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By Marc Voncken, partner, Solvency II Leader and Christian Scharff, partner, HRS Leader at PwC Luxembourg
The death of defined benefit (DB) pension arrangements has become a global phenomenon with employers grappling with what to replace it with, according to new research from PwC(1), entitled Moving On: Global retirement benefits in a post-defined benefits world. PwC surveyed 114 Fortune 500 global multinationals, which together employ 4.7 million people and have combined pension liabilities of $950billion, and found that only 6% wish to perpetuate DB arrangements, where the employer underwrites the costs and risks of providing workers with guaranteed pension incomes. Nine in ten are actively deploying defined contribution (DC) as their predominant workplace...
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