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© 2017 LifeSight | Willis Towers Watson. All rights reserved. Proprietary and Confidential. For LifeSight | Willis Towers ...
willistowerswatson.com
BACKGROUND
In this example, the client has a stand-alone pension fund arranged as a defined contrib...
willistowerswatson.com
TAILOR-MADE APPROACH
Exploring solutions for client cost, management, risk control and communicatio...
willistowerswatson.com
IMPLEMENTATION (3-4 months)
6-step transition plan for seperate account.
4
© 2017 LifeSight | Willi...
willistowerswatson.com
ACHIEVEMENTS
5
© 2017 LifeSight | Willis Towers Watson. All rights reserved. Proprietary and Confid...
willistowerswatson.com 6
© 2017 LifeSight | Willis Towers Watson. All rights reserved. Proprietary and Confidential. For L...
willistowerswatson.com 7
© 2017 LifeSight | Willis Towers Watson. All rights reserved. Proprietary and Confidential. For L...
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LifeSight Belgium Client Case

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Keep pension plans attractive for employees with optimised return on investment.

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LifeSight Belgium Client Case

  1. 1. © 2017 LifeSight | Willis Towers Watson. All rights reserved. Proprietary and Confidential. For LifeSight | Willis Towers Watson and LifeSight | Willis Towers Watson client use only. This document shows a simplified example case. Nothing in this material should be construed as providing a guarantee or entitlement. No decision should be taken based on this document without consulting Willis Towers Watson and after receiving detailed and individualised information. LifeSight is Willis Towers Watson’s Belgian multi-employer pension fund offering tailor-made solutions for DC and DB pensions in terms of management and investments. It is the new alternative to group insurance and stand-alone pension funds. Client Case Study Example
  2. 2. willistowerswatson.com BACKGROUND In this example, the client has a stand-alone pension fund arranged as a defined contribution (DC) plan. The client has two closed pension plans including a defined benefit (DB) plan. 2 © 2017 LifeSight | Willis Towers Watson. All rights reserved. Proprietary and Confidential. For LifeSight | Willis Towers Watson and LifeSight | Willis Towers Watson client use only. This document shows a simplified example case. Nothing in this material should be construed as providing a guarantee or entitlement. No decision should be taken based on this document without consulting Willis Towers Watson and after receiving detailed and individualised information. The client wishes to outsource more of its pension services and at the same time maintain control of its costs and risk. At the same time the pension plan has to remain attractive for employees with possibility to introduce more flexibility in the future. LifeSight offers a solution. Current situation: • 300 actives and 600 deferreds • One open DC plan and two closed plans • Stand-alone pension fund • EUR 90m in assets • Individual choice between mixed fund, defensive fund, and capital protection fund • Invested with two investment managers • Competitiveness of pension plan to employees is very important • Reduced availability of local HR resources to manage pension fund and to act as front-office to plan members Needs for improvement: • Keep pension plan attractive for employees providing solid pension savings with solid investment returns (with low investment fees), strong admin services (help desk), and informative communication with online pension tool. Keep option open to offer more flexibility in future, e.g. cafeteria plan with spendable budget for retirement, death and disability benefits. • Optimise and control costs (external and internal). Cost spread over smaller active population with larger inactive population. • Reduce management and governance burden of managing pension fund for local management (optimise use of local company resources to core activities). Local management is looking for ways to spend less time on managing the pension fund. • Maintain sufficient risk control as the complexity of managing a pension fund is growing. • Keep decision power and flexibility concerning e.g. pension plan management, investments and communication to employees.
  3. 3. willistowerswatson.com TAILOR-MADE APPROACH Exploring solutions for client cost, management, risk control and communication challenges. 3 © 2017 LifeSight | Willis Towers Watson. All rights reserved. Proprietary and Confidential. For LifeSight | Willis Towers Watson and LifeSight | Willis Towers Watson client use only. This document shows a simplified example case. Nothing in this material should be construed as providing a guarantee or entitlement. No decision should be taken based on this document without consulting Willis Towers Watson and after receiving detailed and individualised information. The client currently offers several plans to employees, including DB and DC plans. We suggest to set up a separate account. • Optimisation of pension savings: optimised return with access to professional investment managers with controlled negotiated investment fees. • Help Desk (3 languages) to assist employer and employees with pensions and benefits questions. • Access to online tool to consult evolution of pension savings, make investment and flex choices and consult other information. • Keeps options open to offer more flexibility in the future, e.g. cafeteria plan with spendable budget for retirement, death and disability benefits. Keep pension plan attractive for employees • Management can dedicate its resources to core activities instead of managing the pension fund. • Much of the governance burden of managing the pension fund is taken care of by the management of LifeSight and thus the cost is spread. Benefit from low negotiated fees with external providers for LifeSight. Reduce management and governance burden & control cost   • LifeSight offers experienced pension fund management and service providers. Keeping up with compliance requirements is coordinated by LifeSight management. Maintain risk control • Decisions regarding client-specific pension aspects can be taken by the Pensions Committee of the separate account, consisting of delegates of the company. Amongst the possible agenda items feature choice of investment manager, asset allocation, employee communication, etc. Keep decision power  
