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Mercer Projects 2027 HSA, HDHP, and Excepted-Benefit HRA Figures

"Mercer projects the 2027 inflation-adjusted amounts for health savings accounts (HSAs), high-deductible health plans (HDHPs), and excepted-benefit health reimbursement arrangements (HRAs) will increase from 2026 levels."  MORE >>

Mercer Projects 2025 Retirement Plan Limits

"Mercer projects that every key Internal Revenue Code (IRC) limit for qualified retirement plans will likely rise from 2024 to 2025. The 2024 limits will reflect increases in the Consumer Price Index for All Urban Consumers (CPI-U) from the third quarter of 2023 to the third quarter of 2024.... [A table] shows Mercer's projections of the 2025 limits compared with the actual 2024 amounts."  MORE >>

Mercer Comment Letter Responding to House Committee RFI on Ways to Strengthen ERISA (PDF)

"Mercer recommends the committee direct the Congressional Research Service to publish an extensive report on ERISA preemption. Copies of the report should be sent to every state's insurance commissioners and legislators, as well as the leadership of the National Association of Insurance Commissioners  ... Mercer recommends building on recent transparency improvements to ensure that group health plan fiduciaries have access to the information they need to better fulfill existing fiduciary duties, including selecting and monitoring service providers that administer plan benefits."

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Principles to Balance Retirees' Needs and National Interests: 2025 Mercer CFA Institute Global Pension Index

" 'Pension systems with no or limited restrictions tend to perform better in the Index,' commented Tim Jenkins, lead author of the report and Partner at Mercer. 'This suggests that instead of imposing mandates, governments can focus on making investment options attractive, promoting transparency and sound governance, and fostering collaboration with the private sector to support sustainable retirement systems and economic growth.' "  MORE >>

Mercer Projects 2025 Retirement Plan Limits

"Mercer projects that every key Internal Revenue Code limit for qualified retirement plans will rise from 2024 to 2025. The 2025 limits will reflect increases in the Consumer Price Index for All Urban Consumers (CPI-U) from the third quarter of 2023 to the third quarter of 2024. This updated article reflects the final CPI-U value for September. IRS usually announces official limits for the coming year in late October or early November."  MORE >>

Mercer CEO Brings Employers' Legislative Priorities to Capitol Hill

"Mercer CEO and President Pat Tomlinson ... focused on two legislative priorities for employers: preserving ERISA's long-standing preemption and protecting current tax incentives for employer-sponsored healthcare and retirement plans. He talked about studies that have shown that for every $1.00 of tax expenditure, multiples of that amount are paid by employers to finance health and retirement benefits. He also discussed the importance of pharmacy data transparency to employers."

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Mercer and ERIC Comment Letter to CMS on Reporting on Pharmacy Benefits and Prescription Drug Costs (PDF)

"Some employer-sponsored medical benefits (such as expatriate plans, standalone telehealth plans, and other unique benefit designs) provide insignificant coverage of prescription drugs. Requiring these plans to report prescription drug information would be statistically inconsequential and would not benefit the Departments.... Currently, there are many programs offered to employers called copay maximizer and accumulator programs that allow the value of these programs to be captured by plan sponsors.... The Departments' approach excludes this type of cost-sharing assistance from the definition of 'prescription drug rebates, fees and other remuneration.' "  MORE >>

Mercer Projects 2022 Retirement Plan Limits Will Soar Due to Inflation

"Almost every key Internal Revenue Code limit for qualified retirement plans will increase significantly in 2022, Mercer projects. The 2022 limits will reflect increases in the Consumer Price Index for All Urban Consumers (CPI-U) from the third quarter 2020 to the third quarter 2021. Using this measure, inflation will likely reach its highest level since 2008 -- possibly since 1990 -- and cause some limits to rise by the equivalent of up to three years' worth of ordinary increases."  MORE >>

ERIC and Mercer Response to EBSA RFI: Reporting on Pharmacy Benefits and Prescription Drug Costs (PDF)

"ERIC and Mercer request that the Departments consider issuing a delay for the Final Rule, in order to give employers time to negotiate and execute new contracts that will ensure they receive the required reporting information from all third-party vendors.... Plans and issuers will need at least 12 months to prepare the required data for submission to the Departments and [OPM].... Collecting data can be a daunting task for self-insured employers if they have carved out their pharmacy benefit to a PBM."

