European benefit solutions - are we nearly there?
May 21, 2007
Multinational companies have long been seeking to reduce the cost and administration of their pensions and other risk benefits through pan-European arrangements. Recent EU Directives pave the way for such arrangements, and a range of options are now open to companies, including asset pooling, risk pooling, full pan-European pension funds and outsourcing. This article will explore each of these approaches.
The cry of ďare we nearly there?Ē, familiar to many parents, has long been heard in the world of pan-European benefit solutions. For years companies have been looking for a perfect solution where they can:
Reduce costs by centralising arrangements;
Remove barriers to investment;
Administer benefits from one place, irrespective of a memberís location;
Spread risks across a broader group of employees;
Retain tax advantages available locally (or even get the best of all those available);
Include mobile employees and move them between countries without difficulty.
In lieu of global solutions, the European market - where countries have been working more closely together over the last 30 years or so - has made significant steps.
Source: "European benefit solutions - are we nearly there?", Mercer, May 21, 2007