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Discover KPMG Pension Trustee

Services

PEOPLE

TECHNOLOGY

BREADTH

QUALITY KPMG PENSIONS TRUSTEE SERVICES

Why KPMG

KPMG PENSIONS TRUSTEE CREDENTIALS

• A leading provider of pension trustee services

• Over 25 years of market experience

• Fourth largest employer of qualified actuaries in the UK

• In recent years, KPMG has advised 7 of the 10 largest UK private sector pension funds

• Over 100 trustee clients ranging from £5m to £1bn

• Multi-disciplinary offering: actuarial, consultancy, administration, investment, tax, communications, covenant, auditing, assurance

• A team of around 400 pensions professionals

– 60 administrators

– 250 qualified and part-qualified actuaries

– 80 investment consultants

– 20 covenant advisory specialists

• Trustee Services represents over a third of our practice and the work we provide to clients

• ‘Right, on time and first time’ approach to administration

• Scheme Actuaries who make clear recommendations

• Forward-thinking investment advice

• Integrated covenant services

• Real-time scheme information at your fingertips

• Dynamic decision support from KPMG Fusion

2 / Discover KPMG Pension Trustee Services

© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

AWARDS

KPMG Fusion - Best New Technology Solution of the Year

Engaged Investor Awards 2014

Top Quality – Consistently

Integrated Services

Latest Thinking

Technology Driven Efficiency

Strategic Mindset

Real Value For Money

OUR COMMITMENTS

Administration

GET IT RIGHT, ON TIME AND FIRST TIME

Our commitment is to a deliver a high quality, personal administration service.

KPMG has been doing pension administration work for twenty years and we have developed market leading tools, systems and people.

Importantly, we put emphasis on bringing a personal touch to our clients, and their members. Our senior administration team has worked together for many years and has built up strong working relationships and robust processes which means we can deliver the level of quality that we promise. Working closely together for so long, we know each other well. Many of our clients find this beneficial in the way we work with them.

COMMITMENT TO QUALITY

We set challenging service standards, hitting these almost 100% of the time, as shown by the bar chart below. We monitor and report this to our clients regularly.

We design our administration services for our clients’ needs. We have developed a way of working which has been designed around flexibility and providing a cost effective service. We organise how we work in collaboration with clients, striving to deliver an exceptional and trusted service.

KPMG PERFORMANCE AGAINST OUR SERVICE STANDARDS

100

95

90

85

80Nov 2014 Dec 2014 Jan 2015 Feb 2015 Mar 2015 Apr 2015

%

FIVE WAYS WE ACHIEVE HIGH QUALITY ADMINISTRATION

1. A stable, experienced team, based in three national centres of excellence

2. High ser vice standards, which are hit 99% of the time

3. An integrated team who manages the sy stems

4. Extensiv e experience of implementing scheme buy out

5. W ell established quality control processes

High quality scheme administration

Discover KPMG Pension Trustee Services / 3


KPMG Fusion

Across KPMG, technology is transforming the way that we consult with clients. Pensions is no exception. Fusion is KPMG’s pension risk management technology software. Built to be real time, easy to use and market leading.

Fusion has been designed to help ensure that our time is spent delivering high value advice and providing real time information allowing trustees to make the right decisions, faster.

TECHNOLOGY DRIVEN EFFICIENCY



• Fusion aids pension scheme trustees and sponsors in their decision-making responsibilities.

• Fusion enables funding levels to be monitored and analysed in real time at the touch of a button

• Key features of Fusion:

– Instant – real time modelling of both liabilities and assets together enables decisions to be made in meetings – saving valuable time;

– Insightful – model cost and risk impact of solutions, assess opportunities and seize upon them quickly;

– Intuitive – user-friendly, accessible anywhere and intuitive to use;

– Collaborative – helps trustees and sponsors to design, monitor and change a strategy together.

