SOURCE: PIMCO

PIMCO

December 28, 2015 10:00 ET

PIMCO Releases Its First Global Defined Contribution Survey

Top Priorities for Plan Sponsors Included Encouraging Investment Products That Can Be Used Globally

NEWPORT BEACH, CA--(Marketwired - Dec 28, 2015) -  PIMCO, a leading global investment management firm and retirement solutions provider, has released its first Global Defined Contribution Survey for Multinational Corporations to help identify the priorities and challenges associated with managing employee pension obligations in multiple countries.

As defined benefit (DB), or traditional pensions, continue to decline, more employers are offering defined contribution (DC) plans, best known as 401(k)s in the United States. Such retirement offerings now represent nearly half of the world's $36 trillion in total pension assets. 

"As multinational corporations roll out DC plans globally, they seek support from global retirement and investment leaders such as PIMCO. We created this survey to offer insight into global DC development and practices," said Stacy Schaus, DC Practice Leader. 

PIMCO's survey found that the top priorities of plan sponsors providing DC plans were:

  • Attracting and retaining talented employees with plans that help them retire at a desired age with sufficient income
  • Reviewing global plan governance, including creation of a global retirement plan philosophy and evaluating and possibly streamlining providers
  • Simplifying investment lineups and encouraging investment managers to offer investment products that can be used globally
  • Expanding access to international DC plans: Nearly a third offer an international DC plan already and nearly half said they may consider adding one in the future.

Still, for multinational corporations there can be significant obstacles to overcome when attempting to design a global DC plan such as distinct local regulations and providing broadly consistent benefits to employees who relocate.

About the Survey

PIMCO's Defined Contribution Practice prepared the 2015 Global DC Survey for Multinational Corporations  in response to requests from global firms looking for a deeper understanding of how peers address the challenges associated with having similar, but not identical, pension obligations in multiple countries. Our 2015 survey, PIMCO's first, captures data, trends and opinions from 27 multinational plan sponsors, which serve over 850,000 DC participants and more than $150 billion in DC assets. For survey highlights or other PIMCO DC publications, please contact us at 888.845.5012 or email us at pimcodcpractice@pimco.com 

About PIMCO
PIMCO is a leading global investment management firm, with offices in 12 countries throughout North America, Europe and Asia. Founded in 1971, PIMCO offers a wide range of innovative solutions to help millions of investors worldwide meet their needs. Our goal is to provide attractive returns while maintaining a strong culture of risk management and long-term discipline. PIMCO is owned by Allianz S.E., a leading global diversified financial services provider.

Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO's sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

Contact Information

  • Contact:
    Agnes Crane
    PIMCO - Media Relations
    212-739-4212