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Breaking Barriers: The Strategic Move Towards Principles-Based Pension Management

May 18, 2021

Executive Summary

Principles-based pension management is revolutionizing our industry. Pension Plans need to be more holistic and transparent, drive up engagement and strategic value for organizations, to offer employees competitive pension benefits without over-burdening HR. In this paper, we explore the ways in which a principles-based approach can help build successful pension strategies for organizations, looking at the difference between principles-based plans and those that are based on standard pension rules. Starting with principles builds a better pension system from the ground up, and by aiming for principles tied to four objectives linked to adequacy, security, efficiency and sustainability, all pension managers can move their organizations in an innovative and strategic direction.

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