KPMG FUSIONPension Risk Management

Enabling trustees to make the right decisions, faster

Actuarial & Consulting

As your Scheme Actuary, our key role is to co-ordinate the integrated strategic advice. We aim to do this in a very clear and concise way, designed to help trustees to develop a full understanding of issues, guiding them to reach decisions and make increased use of meeting time. We don’t like to sit on the fence and strive to provide clear recommendations.

INTEGRATING YOUR FUNDING ADVICE

At KPMG we provide advice across all three strands of the scheme funding arena: actuarial, investment and covenant. We believe this places us in a unique position to be able to provide truly integrated scheme funding advice. In particular, we are very strongly placed to deliver the joined-up approach envisaged in the Pension Regulator’s latest scheme funding guidance.

Our scheme actuaries work closely with our investment advisors to help ensure that our funding and investment advice delivers a joined-up strategy for trustees.

KPMG is not constrained by house-views and this allows us the flexibility to deliver tailored advice in different situations and helps avoids any unnecessary clashes of approach.

HELPING YOU WITH YOUR LONG-TERM STRATEGY

Our role isn’t just about valuations, certificates and factors – we can help trustees to manage all aspects of their Scheme and can provide strategic advice.

Against a back drop of rising costs for DB pension provision we can provide advice on how to remove surprises and reduce turbulence. We are also able to help trustees avoid unrewarded investment risk, and to manage operational risks.

We believe that the key to developing a successful strategy is firstly to agree the pension objectives (both from a pension scheme and a business perspective), then to set out some specific targets and then to establish a funding and investment framework to support this. Good governance is at the heart of developing a robust strategy.

WE PROVIDE STRATEGIC ADVICE IN ALL KEY AREAS



INTEGRATEDFUNDINGADVICE

COVENANT

INVESTMENTACTUARIAL

FIVE TANGIBLE WAYS OUR APPROACH CAN DELIVER EFFICIENCY WHICH HELPS TO MAKE TRUSTEES’ LIVES EASIER

1.KPMG Fusion enables real time decision making within meetings, helping to reduce fees

2. We use clear and concise English and deliver short, succinct reports

3.We use a secure online portal for storing and sharing client material, called KPMG Central

4. The clock is not ticking when our clients call – we want you to speak to us

5. Our multi-disciplinary team means we can help with all your pensions issues



STRONG RELATIONSHIPS WITH TIMELY, CLEAR COMMUNICATION

Our team includes consultants and technical experts, who strive to ensure that any day-to-day queries are dealt with promptly and accurately, whilst building close relationships with you. We seek to be quick to act on topical issues. For example, following the March 2014 UK budget, where unexpected radical changes to the UK pensions landscape were announced, within one week we had held client webinars, issued a (free) member communication, ran several budget breakfast seminars, and met many of our clients one-to-one to take them through our Budget Toolkit.

We work with our clients to develop an understanding of how they prefer to communicate, and adapt accordingly.

INNOVATION

KPMG is a market leader in providing clients with innovative pension solutions, such as increasing member options and innovative pension financing structures. You will be provided with these new ideas and forward thinking approaches, where they are relevant to you. KPMG Fusion is central to how we consult with our clients.

Investment

Our approach to investment advice is different and has been established based on a clear set of principles. These guiding principles have led us to develop a team and culture that strives to deliver the highest quality of advice in a clear and practical manner.

Ideas

We spend considerable time researching and developing innovative investment solutions for our clients.

All members of our 80 strong team thrive in an environment where everyone contributes to our idea generation which is openly debated and challenged.

Proactivity

We work alongside trustees to deliver pragmatic advice generated through a deep understanding of their objectives and goals.

Our key objective is getting the best investments into our clients’ portfolios and we measure ourselves accordingly.

Our trustee clients lead the way on how they approach pension scheme investment decision making.

Trust

By taking the time to understand how our clients want to work and what matters to them, we can foster trust and build strong, long term relationships.



