Paul Colley, FCIPD Market Insight Manager Zurich International Life International Employee Benefits Seminar Marcliffe

1. 1 Paul Colley, FCIPD Market Insight Manager Zurich International Life International Employee Benefits Seminar Marcliffe Hotel, Aberdeen 28 April 2010

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3. 3 What is Corporate Responsibility? Corporate Responsibility (CR) is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. At times can be a bit devalued by those who only look at part of the picture � target for cynicism. Not about charity for charity�s sake. But contract between the various parties in business But as definition shows � the perfect �win-win� example Good business � because its about managing risks. . At times can be a bit devalued by those who only look at part of the picture � target for cynicism. Not about charity for charity�s sake. But contract between the various parties in business But as definition shows � the perfect �win-win� example Good business � because its about managing risks. .

4. 4 CR risks Risk is dual edged, there is generally a possible upside and a possible downside, so risk needs to be managed. In CR terms the impact is most likely to be one or all of: Reputational Financial Health and welfare When this partnership fails � bad things tend to happen Breaking the contract has the risk of being the main item on the news � customers then choose to leave. Prospective employees decide that maybe you�re not the right employer for them. �and it could be argued that this is the best hope. Bad companies risk fines for failure, punitive taxes to balance the negative outcomes on society � e.g fat taxes, compliance costs. Society, through government, may then stop behaviour � either on companies or individuals. Bank bonuses a wonderful example. In the extreme cases people get injured or die. When this partnership fails � bad things tend to happen Breaking the contract has the risk of being the main item on the news � customers then choose to leave. Prospective employees decide that maybe you�re not the right employer for them. �and it could be argued that this is the best hope. Bad companies risk fines for failure, punitive taxes to balance the negative outcomes on society � e.g fat taxes, compliance costs. Society, through government, may then stop behaviour � either on companies or individuals. Bank bonuses a wonderful example. In the extreme cases people get injured or die.

5. 5 Enron case study � when CR goes wrong ENRON � one of the biggest financial scandals in US history Paved the way for Sarbanes Oxley New tax legislation in the US around deferred benefits � 409a The demise of Arthur Anderson (Enron�s auditors) Over USD1 billion wiped off employee retirement funds 4,000 people lost their jobs Company left USD31.8 billion debts �. And it does go wrong. Killed not one but two companies. Contract between company and society broken (investors, governments) All business engaging these sort of practices were targeted. Contract between company and employer also broke down � all lost their jobs, most lot their 401k.s Although this was solid corruption, recklessness is no better. I could put up slide after slide on banks. Most did nothing technically wrong � but inappropriate remuneration and benefit structures have caused problems � and the impact is that society imposes its will on the business and the employees (through restrictions on bonuses etc)�. And it does go wrong. Killed not one but two companies. Contract between company and society broken (investors, governments) All business engaging these sort of practices were targeted. Contract between company and employer also broke down � all lost their jobs, most lot their 401k.s Although this was solid corruption, recklessness is no better. I could put up slide after slide on banks. Most did nothing technically wrong � but inappropriate remuneration and benefit structures have caused problems � and the impact is that society imposes its will on the business and the employees (through restrictions on bonuses etc)

6. 6 CR and HR Key reason for provision of benefits is to attract, retain and reward our company�s most valuable asset Contributes significantly to job satisfaction Improved engagement leads to higher productivity Lower turnover rates Allowing employees participation in the design and delivery of CR initiatives increases loyalty and is especially pertinent during tough market conditions � and for the company it is important. No need to explain to a room full of HR and benefit experts the importance of benefit strattegy in attraction and retention of staff. Despite the economic turndown � there is still a shortage of key talent. CR has a role. People stay with companies whose values line up. Dutch based organisation Covalence listing of ethics. Top companies can win (Google, IBM). Those down the list (Ryanair, Exxon) struggle. Important element in bringing CR elements into Employee Benefits is staff involvement Elements of CR are variable � by individual and by territory � so one size fits all doesn�t work. In particular , flexibility tends to be a key � a point we�ll return to.� and for the company it is important. No need to explain to a room full of HR and benefit experts the importance of benefit strattegy in attraction and retention of staff. Despite the economic turndown � there is still a shortage of key talent. CR has a role. People stay with companies whose values line up. Dutch based organisation Covalence listing of ethics. Top companies can win (Google, IBM). Those down the list (Ryanair, Exxon) struggle. Important element in bringing CR elements into Employee Benefits is staff involvement Elements of CR are variable � by individual and by territory � so one size fits all doesn�t work. In particular , flexibility tends to be a key � a point we�ll return to.

