Context and challenges
launch of DC plan
participants
overall assets
(DB & DC)
The client, a multinational corporation, sought a modern, contribution-based pension solution that addresses demographic changes.
They needed a solution that:
- Offers employees flexible and secure retirement options while meeting the company’s regulatory and financial requirements.
- Optimizes risk and return with flexible payout options (lump sum and scheduled drawdowns over 5 to 10 years).
- Reflects employees’ retirement preferences via a lifecycle product.
- Provides efficient, passive asset management.
Objective 1
Tailor made
Objective 2
Efficient management
Objective 3
Communication is key
We built a lifecycle solution that was not only cost-effective to implement, but could also incorporate the client’s specific needs.
Our approach and solution
Moving from DB to DC
Amundi started to manage the majority of the client’s defined benefit liabilities in 2020. In 2022, we worked together to launch a complete solution for the client’s defined contribution plan, with overall assets of EUR 350m.
Drawing on Amundi’s:
- Expert pension teams
- Strategic asset allocation capabilities, in particular lifecycle solution design
- Wide range of passive investment solutions and money market funds
Together we implemented a contribution-based pension solution based on lifecycle models.
The solution features:
- Contributions & investment strategies that are dynamically adjusted according to employees' age
- A dedicated glidepath
- A de-risking phase starting 12 years before retirement and ending 2 years prior to retirement.
- Close collaboration to promote the solution, including jointly hosting a webinar, explaining the implementation of the pension plan to the company's employees
Amundi's responsibilities grew from being one of the pension fund's asset managers to taking on the role of advisor.
The highlights
participation from clients’ employees
inflows per year
The bottom-line
A retirement plan designed for modern needs
This new pension solution combines flexibility and transparency.
It offers a future-proof retirement plan that reflects employees’ lifecycle and meets the demands of a modern company.
A unique solution: tax- and transaction efficient, offered through a segregated German special fund structure.
A retirement plan designed for modern needs
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