Allianz embarked on a pension review program in 2014 with the objective of ensuring that the company remained in a position to provide a sustainable and competitive future pension offering for our employees, with the desired outcome of benefiting both the company and the employees alike.

1. CASE STUDY

2. Allianz embarked on a pension review program in 2014 with the objective to ensure that the company
remained in a position to provide a sustainable and competitive future pension offering for our
employees, with the desired outcome to benefit both the company and the employees alike.
Our Defined Benefit (DB) pension scheme was closed to future accrual at the end of 2015 with all
employees now saving for retirement via the company Defined Contribution (DC) scheme. However, the
liabilities associated with the DB scheme were still significant and therefore significant risks remained
for employees and the company. It was important that Allianz consider how best to communicate the
prevailing risks and provide an alternative for our employees, which would protect them and their
families against any future erosion of their retirement benefits. We were also concerned with ensuring
that Allianz did not sustain any financial or reputational risk during the process and at all times we
were vigilant and cognisant of the potential risks associated with the move.
After considering all aspects of this initiative we decided to progress with the plan and chose Acuvest
to partner with us to assist with the design, execution and implementation of our refocused pension
strategy. Our decision to work with Acuvest stemmed from their reputation of being both professional
and independent with a proven record of working with all stakeholders at every level in the organisation.
We needed to be able to trust our consultant client partners, to have at all times, the best interests of
Allianz and our employees at the forefront of their actions.
The Client Challenge
Allianz move to a sustainable and competitive future pensions
offering with a people centric Enhanced Transfer Value offer
“Acuvest take a very forward-looking view at pension provision. Pension provision is put in the context
of retirement savings for the end user. Acuvest has an ability to bridge the gap between technical
pension products and the person who is dependent on being able to retire. That is a strong proposition,
treating people as customers and acknowledging their needs in developing their solutions.”
Ursula Murphy,
Chief People Officer, Allianz PLC.

3. Working with Acuvest helped Allianz to articulate our future vision for retirement savings and to
evaluate our strategic options to make the move from our current operating model towards a more
sustainable and secure future.
Aspartofthenextstepsinthatjourney,Acuvestdevisedacompellingbusinesscasefortheimplementation
of what has now materialised into our innovative Enhanced Transfer Value (ETV) offer for both existing
and previous employees. Driven by the principles of being member centric and offering real choice,
the purpose of the ETV offer was not only to mitigate against future DB uncertainty but also to offer
alternative flexible options, which could be easily communicated and would provide employees the
comfort of having both choice and control over their own retirement savings.
Project management for the ETV offer involved Acuvest setting up and running a Project Board with
all stakeholders and decision makers represented. This strong governance framework provided clear
reporting structures, roles and responsibilities and a forum in which key decisions could be taken
efficiently against Guiding Principles. Reporting to the Chief People Officer and Chief Financial Officer
jointly, this forum allowed the Allianz Board to understand the offer and its consequent organisational
impact and to proactively work towards securing the necessary funding to support the business case.
Acuvest proposed at the outset of the project that the ETV offer itself should be created and built as
an individual offer. The individualised offer was constructed by the Acuvest data team to ensure that
not only was the offer fair and equitable to all, but that it also contained a series of clear and concise
messages that were applicable to all. Any unnecessary complexity in the design could have negatively
influenced the take up rate of the new proposal.
Acuvest worked collaboratively with our Allianz team, and they contributed to the implementation of
the ensuing communications strategy. Using existing channels and proven formats, the joint team was
tasked from the outset with the role of keeping employees at the heart of every communication, from the
creation of the information guides to the selection of appropriate representatives with the pre-requisite
inter-personal skills to successfully and skilfully deliver the face-to-face presentations to our employees.
A fundamental objective of the communications strategy was that everyone involved in the project, at a
minimum should understand his or her own position. To facilitate the absorption of all the information
contained in the proposals, Acuvest created sample personas which employees could relate their
situation to. Regularly updated Q&A briefings and access for employees to help lines was also provided.
Acuvest delivered all the current and past employee presentations and worked collaboratively with
third parties to ensure messages remained consistent throughout the process.
Our Solution
“The ETV was always going to be about people. The solution had to be people centric, easy to relate
and, more importantly, easy to understand. As this is something, which is so important and personal
to our employees, we wanted everyone involved to be fully informed with all relevant information
to enable them to take their next steps and feel ready to take
appropriate action.”

4. The take up of the ETV offer amongst present and past employees far exceeded our established business
case expectations. This in turn significantly reduced the DB scheme’s accounting liabilities, boosted the
net asset position of the company and reduced the company’s capital requirement.
The overall project was delivered on time and within set risk and budget parameters. Management
time and focus can now firmly concentrate on the next phase of our pension journey to deliver a best
in class DC pension scheme while continuing to ensure we have robust governance structures in place
to manage all remaining DB assets.
Having successfully secured over 97% engagement in the communications process amongst existing
employees, the communications objectives of the offer were also surpassed. The aspiration to ensure
that everyone understood their own pension position and were offered genuine choices to control
their own retirement savings was achieved through the process.
“Acuvest’s willingness to partner with Allianz and our pension providers, and to take appropriate
ownership and responsibility for making the right things happen was in my opinion a significant
factor in the ultimate success of the ETV offer.”
Ursula Murphy
Chief People Officer, Allianz PLC.
The Results
CONTACT
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