7. 7 CR stakeholders � and that�s maybe one pf the challenges in Corporate Responsibility Various stakeholders. Sometimes it is perceived CR only between the company and the outside world. But employees are that akk important part: Could be argued greatest societal benefit is the provision of employment to the population. Benefit strategy also enables society to function � the old and infirm have pensions, the sick have care. And for balance of presentation I will focus on that bond between company and employee � the heart of any benefit strategy.. � and that�s maybe one pf the challenges in Corporate Responsibility Various stakeholders. Sometimes it is perceived CR only between the company and the outside world. But employees are that akk important part: Could be argued greatest societal benefit is the provision of employment to the population. Benefit strategy also enables society to function � the old and infirm have pensions, the sick have care. And for balance of presentation I will focus on that bond between company and employee � the heart of any benefit strategy..

8. 8 CR employee benefit Any employee benefit that has a positive impact on the individual the business and society at large Perhaps best to start with a definition. In the academic sense - not entirely sure this has ever been well defined. This is courtesy of work Tom and some of my colleagues have been doing � and encapsulates world well. Benefit strategy that has a positive impact on all three key stakeholders. In effect these are �guilt free� � getting them isn�t a negative to others In particular important to emphasise the company also gains � and Tom will share some of the benefits IHG have gained. Perhaps best to start with a definition. In the academic sense - not entirely sure this has ever been well defined. This is courtesy of work Tom and some of my colleagues have been doing � and encapsulates world well. Benefit strategy that has a positive impact on all three key stakeholders. In effect these are �guilt free� � getting them isn�t a negative to others In particular important to emphasise the company also gains � and Tom will share some of the benefits IHG have gained.

9. 9 Flexible work/lifestyle benefits Flexible holidays Flexible working Payroll giving Charitable donations Bus pass/train ticket provision Cycle to work schemes Employee assistance programmes Childcare vouchers Individual carbon offsetting I won�t go into detail as the IHG experience provides this in real life But useful test � what�s happening in real world Survey However, these benefits show how a benefits strategy can link to corporate responsibility However, flexibility allows employees values to be reflected � or not be if this is the case � particularly important in diverse workforces. Part of a virtuous circle Importantly costs tend to be comparatively low and engagement tends to be high Engagement leads to value for the individual and the business.I won�t go into detail as the IHG experience provides this in real life But useful test � what�s happening in real world Survey However, these benefits show how a benefits strategy can link to corporate responsibility However, flexibility allows employees values to be reflected � or not be if this is the case � particularly important in diverse workforces. Part of a virtuous circle Importantly costs tend to be comparatively low and engagement tends to be high Engagement leads to value for the individual and the business.

10. 10 Retirement benefits Unfortunately not all benefits can claim this level of cost effective engagement. Spend a bit ion time on retirement benefits. Common compliant is that employees juts don�t value the ever increasing costs. But from a corporate responsibility viewpoint very important. Individual gains. Society gains. During decumulation phase it provides a safety net against poverty that otherwise would need to be borne by taxpayer. During accumulation phase the power of pension funds as the leading investors � can encourage good behaviours, can punish bad behaviours. Engagement has possibly been low because of DB being a black box. Limited options for trustees or other governance vehicles to act in an ethiucal way (National Coal Board case) � or cluster bombs in Netherlands. However these touch points so people can be galvanised. DC gives a new opportunity. Unfortunately not all benefits can claim this level of cost effective engagement. Spend a bit ion time on retirement benefits. Common compliant is that employees juts don�t value the ever increasing costs. But from a corporate responsibility viewpoint very important. Individual gains. Society gains. During decumulation phase it provides a safety net against poverty that otherwise would need to be borne by taxpayer. During accumulation phase the power of pension funds as the leading investors � can encourage good behaviours, can punish bad behaviours. Engagement has possibly been low because of DB being a black box. Limited options for trustees or other governance vehicles to act in an ethiucal way (National Coal Board case) � or cluster bombs in Netherlands. However these touch points so people can be galvanised. DC gives a new opportunity.

