Study highlights pension pressure on multinationals

Experts believe that a global pension scheme can reduce administrative costs by 6% to 10%. However, disparate tax laws and budget constraints were cited as barriers to developing a global pension arrangement

There is a broad consensus among the pension experts in the US and Europe that over the next five years, there will be a marked shift in the investment risk from employer to employee, according to a study of the global pensions’ market by the Netherlands based life and pensions group, AEGON and LIMRA International, a global research firm. The study, Bridging Pension Plans Worldwide emphasized the migration from defined benefit plans towards defined contribution plans.