On 29 November and 1 December 2011, AEGON Global Pensions organised the webinar 'Pensions in Europe' for members of the American Benefits Council and for people who had received the white paper respectively.
After a two-part webinar series on longevity risk, the American Benefits Council hosted a third webinar on 29 November 2011 on pensions in Europe. More than 150 members joined the webinar. The webinar on 1 December 2011 was attended by more than 70 companies that received the white paper 'Pensions in Europe'.
How multinational companies are preparing their pensions in Europe for the future
Guest speakers Heleen Vaandrager, Thurstan Robinson and Erik Schouten of AEGON Global Pensions, discussed the conclusions of the new white paper 'Pensions in Europe':
- Governance is becoming increasingly important;
- Defined Benefit pensions are in decline;
- New generation Defined Contribution pensions are being developed.
Heleen Vaandrager, co-author of Pensions in Europe, stated: ‘Over the past few years, multinational companies have taken major steps to improve their pensions management in Europe. Globalisation, increasing governance requirements, a focus on derisking and the desire for predictability are all driving companies to reassess and redesign their pensions. The global financial and economic crisis has accelerated this process. Although the crisis has made it more difficult for some companies to derisk their DB plans, it seems also to have increased the urgency of moving to DC pensions. And, as many of our interviewees pointed out, the next step is to ensure that these DC pensions are not only cost-efficient, but also fit for purpose.’
Four company archetypes
In addition, they identified four company archetypes on the basis of their approach to pensions, management style and company culture (please see the chart below).
Thurstan Robinson, co-author of Pensions in Europe, said: ‘The different types of companies interviewed clearly have divergent aims and desires for their pensions, but they are all unified by their desire for simplicity, clarity, sustainability and good governance.’
The way forward
Finally, they discussed which parties will lead the way in Europe.
Erik Schouten, co-author of Pensions in Europe, said: ‘It is clear that the pensions landscape in Europe is shifting. In such a transitional period, continuing and deepening the dialogue is crucial for all stakeholders – legislators, supervisors, providers and companies. Although it may look like something of an impasse has arisen, the European pensions environment is far from static, and we can expect some significant developments over the next year.’
More information
Please click here for the presentation slides of the webinar on 29 November, 2011.
Please click here for the recording of the webinar on 29 November, 2011.