11. 11 CR retirement benefits in a DC world Defined Contribution enables choice and flexibility: Ability to focus on the how of fund choice, not just the who and the what Growing subset of SRI vehicles Growing evidence that there is not a performance lag Focus less on �sin� and more on �current ethical concerns� Challenges: Communication and trust Economies of scale Administration As well as passing elements of risk to the individual, DC does enable greater choice. Can focus on the How � not just who (which can be influenced by marketing) or what (too basic). �Experts in Responsible Investment Solutions� 2009 Survey shows less about �avoiding sin� and more about positive approaches (green, renewable energy). Challenges Unlikely current fund manager has all the skills � therefore a spread of investment managers key � time for asset aggregators and gateways Economies of scale � but supported by growing trends to see single pools of global assets. Communication need still there � but perhaps more attentive audience -More funds mean more admin, more switching � a solid admin partner is key But speculation DC is the next frontier for the SRI space.As well as passing elements of risk to the individual, DC does enable greater choice. Can focus on the How � not just who (which can be influenced by marketing) or what (too basic). �Experts in Responsible Investment Solutions� 2009 Survey shows less about �avoiding sin� and more about positive approaches (green, renewable energy). Challenges Unlikely current fund manager has all the skills � therefore a spread of investment managers key � time for asset aggregators and gateways Economies of scale � but supported by growing trends to see single pools of global assets. Communication need still there � but perhaps more attentive audience -More funds mean more admin, more switching � a solid admin partner is key But speculation DC is the next frontier for the SRI space.

12. 12 Summary Compensation and benefits strategy is a key element underpinning CR policy All companies have to deliver employee benefits but when they are underpinned and aligned to a CR programme it can lead to : Competitive differentiation �employer of choice Increased motivation Improved employee retention Support to employees in difficult times Improved employee engagement Positive company PR Increased employee engagement Poor CR behaviour can have serious consequences So in summary � corporate responsibility and benefits not a side issue. Get it right �. It can go very right. Challenges can be addressed. So in summary � corporate responsibility and benefits not a side issue. Get it right �. It can go very right. Challenges can be addressed.

13. IHG Case Study Paul presented some good definitions of social responsibility. I�d now like to share some things we�ve done at IHG that help to embed our corporate culture, address important needs of people, help us attract and retain talent and are sustainable in terms of cost. Paul presented some good definitions of social responsibility. I�d now like to share some things we�ve done at IHG that help to embed our corporate culture, address important needs of people, help us attract and retain talent and are sustainable in terms of cost.

14. 14 InterContinental Hotels Group (IHG) World�s Largest Hotel Company (by number of rooms) Over 4,400 hotels, in ~100 countries, with over 640,000 rooms Biggest in Asia, Biggest in China IHG Brands: First a little about IHG� My role is�First a little about IHG� My role is�

15. 15 IHG core purpose and values Everything we do flows from our core purpose of GHGL In everything we do, we strive to demonstrate what we call our Winning Ways� Ask any of our more than 100,000 colleagues, from the CEO to the room attendant, and they will readily tell you what the Winning Ways are. More importantly, we hope you will see them reflected in our actions.Everything we do flows from our core purpose of GHGL In everything we do, we strive to demonstrate what we call our Winning Ways� Ask any of our more than 100,000 colleagues, from the CEO to the room attendant, and they will readily tell you what the Winning Ways are. More importantly, we hope you will see them reflected in our actions.

