US – Marsh & McLennan is to combine the defined contribution administration business of its Putnam Investments and Mercer HR Outsourcing subsidiaries, with Putnam continuing to manage client assets.
It said in a statement that the new organization would create a “unified, full-service global leader in human resources outsourcing”.
The unit, with a combined annual revenues of around 500 million dollars worldwide, will be overseen by Brian Storms, the new vice chairman of Mercer HR Consulting. Dave Carlson will head the US operation.
It said: “With a broader range of people, products and services, Mercer HR Outsourcing will offer its clients a total global human resources outsourcing solution - including defined benefit administration, defined contribution administration, health and group administration, and other human resources services.”
"We see this combination as an important opportunity to serve clients better in the changing and growing benefits and human resources market," said MMC chairman and chief executive Jeffrey Greenberg.
Ed Haldeman, Putnam’s chief executive, said: "Putnam will continue to manage investments of our plan participants as well as investments and servicing of all our other institutional and retail clients and advisors.” He said the reorganisation has been planned for more than a year.
MMC said there would be no immediate change to client accounts or business locations.