  4. 4. willistowerswatson.com IMPLEMENTATION (3-4 months) 6-step transition plan for seperate account. 4 © 2017 LifeSight | Willis Towers Watson. All rights reserved. Proprietary and Confidential. For LifeSight | Willis Towers Watson and LifeSight | Willis Towers Watson client use only. This document shows a simplified example case. Nothing in this material should be construed as providing a guarantee or entitlement. No decision should be taken based on this document without consulting Willis Towers Watson and after receiving detailed and individualised information. The transition plan is developed and fine-tuned in cooperation with the client depending on the needs and the level of support required. Decision on funding vehicle and approach. Customisation of plan documents to the company’s situation (plan rules, participation act, housekeeping rules of the pensions committee, statement of investments principles, … ). Liaison with providers such as investment manager, re-insurance company, … . Approval and information procedures: • Advice works council; • Approval current pension fund and LifeSight; • Information to employees and access to online tool. Set-up of pension administration and investment process. Coordination of transfer of assets to LifeSight and liquidation of current stand-alone pension fund.
  5. 5. willistowerswatson.com ACHIEVEMENTS 5 © 2017 LifeSight | Willis Towers Watson. All rights reserved. Proprietary and Confidential. For LifeSight | Willis Towers Watson and LifeSight | Willis Towers Watson client use only. This document shows a simplified example case. Nothing in this material should be construed as providing a guarantee or entitlement. No decision should be taken based on this document without consulting Willis Towers Watson and after receiving detailed and individualised information. The separate account is suitable for any plan type and enables maximum customisation, investment and funding flexibility. External management cost is optimised and controlled. Optimised net return on assets (with controlled investment fees) support good investment returns. The pension plan remains attractive to employees with expert Help Desk support and an optimised online communication tool. Reduced management and governance burden of managing the pension fund allows to control risk and focus local resources on core activities.
  6. 6. willistowerswatson.com 6 © 2017 LifeSight | Willis Towers Watson. All rights reserved. Proprietary and Confidential. For LifeSight | Willis Towers Watson and LifeSight | Willis Towers Watson client use only. This document shows a simplified example case. Nothing in this material should be construed as providing a guarantee or entitlement. No decision should be taken based on this document without consulting Willis Towers Watson and after receiving detailed and individualised information. ABOUT LIFESIGHT Key features • LifeSight is Willis Towers Watson’s Belgian multi-employer pension fund • Offering tailor-made solutions for DC and DB pensions in terms of management and investments • DC Main Fund for standard solution (DC plan, default investment manager, choice of asset allocation) • Separate account for tailor-made solution (DB/DC plan, investment manager, asset allocation, individual investment choice and/or cafeteria plan possible, …..) • Optimised communication to employees enhancing appreciation of benefit package and comfort feeling • It is the new alternative to group insurance and stand alone pension funds CONTACT US This document shows a simplified example case. Nothing in this material should be construed as providing a guarantee or entitlement. No decision should be taken based on this document without consulting Willis Towers Watson and after receiving detailed and individualised information.
  7. 7. willistowerswatson.com 7 © 2017 LifeSight | Willis Towers Watson. All rights reserved. Proprietary and Confidential. For LifeSight | Willis Towers Watson and LifeSight | Willis Towers Watson client use only. This document shows a simplified example case. Nothing in this material should be construed as providing a guarantee or entitlement. No decision should be taken based on this document without consulting Willis Towers Watson and after receiving detailed and individualised information. ABOUT LIFESIGHT CONTACT US Key advantages Better return and optimised costs through optimised and flexible investments and funding Enhance comfort through better communication Lower governance burden but keep control This document shows a simplified example case. Nothing in this material should be construed as providing a guarantee or entitlement. No decision should be taken based on this document without consulting Willis Towers Watson and after receiving detailed and individualised information. Visit the LifeSight Belgium web site

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