16. 16 IHG commitment (Employment value proposition) In return, we promise everyone�every colleague or potential colleague �Room to Be Yourself�. This is our Employment Value Proposition, the IHG Commitment. This includes specific promises or �Rooms�� SO WHERE DOES CORPORATE RESPONSIBILITY FIT IN?In return, we promise everyone�every colleague or potential colleague �Room to Be Yourself�. This is our Employment Value Proposition, the IHG Commitment. This includes specific promises or �Rooms�� SO WHERE DOES CORPORATE RESPONSIBILITY FIT IN?

17. 17 How IHG plan and prioritise We make our plans, our decisions and prioritize our work using �The Wheel� Most businesses recognise 3 stakeholders: customers, employees and shareholders. Or as we call them �Guest Experience, Our People and Financial Returns�. We also recognise an equally important 4th stakeholder, and that is our communities. We test everything we do against the need to be a responsible business.We make our plans, our decisions and prioritize our work using �The Wheel� Most businesses recognise 3 stakeholders: customers, employees and shareholders. Or as we call them �Guest Experience, Our People and Financial Returns�. We also recognise an equally important 4th stakeholder, and that is our communities. We test everything we do against the need to be a responsible business.

18. 18 CR at IHG awards CSR Innovation Award given in London by Hotel Magazine Corporate Social Responsibility Award given in Los Angeles to IHG by National Business Travel Association Hotel Visionary Award for Green Engage given by Hospitality Technology Magazine in Las Vegas Eco-lodging Award given at the China Hotel Investment Summit

19. 19 InterContinental Thalasso Spa, Bora Bora Here in Bora Bora (hopefully the site of next year�s conference!), We air condition our villas by bringing ultracold deep sea water up through a pipeline. This cuts down our electricity use by 90%, saving 2.5 million litres of oil p.a.Here in Bora Bora (hopefully the site of next year�s conference!), We air condition our villas by bringing ultracold deep sea water up through a pipeline. This cuts down our electricity use by 90%, saving 2.5 million litres of oil p.a.

20. 20 The Willard, Washington, D.C. Willard InterContinental in Washington DC, USA, has been announced winner of Cond� Nast Traveler�s third annual World Savers Awards, in the City Hotel category. The hotel is 100% wind powered and known for a wide range of environmental and socially responsibility features.� The Willard Hotel, located one block from the White House, is completely wind-powered. BUT WHAT ABOUT THE OTHER 4,198 HOTELS?The Willard Hotel, located one block from the White House, is completely wind-powered. BUT WHAT ABOUT THE OTHER 4,198 HOTELS?

21. 21 All of our hotels measure their impact on the environment by specifically measuring the consumption of water and fuel, and generation of waste, in relation to hotel occupancy. This way we can establish norms and identify which hotels are doing a better job than others or need improvement.All of our hotels measure their impact on the environment by specifically measuring the consumption of water and fuel, and generation of waste, in relation to hotel occupancy. This way we can establish norms and identify which hotels are doing a better job than others or need improvement.

22. 22 Socially responsible benefits at IHG - considerations Reflects culture and values Addresses real needs felt by people on a local level Sound business case � not charities but responsible businesses Market benchmarks May address broad basic needs or special needs of a few Link to government social benefits structure � is there a public safety net? is assistance already available? are there tax incentives for providing a company benefit? Does it tell a story that shows your company is socially responsible? Quickly touQuickly tou

23. 23 Enhancements to Singapore health benefits Principle: when you�re in the hospital, your job title shouldn�t matter Funding: Positive claims experience in prior years Benefit provided by Government: Insufficient In Singapore, our hospitalization insurance provided a bigger room for those having bigger job titles, and a smaller room for lower level workers. Although this is common in Singapore, it did not seem quite right in light of our Winning Ways. Our view was that your job title matters a lot at work but it should not not matter when you�re in the hospital. We had positive claims experience the prior year, and we could have simply kept the plan as is, and reduced the premiums. Instead we chose to enhance the hospital room benefit to provide everyone the same as previously reserved for upper management.In Singapore, our hospitalization insurance provided a bigger room for those having bigger job titles, and a smaller room for lower level workers. Although this is common in Singapore, it did not seem quite right in light of our Winning Ways. Our view was that your job title matters a lot at work but it should not not matter when you�re in the hospital. We had positive claims experience the prior year, and we could have simply kept the plan as is, and reduced the premiums. Instead we chose to enhance the hospital room benefit to provide everyone the same as previously reserved for upper management.

