1. Improving the standard of pensions administration in the UK Pension Administration Standards Association Professional Pensions Show 2012 4 th October 2012 Kim Gubler – Chair of PASA Standards Committee Fergus Clarke – Chair of PASA Accreditation Committee Improving the standard of pensions administration in the UK 1

2. Today’s objectives PASA position - background and current PASA Standards and their rationale explained PASA Accreditation – what it means PASA engaging with more pension schemes PASA ENCOURAGING YOU TO BECOME INVOLVED! 2

3. Improving the standard of pensions administration in the UK About PASA A Community Interest Company Independent body which has three core activities: 1.Defining good standards of pensions administration 2.Publishing guidance to support the standards 3.Establishing an independent Accreditation process to assess and recognise the achievement of good administration standards WORKING WITH KEY STAKEHOLDERS TO ENSURE ADMINISTRATION STANDARDS MEET THE NEEDS OF PEOPLE WHO DEPEND ON THEM 3

4. Improving the standard of pensions administration in the UK Why PASA? tPR is focused on Good Administration poor administration is a concern for all customer expectation is higher administration needs to improve – its image & delivery PASA believes a unified industry voice and common standards is a must DEMAND FROM REGULATORS, TRUSTEES, MEMBERS AND SPONSORS FOR EVIDENCE OF ADMINISTRATION SERVICE QUALITY ADDRESSED 4

5. Improving the standard of pensions administration in the UK Who is involved? Margaret Snowdon – Lucida (Chair) Karen McKenzie – KPMG (Hon. Secretary) Mark Adamson – JLT Karen Bennett – ABF Phil Bradish – The Pensions Trust Phil Bretnall – HSBC John Broker – ITM Fergus Clarke – Aon Hewitt Sara Cook – Mercer Peter Dyer – Hymans Robertson Kim Gubler – Kim Gubler Consulting John Simmonds – CEM Benchmarking Debra Soper – Pearson Margaret Snowdon – Lucida (Chair) Karen McKenzie – KPMG (Hon. Secretary) Mark Adamson – JLT Karen Bennett – ABF Phil Bradish – The Pensions Trust Phil Bretnall – HSBC John Broker – ITM Fergus Clarke – Aon Hewitt Sara Cook – Mercer Peter Dyer – Hymans Robertson Kim Gubler – Kim Gubler Consulting John Simmonds – CEM Benchmarking Debra Soper – Pearson The Board (elected by members) 5

6. Improving the standard of pensions administration in the UK What are the Standards? Outcomes based Designed to flexible to different situations – common sense approach Recognition each scheme is at a different ‘starting point’ Designed to stretch - but not unobtainable Designed to be relevant to DB and DC schemes POTENTIAL TO STRENGTHEN OVER TIME

7. Improving the standard of pensions administration in the UK Standards Focused on five key areas: Stakeholder relationships Measurement and reporting Operational risk Data People 7

8. Improving the standard of pensions administration in the UK Why these Standards? key items PASA believes underpin good administration tested with members and wider industry through consultation – represent the views of a broad group not prescriptive – how these are achieved is up to you GUIDANCE AND ACCESS TO INDUSTRY EXPERTS TO HELP AND GUIDE

9. Improving the standard of pensions administration in the UK What are we accrediting? Compliance with Standards and their principles WE ARE NOT ACCREDITING OPERATIONAL APPROACH OR METHODOLOGY – THE OUTCOME IS MORE IMPORTANT THAN THE HOW... 9

10. Improving the standard of pensions administration in the UK Accreditation – Timelines / Stages Interim Accreditation Membership Full Accreditation Reassessment join the debate! no obligation to commit to seeking accreditation enjoy the benefits of being a member of PASA apply for accreditation – you are ‘on the journey’ maximum of 18 months to obtain full accreditation entitled to use the ‘Interim Accreditation’ designation during the period assessment against the standards for full accreditation successful application = congratulations! You can now use the PASA ‘Fully Accredited’ designation Reassessment: every two years or significant event: 10

11. Improving the standard of pensions administration in the UK Full Accreditation – Process Desk Based Review Application Site Visit Report / Award written application & supporting documentation assessor review & progress to site visit stage approved or notification application doesn’t meet the standard – and reasons why site visit by accreditation provider evidence of standards sought relevant staff interviewed accreditation OR reasons for failure identification of areas for remedial action accreditation approved & recognition award available to use 11

12. Improving the standard of pensions administration in the UK What’s in it for your scheme? accreditation demonstrates commitment to provision of first-rate administration, leading to: – Quality assurance for members, employers and trustees – Measurement of administration performance against external benchmarks accredited admin equals better service, record keeping and governance with potential for: – PPF levy reduction? – Trustee Liability Insurance reduction? accreditation shows high service performance in comparison to peer group ACCREDITATION GIVES ASSURANCE THAT ADMINISTRATION IS IN GOOD SHAPE AND DIRECTLY IMPACTS ON MEMBER OUTCOMES

13. Improving the standard of pensions administration in the UK Why Join PASA? Network of like minded administration specialists all striving to improve standards in administration Access to additional training partners Opportunity to be part of influential organisation helping to shape the future of the pensions industry Be part of lobby group specific to administration services Access to industry experts INFLUENCE YOUR FUTURE! 13

14. Improving the standard of pensions administration in the UK 14 www.pasa-uk.com