STRONG GROWTH

The investment team has grown successfully by recruiting from amongst the best talent in the industry. Our client base has expanded rapidly over the past five years primarily through existing client recommendations. We advise funds up to £4bn, with an average trustee client of £200m in size.

We are confident in our advice and are willing to back this very directly by providing our clients with the ability to flex our fee to reflect our performance. The assessment is entirely at our client’s discretion.

SATISFIED CLIENTS

We do not aim to have the most clients but we do aim to give the best advice in the market.

A smooth handover

We understand that trustees may find the prospect of a transition daunting. We aim to make this process seamless for trustees and members.

As part of the handover we include a full data audit using our data analysis software, KLean (see below).

Our tried and tested handover process has been designed to deliver a smooth and effective transition with a focus on capturing all of the historic knowledge and being up and running very quickly. We will agree with you a detailed project plan and share regular updates with you and your existing advisers, so that you are kept fully aware of our progress.

RELIABLE DATA – KLean

• We have developed a market leading data checking tool which is used by all our trustee clients... and other third-party administrators too.

• With reliable scheme data we can be confident that our other services are based on robust calculations.



INTEGRATED SYSTEMS

• We use integrated systems and automated calculations to help reduce delivery time and cost.

• It also reduces the chance of human error creeping into the calculation of member benefits.

Value for money

KPMG aims to deliver real value for money and give clients control over costs without compromising on quality.

FIVE PRACTICAL WAYS KPMG CAN BRING EFFICIENCY AND CONTROL TO COSTS:

1. Deliver the work from one single team who know the client and the Scheme

2. Avoid lengthy debates over fees by giving clarity up front:

– Fixed annual fee for core services

– Pre-agreed hourly rates and budgets for additional work

3. Fusion enables real time decision making within meetings, helping to reduce fees

4. The clock is not ticking when clients call – we encourage our clients to speak to us!

5. KPMG’s multi disciplinary team means we can help with all your pensions issues

FIXED CORE FEES

We work to a fixed fee for all agreed core annual services. We agree the exact scope with clients; a typical scope is set out on page 10 – this is of course flexible for each client.

Fees for any non-core work are agreed in advance of commencing work. Where the scope can be well defined, these are based on fixed fees, or if not, we agree an estimated budget, based on pre-agreed hourly rates.

PRACTICAL EFFICIENCY

Our approach to advising clients is based on us being efficient with our time, helping to provide value for all aspects of our work. We do things a bit differently: Fusion is often used instead of slides; meeting packs are usually issued electronically (paper copies on request); meetings are run more efficiently – therefore taking less time, and potentially requiring fewer meetings per year.

INNOVATIVE, RELEVANT IDEAS

We aim to bring relevant ideas quickly, and work hard initially with clients to ensure governance enables us to move quickly when opportunities arise. The value from this can be very material. We set out on the left some practical examples of how can we bring efficiency and control to costs.

WIDER SERVICES WHICH ARE AVAILABLE AND WHICH COULD BE INCORPORATED INTO THE CORE SERVICE:

• Detailed PPF levy advice and failure score monitoring

• Detailed governance advice

• Covenant monitoring

• Benefit and data audit reviews

• Advice on DC investment strategy and ongoing monitoring



A TYPICAL TRUSTEE CORE SERVICES SCOPE

The table below sets out a typical scope of services that we could include within our core fee. This is flexible and varies for every client. These services are split by the “usual” services (left) plus the extra added value services (right) that we offer.

