Willis Towers Watson : Institute and Faculty of Actuaries appoints Stewart Patterson to Incentive Exercise Monitoring Board

LONDON, 6 June 2016 - Willis Towers Watson's pensions de-risking expert, Stewart Patterson, has been appointed to represent the Institute and Faculty of Actuaries (IFoA) on the industry Incentive Exercise Monitoring Board (IEMB). The IEMB is responsible for creating and updating the industry's Code of Good Practice on Incentive Exercises, the latest version of which was released in January 2016.

The Code is voluntary and relates to exercises where members of defined benefit pension schemes are given an option to change the form of their accrued benefits. This includes some pension increase exchange, transfer or small lump sum options. The Code covers when advice or guidance should be provided and how offers should be communicated.

Stewart Patterson, Head of Liability Management at Willis Towers Watson, said: 'I am a strong supporter of the Code of Good Practice on Incentive Exercises and am keen to ensure it continues to lead to well-run exercises. I was very pleased to see that the latest update of the Code has recognised the increasing emphasis on pension fund trustees to take ownership of member choice exercises. I think it is right to have a framework for trustees to be able to reference when offering members choice in a robust, fair and balanced way.

'This is an increasingly important area for pension funds and their members. Pension freedoms have opened up more options for people with defined benefit pensions who are interested in transferring their benefit to access more flexible retirement options. Well run incentive exercises can and should be a legitimate part of the risk management toolkit of pension fund trustees and scheme sponsors, as well as ways for members to access more freedom and choice from their retirement savings.'

Margaret Snowdon OBE, Chair of the IEMB Board, said: 'We are delighted to welcome Stewart to our Incentive Exercises Monitoring Board. His direct experience as an industry practitioner will be greatly benefit us as we continue to monitor the effectiveness of incentive exercises.

'The evidence we've seen over the last few years shows that the Code of Good Practice on Incentive Exercises is working. The market develops over time and new types of exercises or market practices are being developed all the time. Winding-up lump sums (WULS) are likely to be a consideration for the Board over the next twelve months as we look to ensure these are not being used by schemes in a way that disadvantages members, so it's great to be able to call on the experience of industry practitioners as part of our Monitoring Board.'

ABOUT THE INCENTIVE EXERCISE MONITORING BOARD (IEMB)

The IEMB is an independent volunteer board made up of industry bodies and specialists with an interest in the conduct of incentive exercises and related activities. As set out in the Code, the IEMB is responsible for monitoring the effectiveness of the Code in the conduct of Incentive Exercises. The Board will review practices and will use the information gathered to update the Code as necessary. A full list of the Board's membership can be found here: http://incentiveexercises.org.uk/about

ABOUT WILLIS TOWERS WATSON

Willis Towers Watson (NASDAQ: WLTW ) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 39,000 employees in more than 120 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas - the dynamic formula that drives business performance. Together, we unlock potential.