watsonwyatt.com CEIOPS Conference 2007 Employer opportunities from IORP directive Christopher Mayo 20 November 2007
Copyright © Watson Wyatt Worldwide. All rights reserved 2 View from the summit Employer- opportunity to benefit from: Simplified governance Single regulatory regime Maximise purchasing power/economies of scale Lower cost of adding plans for new EU territories Better solution for small populations Selecting home state based on: Labour and social laws Minimum funding Supervisory requirements
Copyright © Watson Wyatt Worldwide. All rights reserved 3 How to get there – direct “pan European” route Employer takes direct route to the summit: High cost for research: Need to explore each regulatory aspect Need to test tax treatment Risk of failure or surprise pitfalls No first mover advantage for a corporate Need to build administration platforms Need to build governance structure
Copyright © Watson Wyatt Worldwide. All rights reserved 4 How to (almost) get there –indirect route Employer takes it in stages: Pursues opportunities that cover all employees Asset pooling Consistent governance philosophy Corporate plan design policy Commonality of providers Multinational pooling Consistent administration platform