Pension Administration Standards Association

1. Pension Administration Standards Association Professional Pensions Show 2012 4th 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

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!

3. About PASA • A Community Interest Company • Independent body which has three core activities: • Defining good standards of pensions administration • Publishing guidance to support the standards • 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

4. 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

5. Who is involved? The Board (elected by members) 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

6. 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. Standards Focused on five key areas: • Stakeholder relationships • Measurement and reporting • Operational risk • Data • People

8. 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. 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. . .

10. Accreditation – Timelines / Stages • join the debate! • no obligation to commit to seeking accreditation • enjoy the benefits of being a member of PASA Membership 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 Interim Accreditation assessment against the standards for full accreditation Full Accreditation • successful application = congratulations! You can now use the PASA ‘Fully Accredited’ designation • Reassessment: • every two years or • significant event: Reassessment

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

12. 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: PPFlevy 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. 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!

14. www.pasa-uk.com