Member Options

Helping your members make better decisions

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It is now more important than ever that pension schemes implement robust, efficient and cost-effective support for members who want to access options. Our dedicated teams of experts can help you deliver better outcomes for your members.

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There is significant momentum gathering around members accessing their pension flexibilities. Increasing numbers of members are transferring out of defined benefit schemes.

At the same time the number of people reaching retirement in defined contribution arrangements and wanting to access flexibilities is growing and will grow rapidly.

Whether for employer-promoted exercises or as part of a range of options for members as they retire, good processes can add value and reduce risk for trustees and employers.

Most importantly, such a process will help protect members from scams and help them make better decisions about their benefits.

TRANSFERS OUT

PENSION INCREASE EXCHANGE

TRIVIAL COMMUTATION

INCOME DRAWDOWN

TAX-FREE CASH

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A properly implemented and managed options framework can:- achieve better outcomes for members; and- effectively manage pension costs and risks

for both trustees and employers.

This applies to both one-off exercises and ongoing at-retirement options.

Our approach is member-focussed throughout. We believe it is crucial that members receive the right support, have options that are relevant and of value to them, are not exposed to excessive charges and do not fall victim to scams.

Member engagement is also critical to the success of any exercise, justifying the investment of cost and time by employers and trustees. It is well known that higher engagement drives better outcomes for members.

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SET YOUR STRATEGY COMMUNICATE WITH YOUR MEMBERS

PROTECT YOUR MEMBERS TO REDUCE RISK FOR YOUR MEMBERS AND FOR YOU

We can help you...

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We can help you to: - Understand the cost and impact- Decide which options to offer

and under what terms- Determine the right levels

of guidance and support for your members

- Reach agreement between the employer and trustees

How we can help

Why XPS?

Step 1 Setting your strategyThe right strategy is crucial to ensuring that options provide value for money for the member, employers and trustees.

We have the technology, Radar, to help you make decisions quickly and efficiently.

This allows us to:- Assess the impact of different

strategies in real time for defined benefit members

- Monitor the impact of member options over time as market conditions change

We have worked with clients to develop a unique approach to setting member option terms. Our ‘one member, one value’ approach helps to ensure that options are transparent and easy to understand.

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We can help you to: - Communicate effectively with

your members- Select an appropriate

Independent Financial Advisor (IFA) to support your options, if required

- Support your members through guidance and/or advice- Prepare administration systems

and processes for offers

How we can help

Why XPS?

Step 2 Communicating with your members

Our Centre of Excellence team is specialist in communicating options to members.

This puts the member experience at the heart of your option exercise, with the following key benefits:- A specialist team of communication

experts able to deal with options exercises of any size or type

- Deep expertise in successful management of member option projects, having run over 125 exercises

- Communications that are proven to engage the member, resulting in engagement rates up to double those of the market norm

- Technology that provides the best experience for the member – for example, members always have their calls routed to the same team member

- Separate team to our day-to-day Trustee administration team, minimising disruption

Member engagement is at the heart of a successful offering, ensuring that options are successful and that members make the right choice for them.

Our approach contrasts starkly with other advisers where their experience is spread thinly across their client teams.

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We can help you to: - Provide a safe, low-cost and high

quality pensions arrangement for your members to transfer into

- Protect your members from scams

Pension scams can result in members losing vast amounts of their pension savings. In addition, schemes paying transfers to scam vehicles can incur tax penalties.

Our Pension Scam Identification Team provides an extra level of protection to members and trustees from scams. Our specialist team conducts a telephone call with a member wishing to transfer to check for recognised signs of a pensions scam.This service is now used by over 100 pension schemes in the UK and our team can work alongside your existing administration processes.

How we can help

Why XPS?

Step 3 Protecting your members

We have a market-leading defined contribution occupational master trust – the National Pensions Trust (NPT).

We strongly believe that advice does not stop when a member decides to exercise an option.

NPT is overseen by professional independent trustees, a governance structure that puts the members first.

The key benefits of NPT for your members are:- One of the few master trusts

to receive both the Pensions Quality Mark and the Retirement Quality Mark from the Pensions and Lifetime Savings Association (PLSA)

- Access to all the retirement flexibilities introduced with ‘freedom and choice’

- Technology-enabled, providing members with real-time fund information, interactive benefit modellers, webchat and a helpline

- Low levels of charges, which is a key consideration for financial advisors and could result in more positive recommendations and higher take-up rates

- An independent trust, meaning NPT isn’t tied to a particular provider. This enables changes to be made to the investment funds and the investment platform if necessary, unlike most other master trusts

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We are certain that we can make a difference and would be happy to invest in preparing feasibility analysis and presenting this to you on Radar at no cost. All we need is your latest scheme accounts and valuation funding report.

Request your complimentary feasibility analysis

Next steps Find out moreWe would welcome the opportunity to come and show you how we add value.

For further information and to request your analysis contact Mark Barlow, Wayne Segers or Helen Ross.

t 0113 284 8001

Mark BarlowSenior Consultant

e mark.barlow@ xpsgroup.com

t 0121 230 1900

Helen RossSenior Consultant

e helen.ross@ xpsgroup.co.uk

t 020 3326 6101

Wayne SegersPrincipal

e wayne.segers@ xpsgroup.com

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XPS is the only UK pensions specialist listed on the FTSE. We are 100% focused on the UK pensions market.

32,000pension scheme members

helped last year by our Centre of Excellence team

125employers

providing pensions with the National Pension Trust

100+pension schemes

supported by our Scam Identification team

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Contact us xpsgroup.com

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© XPS Pensions Group 2019. XPS Pensions Consulting Limited, Registered No. 2459442. XPS Investment Limited, Registered No. 6242672. XPS Pensions Limited, Registered No. 03842603. XPS Administration Limited, Registered No. 9428346. XPS Pensions (RL) Limited, Registered No. 5817049.

All registered at: Phoenix House, 1 Station Hill, Reading RG1 1NB.

XPS Investment Limited is authorised and regulated by the Financial Conduct Authority for investment and general insurance business (FCA Register No. 528774).

This communication is based on our understanding of the position as at the date shown. It should not be relied upon for detailed advice or taken as an authoritative statement of the law.

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