24. 24 China Life and accident insurance Local gov�t benefit is limited, based on salary capped at 3 times city average salary; death benefit as low as 5% of pay for some Market Study showed cash compensation was above market, but some benefits lag Of these, life/accident seemed the most important to address as a basic �safety net�, then savings and add�l healthcare Consistent with values of a filial society A small portion of the annual merit budget was set aside for benefits enhancement; this was fully sufficient to cover cost of introducing supplemental life & accident insurance, with death benefit equal to 3x annual salary In China, our local employees lacked a sufficient life insurance cover, depending on a very small government mandatory benefit. A recent benchmarking study showed that our cash compensation was above market whilst there were some opportunities to enhance benefits, including pension, healthcare and life insurance. We felt strongly that a basic safety net of life insurance should be in place before we introduced any other types of enhancements. Holding back some of our merit increase budget, we were able to fully fund the cost of introducing a competitive life insurance benefit of 3x annual salary, which is a common level of cover in China.In China, our local employees lacked a sufficient life insurance cover, depending on a very small government mandatory benefit. A recent benchmarking study showed that our cash compensation was above market whilst there were some opportunities to enhance benefits, including pension, healthcare and life insurance. We felt strongly that a basic safety net of life insurance should be in place before we introduced any other types of enhancements. Holding back some of our merit increase budget, we were able to fully fund the cost of introducing a competitive life insurance benefit of 3x annual salary, which is a common level of cover in China.

25. 25 India public holidays IHG offered 16 fixed holidays Other popular holidays not given Hindus and Muslims were taking Christian holidays, Buddhists taking Hindu holidays We have a diverse population, and we promise �Room to be Yourself� We saw the opportunity to �Celebrate Difference� by allowing some choice of Public Holidays We converted two of the less popular 16 holidays into �flexible holidays� In India, there are quite a number of religions and therefore a wide range of religious holidays. We had been providing 16 fixed holidays, but saw an opportunity to �Celebrate Difference� So we converted two of these days into �Flexible Holidays� to be taken on any of the recognized holidays in India This change was highly popular. Resulting from this change and other changes, our employee engagement nearly doubled from prior yearIn India, there are quite a number of religions and therefore a wide range of religious holidays. We had been providing 16 fixed holidays, but saw an opportunity to �Celebrate Difference� So we converted two of these days into �Flexible Holidays� to be taken on any of the recognized holidays in India This change was highly popular. Resulting from this change and other changes, our employee engagement nearly doubled from prior year

26. 26 Lifestyle-changing benefits Smoking and Obesity are major US health issues that impact cost and are related to lifestyle Obesity is also largely hereditary, not just lifestyle IHG wants to help those wanting a healthier lifestyle Smoking cessation: nicotene replacement, helpline counseling, cash incentive 78% of employees said they were tobacco free to get incentive, others pay extra for their healthcare Introduced Weight Watchers program reimbursement, following program completion 1,400 KG of weight lost by employees in first 6 months. One colleague lost 70 pounds (32 kg). Healthcare for smokers costs 25% more than for non-smokers Healthcare for obese costs 50% more than for normal weight Obesity is highly correlated with heart disease, diabetes and high blood pressure (read the slide for the rest) Healthcare for smokers costs 25% more than for non-smokers Healthcare for obese costs 50% more than for normal weight Obesity is highly correlated with heart disease, diabetes and high blood pressure (read the slide for the rest)

27. 27 Summary Four successful initiatives: Singapore Hospital Benefit (equality) China Life & Accident Insurance (safety net) India Public Holidays (diversity) Healthy Lifestyle (special needs; health & wellness issue) All reflect a corporate social value Some help differentiate IHG; others are a minimum safety net but all engage well with employees All require a business case, research/benchmarking and funding � sustainability is key to success Send powerful messages to stakeholder groups

28. 28 Thank you Any questions?