USUAL CORE SERVICES

Actuarial and consulting

• Appointment as Scheme Actuary

• General updates on topical pensions issues and responses to general queries

• Scheme Actuary preparation for, and attendance at, trustee meetings and provision of advice on matters impacting the Scheme at these meetings

• Production of annual actuarial funding update report

• Maintenance of transfer value basis, and Scheme factors and provision of ad hoc factors if/when required

• Provision of transfer value calculations and other member specific actuarial calculations

• Funding updates will be provided through Fusion

• Review of statutory documents, including PPF levy, scheme return and HMRC reporting

• Ongoing access to and support from your core team

Administration

• Routine ongoing administration

• Operation of Trustee bank account and treasury services

• Operation of pensioner payroll

• Production of Annual Scheme Accounts

Investment

• Appointment of a KPMG investment advisor

• Provision of annual monitoring report

• Attendance of investment advisor at required trustee meetings

• Maintenance of Statement of Investment Principles (‘SIP’)

ADDED VALUE SERVICES

KPMG Fusion Pension Risk Management

+ On line access for all trustees

+ Continuous access to real time funding updates

+ Real time modeling of limitless Scheme scenarios

Strategy workshop

+ Full day strategy workshop upon appointment

+ Develop derisking strategy and set clear objectives

+ Explore all options

Access to wider specialists

+ Provision of KPMG investment team’s Medium Term Views each quarter

+ Access to KPMG governance and audit experts

+ Access to KPMG pensions tax experts

+ Access to our insurance solutions team

+ Access to KPMG’s specialist covenant advisory team

Governance

+ Full data audit on administration handover



YOU WILL ALSO HAVE ACCESS TO SPECIALISTS WITHIN THE WIDER KPMG TEAM WHERE REQUIRED

Client service charter

WHAT WE STRIVE TO DELIVER

ETHOS ACTIONS

Highly effective service delivery

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Emails acknowledged and responded to within 48 hours

Meeting papers provided at least five working days before the meeting

Detailed timetable and plan agreed for major projects

Access to key personnel at all times

Online access to Fusion at trustee meetings

Strong support to the Trustees in managing your Scheme

Strong consultancy support on all key assignments and day-to-day tasks

Fully agreed timetable of what we do and when for all discrete tasks

Agreed valuation timetable

Proactive liaison with Trustees’ other advisors

Information requirements agreed in advance of all assignments

Consistency and continuity of senior team members

Clear communication and clarity on fees

Absolute clarity on fees – non-core fees agreed in advance, including where scope changes

Help in setting annual fee budget

Regular informal dialogue when you need it and included within the core fee

Reports and emails tailored to the requirements of the Scheme

Acting as one team Close liaison of KPMG team on all work, all working together in the same office

Access to other specialists where required

Proactivity, added value and no surprises

Regular updates on emerging pensions issues

Proactive advice and ideas on issues relevant to trustees

Guidance and support

Clear guidance and recommendations

Clear, concise summaries of key issues in verbal and written advice

Informal feedback and sounding board on issues, for example, developments in legislation, your market place and strategic initiatives

Be-spoke training tailored to your needs

Continuous improvement

Constant review of the relationship and identification of areas for development

www.kpmg.com/uk/trusteeservices



The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

OLIVER for KPMG | OM033199A | June 2015

http://www.kpmg.com/uk/trusteeservices

PEOPLEBy balancing the right level of knowledge, experience

and technical skills together with our passion, we provide trustees with the advice to help them make the

big decisions and members with the clarity to make informed choices.

TECHNOLOGYWe utilise technology. This encompasses our online

modelling system, KPMG Fusion, giving trustees access to real time information and our online administration

system, which gives members the ability to run their own retirement scenarios.

BREADTHNot only do we provide the core services needed by

trustees (administration, actuarial, investment and consultancy) we are also able to utilise the breadth of

services offered by a Big 4 firm. This gives trustees invaluable business insights.

QUALITYOverriding all of the above is the commitment to quality

that KPMG brings to everything we do. Nowhere does this matter more than in managing members’ data and

getting their benefits right.

TIME TO CHANGE YOUR ADVISER?

Call the KPMG Trustee Services team today on 0118 373 1369 or visit

www.kpmg.com/uk/trusteeservices

KPMG Pensions

Trustee Services


http://www.kpmg.com/uk/trusteeservices

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