News Archive

" '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 >>

"Throughout 2024, government bond yields increased for 33 of the 43 countries listed. Long term inflation assumptions generally declined or remained relatively stable over 2024.... For ASC 715 reporters, year-on-year changes in expected rates of return assumptions remained fairly stable, ranging from -46 bps to +64 bps Among the 31 countries with funded plans included in the report, 16 showed an overfunded status in 2024."  MORE >>

"Growth in the pension risk transfer (PRT) industry is accelerating, with new research forecasting insurance companies will secure more than $335 billion of liabilities across the U.K. and the U.S. markets over the next three years. But with many insurers now looking at opportunities in both countries, it is vital to recognize the differences between the U.K. and the U.S., particularly when it comes to deferred lives."  MORE >>

"HUB's National Actuarial Team recommends the following trend projections for 2026 budget planning: [1] Rx Only: 10%-12%; [2] Medical & Rx Combined: 8%-10%; [3] Medical Only: 7%-9%; [4] Dental: 4%-5%; [5] Vision: 2%-3%."  MORE >>

"Companies that scale successfully typically: [1] Create a clear global benefits philosophy that allows for local adaptation. [2] Partner with international benefits experts who understand both global and local perspectives. [3] Invest in robust global benefits technology platforms. [4] Benchmark against local market practices regularly. [5] Maintain flexibility to adapt to changing market conditions."  MORE >>

"The IRS recently issued final regulations ... regarding proper elections out of federal income tax withholding for certain qualified plan payments that are not eligible rollover distributions.... Specifically, this guidance is focused on payments made outside the United States ... [and represents] the closing chapter in an area IRS has been working on for over 35 years."  MORE >>

"More global employers are recognizing the significance of incorporating family-building benefits into their global total rewards strategy. These benefits enable employers to support their workforce on their journey through life's stages, while remaining attentive and adaptive to a changing global landscape."  MORE >>

"The regulation specifically addresses withholding obligations for payments to [1] payees with a military or diplomatic post office address; [2] payees with a residence address located within the U.S.; [3] payees with a residence address located outside of the U.S. or who have not provided a residence address; and [4] foreign persons."  MORE >>

"IRS has finalized a regulation clarifying the tax withholding rules for retirement plan payments to recipients located outside of the United States. Individuals residing in the US generally may elect no withholding under Internal Revenue Code Section 3405, but payments sent out of the country are subject to stricter rules. The regulation applies to payments made on or after Jan. 1, 2026[.]"  MORE >>

"The Netherlands’ retirement income system has retained the top spot on the list, with Iceland and Denmark remaining in second and third places, respectively.... Retirement systems around the world are increasingly moving away from defined benefit (DB) plans and shifting to defined contribution (DC) arrangements. The report explores the opportunities and challenges associated with DC plans for both pension plans and individuals."  MORE >>

"To identify which international benefits work for your people, there are three key areas to consider per country: [1] employee benefits that are required by law, [2] benefits that might be expected by your people and [3] benefits that can help you stand out as an employer of choice."  MORE >>

"This year's report projects Middle East and Africa (MEA) to have the highest trend rate of any region at 15.5 percent. Asia-Pacific (APAC) and North America will experience the highest year-over-year trend rate increases at 11.1 percent and 8.8 percent, respectively."  MORE >>

53 pages. "[The authors] study the experience of seven different countries and develop a standard framework for understanding how various factors impact their retirement systems.... [The] goal is to identify the best ideas from the different countries and use these to develop an actionable template for the well-designed retirement system of the future.... [W]hile no retirement system is ideal, many countries have developed interesting solutions to the challenges posed by increasing lifespans, changing working patterns and the decline of traditional DB plans."  MORE >>

"It is very common for U.S. Taxpayers who are considered U.S. Persons for tax purposes to have worked or been employed in a foreign country and accumulated foreign employment retirement/pension over their lifetime -- or possibly invested in a personal retirement fund in a foreign country as a way to supplement their retirement income. Foreign retirement schemes are treated much differently under U.S. tax law than their U.S. retirement plan counterparts."  MORE >>

"[1] Create core values to stand by regardless of location.... [2] Benchmark to understand how far your budget will go ... [3] Know how 'standard' benefits differ from country to country ... [4] Get specialized support when needed "  MORE >>

"Although this survey mainly explores economic assumptions, [it includes] data regarding mortality assumptions, which are receiving closer attention because of increasing longevity.... The year-on-year changes of expected rates of return assumptions have remained fairly stable, ranging from -28 bps to +58 bps."  MORE >>

"One of the preliminary questions that a U.S. Taxpayer must consider in determining how to report a foreign retirement plan -- and which tax forms to file -- is whether or not the retirement plan is considered an employment retirement plan or a personal retirement plan. The U.S. government generally provides better tax treatment for employment-based retirement plans such as a 401-K equivalent than it does for personal retirement plans where the foreigner invests in foreign mutual fund-wrapped 'personal' retirement plans."  MORE >>

"Globally the most prevalent minimum benefit standards companies currently offer are employee assistance programs and life insurance (73 percent), maternity leave (70 percent), and paternity leave (69 percent).... Globally, one-in-three multinationals are currently drafting and articulating their global benefits strategy and reviewing these annually.... Fifty nine percent of organizations surveyed say they are capturing the employee voice to guide strategic priorities."

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"Multinational companies are increasingly looking at their global employee benefit programs around the world to see how they can bring more value to employees support diversity, equity and inclusion (DEI) and other global initiatives; and save costs around the world. Multinational pooling, captive financing and other cross-border approaches can all support these goals."

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"International Pension Plans (IPPs) and International Savings Plans (ISPs) are used by multinational employers to provide retirement or savings benefits.... 142 IPPs and ISPs were established over the last five years, with the highest concentration in banking and finance accounting for some 15% of these plans. Other sectors attracting significant interest include oil and gas (12%), non-profit organizations (11%) and engineering and power (11%). Most are described as global (Figure 1), accommodating members from diverse geographies and nationalities"

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"Here are some ways multinationals can navigate compensation and benefit challenges in their foreign operations: [1] Employment shell selection ... [2] Package development ... [3] Overcoming lack of critical mass ... [4] Diverse employee benefits ... [5] Flexible design and delivery ... [6] Global vendor networks."

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"This White Paper highlights some of the principal annual or quarterly reporting requirements for employee stock plans that multinational companies most commonly encounter when offering these programs to their employees in selected jurisdictions worldwide. A chart summarizing these items appears at the end of [the paper]."

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19 pages. Authored by experts from eight jurisdictions, this paper navigates the complexities of workplace policies and includes detailed examinations of regulations in Chile, Colombia, Czech Republic, Hungary, Italy, Uganda, and Delaware and Massachusetts in the United States.

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"[SEC] Rule 10D-1 allows for only three narrow exceptions to the mandatory recovery requirement where recovery is considered impractical: [1] the direct cost of recovery would exceed the amount of recovery, [2] the recovery would violate home country law and additional conditions are met, and [3] potential disqualification of tax-qualified retirement plans. This Legal Update discusses the application of the first two exceptions for countries that are incorporated or have executives working in foreign jurisdictions where the enforcement of the policy will require application of local law in such foreign country."

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"A significant majority of multinational employers provide tailored employee benefits and related services to [internationally mobile employees] as a key element of a competitive benefit package. While some employers still rely on home and/or host country plans, offering truly global programs has numerous advantages."

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