29. 29 Brian Colman Corporate Sales Manager Zurich International Life International Employee Benefits Seminar Marcliffe Hotel, Aberdeen 28 April 2010

30. 30 Zurich case studies

31. 31 Agenda Multi-national hotel chain Multi-national shipping company Multi-national oil services company Common themes & Industry preferences

32. 32 Bringing the problems and solutions to life Case studies highlight many of the problems employers face We will look at examples from 3 different industries Highlight their specific problems Look at the solutions Identify common themes

33. 33 Hotel chain Multinational hotel chain Multiple brands Present in many countries Complex business model Experiencing rapid growth

34. 34 Hotel chain solutions Highly mobile workforce Recruitment & retention of key staff difficult All third country nationals Poor staff perception of existing arrangements Complex business model Finite budget Short implementation timescales Multi currency requirements Variable contribution rates, subject to seniority Voluntary EE contributions Group life and disability part of the solution Lifecycle strategies Additional Aus Dollar funds added Additional Singapore Dollar scheme currency added Contributions monthly in 7 currencies, via online system Administered from 2 hubs in different hemisphers � 2 part-time basis Annual staff newsletter Online competitions to increase awareness Co-sponsored additional voluntary contribution campaigns Variable contribution rates, subject to seniority Voluntary EE contributions Group life and disability part of the solution Lifecycle strategies Additional Aus Dollar funds added Additional Singapore Dollar scheme currency added Contributions monthly in 7 currencies, via online system Administered from 2 hubs in different hemisphers � 2 part-time basis Annual staff newsletter Online competitions to increase awareness Co-sponsored additional voluntary contribution campaigns

35. 35 Hotel chain solutions Highly mobile workforce Recruitment & retention of key staff difficult All third country nationals Poor staff perception of existing arrangements Complex business model Finite budget Short implementation timescales Multi currency requirements Online �Location Codes� developed Immediate vesting, free for members Tax neutral plan Online self service + wider fund choice 7 plans, 2 hubs, 1 website Cost effective 4 week implementation from receipt of paperwork 7 currencies including one added to platform at client request Variable contribution rates, subject to seniority Voluntary EE contributions Group life and disability part of the solution Lifecycle strategies Additional Aus Dollar funds added Additional Singapore Dollar scheme currency added Contributions monthly in 7 currencies, via online system Administered from 2 hubs in different hemisphers � 2 part-time basis Annual staff newsletter Online competitions to increase awareness Co-sponsored additional voluntary contribution campaigns Variable contribution rates, subject to seniority Voluntary EE contributions Group life and disability part of the solution Lifecycle strategies Additional Aus Dollar funds added Additional Singapore Dollar scheme currency added Contributions monthly in 7 currencies, via online system Administered from 2 hubs in different hemisphers � 2 part-time basis Annual staff newsletter Online competitions to increase awareness Co-sponsored additional voluntary contribution campaigns

36. 36 Shipping company A multinational shipping company Tankers and oil service ships Over 150 vessels Worldwide offices

37. 37 Shipping company solutions Current benefit not valued by employees Irregular payment frequencies � delays/mistakes in processing contributions Mobile workforce Regional differences Recruitment & retention of key staff important High number of lower paid staff needing provision Slight differences � e.g. retirement ages (60/62) Not written under Trust Compulsory EE contributions Group life and disability part of package Default fund (low risk) on joining Simple fee based on % of contributions, invoiced to the employer Slight differences � e.g. retirement ages (60/62) Not written under Trust Compulsory EE contributions Group life and disability part of package Default fund (low risk) on joining Simple fee based on % of contributions, invoiced to the employer

38. 38 Shipping company solutions Current benefit not valued by employees Irregular payment frequencies � delays/mistakes in processing contributions Mobile workforce Regional differences Recruitment & retention of key staff important High number of lower paid staff needing provision Self service, more funds, educational seminars Non contractual + online contribution uploads from regional �hubs� Offshore, online 4 plans � all slightly different Wider fund choice + increased life and disability cover + 8 yr vesting scale Non-earmarked plan introduced Slight differences � e.g. retirement ages (60/62) Not written under Trust Compulsory EE contributions Group life and disability part of package Default fund (low risk) on joining Simple fee based on % of contributions, invoiced to the employer Slight differences � e.g. retirement ages (60/62) Not written under Trust Compulsory EE contributions Group life and disability part of package Default fund (low risk) on joining Simple fee based on % of contributions, invoiced to the employer