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Mercer Submits Comments to DOL Supporting National Paid Leave Standard

"[T]he COVID-19 pandemic has highlighted the need for a uniform, nationwide approach to paid leave and put a spotlight on the patchwork of state and local requirements that arise in the absence of a federal solution. The comment letter explains that employers, particularly multijurisdiction employers, are struggling in a time of crisis to understand the compliance requirements of numerous different laws, while trying to support their workforce in a consistent and meaningful way."  MORE >>

Mercer Letter Asking Senate for Pension Relief (PDF)

"We therefore consider it vital that Congress provide longer-term financial relief to single-employer plan sponsors, and give employers the ability to direct financial resources toward sustaining their businesses and preserving current jobs. ... We urge Congress to give plan sponsors additional relief by: [1] Extending the amortization period ... Continuing interest rate relief beyond 2020."

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Mercer Urges Immediate Funding Relief for DB Plan Sponsors (PDF)

"[We] suggest Congress take immediate action to: [1] Extend the due date for all required pension contributions -- including quarterly payments due as soon as April 15 -- that would otherwise be due during calendar year 2020, until at least the end of the year. [2] Suspend the requirement that certain plans' adjusted funding target attainment percentage (AFTAP) drop by 10% on the first day of the fourth month (April 1 for calendar year plans). [3] Extend the deadline for certain administrative tasks, such as preparing a PBGC 4010 filing (April 15 for employers with calendar-year fiscal years) and mailing the Annual Funding Notice to all participants (April 29 for calendar-year plans)."

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Mercer Comments on Proposed Transparency in Coverage Rules

"Mercer suggests the agencies improve the transparency rules in several ways: [1] Limit the required self-service transparency tool to 'shoppable services' and include quality metrics, not just cost information. [2] Reevaluate the set of services specified in the transparency rule after three years to ensure that transparency is working as intended. [3] Reduce the compliance burden by expanding the special rule for insured plans to provide penalty relief for employers and sponsors with self-funded group health plans if they cannot get the required data to satisfy their obligations under the transparency rules."  MORE >>

Mercer Comment Letter to PBGC on Proposed Regs for Lump Sum Payment Assumptions (PDF)

"[Mercer is] concerned about the effect these changes will have on private sector pension plans still using the pre-1994 PBGC lump sum basis to calculate lump sums (no less than the statutory minimum under IRC Section 417(e)), or to convert an account balance into an annuity."  MORE >>

Mercer Global Pension Buyout Index, October 2016 (PDF)

20 pages. "Based on buy-out statistics collected from insurance companies, the pension risk transfer sales volume at the end of the second quarter of 2016 was just over $2 billion. We expect that data being collected from insurance companies will show the sales at the end of the third quarter of 2016 to be twice that amount given the announcement of the large PPG transaction and increased prevalence of retiree annuity buyouts."  MORE >>

Mercer Spot Survey Finds CEO Pay Ratios to Be Lower Than Expected

"A recent Mercer spot survey of over 100 companies in 12 industries found that the CEO-to-median-employee pay ratio is less than 200:1 at the majority of respondents that have estimated a ratio. These estimates, calculated in preparation for the SEC's pay ratio disclosure rule, are significantly lower than the AFL-CIO's 335:1 average ratio for 2015 frequently cited by the media."  MORE >>

Inside Perspective on the Transamerica-Mercer Deal

"A deal announced [Sept. 25] to transition Mercer's defined contribution (DC) plan administration business to Transamerica's retirement platform will drive the migration of more than 900,000 participants and adds further momentum to a streak of recordkeeper consolidations.... [Sandy McCarthy, Mercer U.S. benefits administration leader, said:] 'We see both sides of the agreement playing out quite nicely. We will continue to invest in our defined benefit [DB] administration and in our health benefit administration business, while Transamerica will continue its own fantastic investment on the DC admin side.' "  MORE >>

Text of Letter from Mercer to U.S. Senate Leaders on PBGC Premiums and Retirement Policy (PDF)

"We believe Congress should undertake a broad policy review of the US retirement system with the overall goal of improving the retirement outcomes for more Americans. The PBGC should be a key area of focus within this broad review, along with other rules that affect the number and coverage of DB plans. Lawmakers should effectively transform the PBGC and retirement rules so they have a more productive impact on DB plans and the agency's own financial position."

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Mercer U.S. Pension Buyout Index, March 2014 (PDF)

"During March, as indicated by the Index, the average cost of purchasing annuities from an insurer increased slightly from 108.4% to 108.6% of the accounting liability. The economic cost of maintaining the liability remained level at 108.7% of the balance sheet liability."  MORE >>

Mercer U.S. Pension Buyout Index, February 2014 (PDF)

"During February ... the average cost of purchasing annuities from an insurer decreased slightly from 108.5% to 108.4% of the accounting liability. The economic cost of maintaining the liability remained level at 108.7% of the balance sheet liability."

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