weigh the pros and cons of centralizing
investment and other functions to achieve operational and cost
efficiencies
- Improve plans’ effectiveness for
employees
“In our discussions we recognized that many clients find
themselves with a patchwork collection of DC plans around the
world, an accidental DC structure that developed as companies have
grown globally over time,” said Nigel Aston, managing director,
head of European Defined Contribution for SSGA. “The relatively
simple step of articulating an overarching strategy can improve
efficiencies between departments and divisions around the world,
such as human resources, finance and legal that influence employee
rewards. Our hope is that these principles will help improve the
efficacy of DC plans and benefits packages as a whole.”
SSGA conducted dedicated listening campaigns with multi-national
clients in the US, UK, continental Europe and APAC. This outreach
included the first of a series of global forums to encourage
dialogue and better understand, articulate and refine DC practices.
SSGA also engaged consultants, academics and other practitioners to
incorporate their views and gather strategic insights.
SSGA’s “Ten Best Practices for Global DC Plans” include the
following recommendations:
- Articulate total rewards goals
globally, ensuring that they reflect the company’s core brand,
culture and values. Those goals should be used to craft a strategic
blueprint for the company’s retirement plan. Other goals, such as
replacement ratios or other metrics needed to affirm the value of
an overarching strategy, should also be included.
- Seek ever-closer interaction between
benefit functions globally. Recognize that DC plans fit into a
wider network of benefits that may differ from country to country
but must be considered in aggregate. Make sure to align the
individual benefits in each country’s DC plan as closely as
possible to the overall strategic vision.
- Improve the plans’ ability to achieve
plan objectives for employees globally. Work systematically to
understand employee needs and priorities through research, employee
data analysis, surveys and engagement. Use that data to drive
higher savings rates, improved investment options and higher
employee engagement globally.
- Create a strong communications program
that drives greater employee engagement with the retirement plan,
improves retirement outcomes and builds employees’ confidence in
their ability to retire.
The full paper is available to view here.
About State Street Global Advisors
For nearly four decades, State Street Global Advisors has been
committed to helping our clients, and those who rely on them,
achieve financial security. We partner with many of the world’s
largest, most sophisticated investors and financial intermediaries
to help them reach their goals through a rigorous, research-driven
investment process spanning both indexing and active disciplines.
With trillions* in assets, our scale and global reach offer clients
unrivaled access to markets, geographies and asset classes, and
allow us to deliver thoughtful insights and innovative
solutions.
State Street Global Advisors is the investment management arm of
State Street Corporation.
*Assets under management were $2.4 trillion as of March 31,
2015. This AUM includes assets (approximately $28 billion as of
March 31, 2015) for which State Street Global Markets, LLC, an
affiliate of State Street Global Advisors, serves as the marketing
agent.
CORP-1460
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State Street CorporationAndrew Hopkins,
1-617-664-2422Ahopkins2@StateStreet.comorElizabeth Powell,
1-202-468-0908powell@daicommunications.com
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