39. 39 Oil services Large multinational corporation Employing 100�s of different nationalities Operating in over 46 of countries Recruited 3,000 graduates in 2006

40. 40 Oil services company solutions Large, complex multinational Recruitment & retention vital Financially unsophisticated but astute & demanding members Very mobile and geographically spread workforce Many third country nationals Needed �end of service� gratuity solution Self-service for members essential 2 Defined Contribution Plans 40 part-time scheme administrators in 40 offices! Written under Zurich Trust Low retirement age - 55 Compulsory EE contributions Short 3 yr vesting scale (on ER contributions only) ER contributions restricted to one managed fund EE�s can choose from 3 managed funds Website customised and new features added at their request (free of charge) Multiple accounts per member � 5 or more is common due to end of service benefits Bespoke educational material (co-branded) Single fee based on a % of the contributions, invoiced to employer 2 Defined Contribution Plans 40 part-time scheme administrators in 40 offices! Written under Zurich Trust Low retirement age - 55 Compulsory EE contributions Short 3 yr vesting scale (on ER contributions only) ER contributions restricted to one managed fund EE�s can choose from 3 managed funds Website customised and new features added at their request (free of charge) Multiple accounts per member � 5 or more is common due to end of service benefits Bespoke educational material (co-branded) Single fee based on a % of the contributions, invoiced to employer

41. 41 Oil services company solutions 2 plans, 3 administrators and locations 3 year vesting scale, low retirement age, free for members Restricted fund range, bespoke co-branded educational material Location codes Offshore Multiple accounts per member (5 is common) Online system Large, complex multinational Recruitment & retention vital Financially unsophisticated but astute & demanding members Very mobile and geographically spread workforce Many third country nationals Needed �end of service� gratuity solution Self-service for members essential 2 Defined Contribution Plans 40 part-time scheme administrators in 40 offices! Written under Zurich Trust Low retirement age - 55 Compulsory EE contributions Short 3 yr vesting scale (on ER contributions only) ER contributions restricted to one managed fund EE�s can choose from 3 managed funds Website customised and new features added at their request (free of charge) Multiple accounts per member � 5 or more is common due to end of service benefits Bespoke educational material (co-branded) Single fee based on a % of the contributions, invoiced to employer 2 Defined Contribution Plans 40 part-time scheme administrators in 40 offices! Written under Zurich Trust Low retirement age - 55 Compulsory EE contributions Short 3 yr vesting scale (on ER contributions only) ER contributions restricted to one managed fund EE�s can choose from 3 managed funds Website customised and new features added at their request (free of charge) Multiple accounts per member � 5 or more is common due to end of service benefits Bespoke educational material (co-branded) Single fee based on a % of the contributions, invoiced to employer

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43. 43 Common themesConsistent messages across all industries Differentiation of benefits offering is important Local solutions don�t always suit a Mobile workforce � tax less of an issue when comparing overall cost / benefits Wide geographical spread of employees Used as a top-up to basic, local provisions International mobility of employees is crucial to business success Employee understanding and levels of investment knowledge are highly variable Plan cost efficiency important � for set-up and running Investment choice & flexibility important - basic to sophisticated Quality service and web enabled self-service essential Current benefit not always liked, understood or valued by employees Ability to configure to specific company requirements highly desirable

44. 44 Common themesConsistent messages across all industries Differentiation of benefits offering is important Local solutions don�t always suit a Mobile workforce � tax less of an issue when comparing overall cost / benefits Wide geographical spread of employees Used as a top-up to basic, local provisions International mobility of employees is crucial to business success Employee understanding and levels of investment knowledge are highly variable Plan cost efficiency important � for set-up and running Investment choice & flexibility important - basic to sophisticated Quality service and web enabled self-service essential Current benefit not always liked, understood or valued by employees Ability to configure to specific company requirements highly desirable

45. 45 Thank youAny questions?