1. 1 International Mobile Employees Pension Needs and Solutions Rüdiger Blaich, Regional Sales Director, AEGON Global Pensions, D Global HR News Paris, France 8 December 2009

2. 2 CONTENT 1. Introduction: global pension issues 2. Development of mobile workforce 3. Pension needs of mobile workforce 4. Our solution 5. Client cases

3. 3 Introduction

4. 4 Does anybody assume that there is growth in the World? Each day World population increases by 170,000! Ageing population Generation 65 plus in % in 2000 and until 2030 –20 years from now? 6% raising to 12%!

5. 5 Do you know how your mobile workforce will be able to retire? Take the time now to act before you will be forced to do so! How did the number of Expatriates develop over the past 3 years? Increase by 90% over last 3 years 47% of companies increased traditional expats (1-5 yrs) 38 % increased international nomads (due to recent Mercer study 2008/2009)

6. 6 Pensions for local employees in the World Reached the peak right now! Growing World Population in age groups In 40 years: 2.8 billion more people = 170,000 per day that did not die ! It is a worldwide challenge: We die later (live longer) We have fewer children and are getting older!

7. 7 State Pensions still dominate old-age income in Europe World Bank 3-pillar-system Pension system (World Bank model) I. State pension III. Private pension II. Occu- pational pension Source AEGON Global Pensions The challenge: Dependency ratios for 1st pillar are increasing in all countries!

8. 8 Many expatriates dont fulfil minimum conditions in their host or / and home countries. First pillar is much lower than with competitive local workforce! Pension systems for local employees are nowhere sustainable

9. 9 Development of mobile workforce

10. 10 Globalization More People have no more a home location. Local pension provision often unmanageable. Reasons to opt for an International Retirement Plan Recruitment and retention Lack of home/host country provisions Top-up provision for key expats Cost efficiency and governance Source: Mercer, 2008/2009 Benefits Survey for Expatriates and Globally Mobile Employees

11. 11 Location of multinational companies F+UK+D+NL+CH = 55% (80% of Europe based) + US = 87%

12. 12 International assignments in todays world Studies from Mercer, Ernst & Young, PWC have shown: The Number of Mobile Workforce is increasing There is a need for better governance in most companies There is a need for higher Flexibility, Control and Security Pension are the most challenging topic amongst International Human Resources Departments*. 40% of companies finds pension challenging 28% of companies finds pensions very challenging Source: Ernst & Young, 2009, Switzerland, Global Mobility Effectiveness Survey

13. 13 Many individuals have no experience in planning for their retirement and the first pillar provision for retirement pensions is very often very limited. International Nomads need additional pensions! Who is willing to think about income in retirement in 20 or 30 years time? Mobile workers have to concentrate on new environment: culture, language, responsibilities. Limited time for their own issues! So for Expats the challenge is even bigger! It is the need that companies help!

14. 14 Pension needs of mobile workforce

15. 15 International Retirement Plan: for whom and why? For employers that need skilled staff in different places : Multinational companies, International organisations, Non Governmental Organisations No local satisfactory solution in host country No option to keep contributing to home country plans focus now is mainly on long term mobile employees

16. 16 Grouping of personnel Global Nomads (international plan) Permanent Moves (plan host country) Limited duration assignments (plan home country)

17. 17 International Mobile Employees Mobile employees 1. Expatriats 2. Third Country Nationals 3. Foreign nationals not able to participate in domestic schemes Special needs 1. Transfer of assets anytime, multi-currency, multi-lingual 2. Key Personnel, good pension provision (DB or DC), additional employee contribution 3. Flexible, Straightforward and Secure Retirement Provision

