1. watsonwyatt.com CEIOPS Conference 2007 Employer opportunities from IORP directive Christopher Mayo 20 November 2007

2. Copyright © Watson Wyatt Worldwide. All rights reserved 2 View from the summit Employer- opportunity to benefit from:  Simplified governance  Single regulatory regime  Maximise purchasing power/economies of scale  Lower cost of adding plans for new EU territories  Better solution for small populations  Selecting home state based on:  Labour and social laws  Minimum funding  Supervisory requirements

3. Copyright © Watson Wyatt Worldwide. All rights reserved 3 How to get there – direct “pan European” route Employer takes direct route to the summit:  High cost for research:  Need to explore each regulatory aspect  Need to test tax treatment  Risk of failure or surprise pitfalls  No first mover advantage for a corporate  Need to build administration platforms  Need to build governance structure

4. Copyright © Watson Wyatt Worldwide. All rights reserved 4 How to (almost) get there –indirect route Employer takes it in stages:  Pursues opportunities that cover all employees  Asset pooling  Consistent governance philosophy  Corporate plan design policy  Commonality of providers  Multinational pooling  Consistent administration platform