18. 18 Our solution

19. 19 Selection criteria – Expat provider The ideal features of an IPP are: 1.Plan design: Flexible, cost-effective and customized to meet the needs of the company and members 2.Administration: Customer service oriented, secure and accessible systems 3.Investment funds: Wide range of international investment funds across asset classes, Open Architecture 4.Trust services: Plan assets separated from company assets (if not using an insured contract) 5.Governance: Effective risk management, documented processes and controls, and clear roles and responsibilities 6.Communication: Easily understood by employees, allowing them to appreciate the benefits offered International pension plans: Selecting a provider Last updated: 5 March 2009 (Mercer)

20. 20 International plan features Multi lingual Multi currency Tax free capital growth Investor protection Flexibility of plan design Open architecture Online support

21. 21 International Retirement Plan Insured, bundled, multi-currency retirement plan Competitively priced Investment solutions 6 risk profiles in 3 currencies Guaranteed fund Investment choice Use an asset manager selected by La Mondiale La Mondiale Europartner platform: over 1,000 funds Governed by Luxembourg legislation Tax-free accumulation of contributions Investor confidentiality, protection and security Online support

22. 22 Leading financial center for mutual funds Tax free growth No withholding tax No tax on capital gains Maximum investor protection Under supervision of the supervisory authority for the insurance sector Commissariat aux Assurances 100% assets deposited with Custodian Bank Professional secrecy a legal requirement EU regulated Why Luxembourg?

23. 23 Online support View the latest available valuation Set & view previous account statement periods See performance of your portfolio View all account transactions Create account documents in Excel or PDF Print transaction confirmation documents Test risk assessment profiling tool On-line active switching foreseen for 2010

24. 24 Online support

25. 25 Risk profiles Life style approach, less risk, more bonds when closer to pension Freedom to switch between profiles Profiles can be tailored

26. 26 Established in Luxembourg 1989 Part of La Mondiale & AEGON insurance groups 6000+ high net worth clients 65 group pension schemes covering 3500 employees 92 multi-lingual staff based in Luxembourg Client servicing teams assigned per client Authorised to transact business in the EU directly or via a trust if policyholder resides outside of EU Transparent charging structure, offering multi-currency investment solutions La Mondiale Europartner

27. 27 Client cases

28. 28 European Commission Michelin ITER BHP Billiton NATIXIS SeaBird Client cases

29. 29 Case study AEGON Global Pensions provided a highly flexible, retirement plan at a cost that was comparable with the companys domestic pension arrangements. Challenge The client is a leading international construction company employing more than 30,000 people worldwide. SolutionBenefits As a global employer, the company wanted to find an effective funded long-term retirement and savings solution for several hundred key expatriate and local national employees. AEGON Global Pensions provided the company with a specially tailored International Retirement Plan, delivered by La Mondiale Europartner in Luxembourg. Highly flexible Secure online access Reduced cost Easier to manage Multilingual support Excellent service

30. 30 Summary

31. 31 Proposition International Retirement Plan Next Practice Benefits: multi-lingual, multi-currency, insured retirement plan International Mobile Employees of MNCs and NGOs Start immediately: Insurance contract, ready and available Flexible platform: Default 6 risk profiles and a Guaranteed Fund in 3 currencies, for major clients selection of over 1.000 funds Solid investment solution: governed by Luxembourg legislation, investor confidentiality, protection and security Grow with the client: plans from 5 members till unlimited Online support: Ready for the future from consultation and illustration purposes till active switching as from 2010.

32. 32 What you should remember: Next Practice HR Directors deal regarding their expatriates on 3 Rs: Recruit Retain Repatriate There is a need to adding two more Rs: Retire Rüdiger ;-) For long–term expatriates you need to implement a pension plan – and if you need help: call me! ;-)

33. 33 Thank you AGP Ruediger.Blaich@aegon.com +49 7141 648 39 80 Erich-Schmid-Str.13 71638 Ludwigsburg Germany This presentation contains general information only and does not constitute a solicitation or offer. No rights can be derived from this presentation. Please be advised that any fees, performance and/or cost indications in this presentation are for information purposes only. AEGON Global Pensions, its members and any of their affiliates or employees do not guarantee, warrant or represent the accuracy or completeness of the information contained in this presentation.