Managing any kind of pension scheme today is a complex task and one that needs expert guidance. Grant Thornton can offer a wide range of expert pension services to employers, trustees and individuals. We pride ourselves in finding innovative, cost effective and commercial solutions to the problems they face.

1. Understanding
Pensions
Pensions services for employers, trustees and individuals

2. Managing any kind of pension scheme today is a complex task
and one that needs expert guidance. Grant Thornton can offer
a wide range of expert pension services to employers, trustees
and individuals. We pride ourselves in finding innovative, cost-
effective and commercial solutions to the problems they face.
We help the trustees and sponsors of defined benefit (DB)
pension schemes to evaluate the risks and costs of running
their scheme and help them manage the key relationships with
trustees, employees and the Pensions Regulator.
While most of the industry’s attention has been focused on
managing final salary schemes, the future of employer pension
provision is defined contribution (DC) and we recognise the
importance of the role it will play in the workplace of the future.
Pensions can be equally confusing for high-net worth
individuals, with an enormous number of complex and confusing
options. We provide a personal service to determine a course
with the aim of providing the best benefit.
For companies and trustees, our services include scheme design,
actuarial consulting, pensions assurance, accounting, covenant
assessment, as well as investment, de-risking and tax advice. For
individuals, we provide clarity and bespoke solutions. For all our
clients, we aim to help run their pension schemes more efficiently
while minimising costs.
We look forward to talking to you about how we can use our
understanding of pensions to help you.

3. Taxation
Individual
Covenant
Review
Defined
Investment
Contribution
Consulting Individual
Consulting
Advice
Benefit
Design Employer Scheme
De-risking
International Actuarial
Consulting Consulting
Covenant Scheme
Review De-risking
Individual
Advice
Investment Actuarial
Consulting Consulting
Audit &
Trustee
Taxation
Assurance Services
Services
Governance
Asset Tracing
& Risk
& Fraud
Management
Outsourced Scheme
Accounting
Covenant Assessment
The Pensions Regulator and common sense suggest that the trustees and the employers of schemes with every size of
having an independent review of the strength of a scheme’s funding deficit. We also have particular experience advising
employer covenant is a good idea. on the impact a restructuring, re-financing, sale or acquisition
It can assist trustees with their fiduciary responsibilities and will have on the scheme.
help them understand the ability of the employer to support We have strong working relationships with both the
the scheme and the impact of corporate transactions, such as Pensions Regulator and the Pension Protection Fund,
when the employer is refinanced or bought or sold. Pension allowing us to provide clients with a clear insight into the
schemes are now such an important part of a company’s regulatory regime. We helped the Pensions Regulator to
obligations that any significant change could have an impact design and operate its scheme funding and clearance guidance.
on the strength of the covenant. We are collaborative in approach and are conscious of the
Each scheme is unique and so too is its sponsoring importance of maintaining the vital relationship between the
employer. We carry out a detailed individual analysis to employer and the trustees. There is no such thing as a one size
deliver an accurate assessment of the scheme’s covenant. This fits all approach in pensions and our service and advice are
gives a clear picture of the financial strength of sponsoring tailored to suit the scheme and employer circumstance.
employer and its ability to cover any deficit, either now or
in the future. We have considerable experience advising both

4. Pension Scheme De-risking Pension Investment Consulting
The proliferation of deficits in DB pension schemes under We can provide trustees and employers with the knowledge,
all valuation bases - accounting, Scheme Specific Funding tools and support to set a pension scheme investment strategy
and full buy-out - mean that investment strategy decisions that delivers broad investment objectives, based on an ability
need to be sharper and smarter. Furthermore, the need for to evaluate the detailed structural outcomes of the various
real-time and mark-to-market valuations means that the options available.
investment strategy needs to be more detailed and granular Our Investment Consulting and Financial Planning teams
in its approach. Getting the strategy right and monitoring its give pension investment advice to pension scheme trustees and
performance in detail is critical for both good governance and individuals.
meeting scheme funding objectives.
Pension scheme buyouts, buy-ins and longevity hedging Our comprehensive service offers:
have become an important aspect of managing pension risk. • a robust investment process that manages risk and costs
Our team advises on solutions that fit client requirements • asset-liability modelling of the effect of volatilities in
and don’t force a single approach. Our experience as a result inflation, bond yields and equities
of our banking, insurance and actuarial background gives • advising on formulating and reviewing Statements of
our team a solid understanding of the market and they know Investment Principles
when a strategy is appropriate and when it is merely overly • advice tailored to each client’s specific circumstances and
complex. requirements
• independent, exceptional value whole-of-market advice
We advise on the most innovative solutions in the market
including:
• Liability driven investment strategies
Actuarial Consulting
• Longevity swaps Employers face an enormous challenge in evaluating all of
• Standard pension buy-ins, deferred premium pension buy- the risks and costs involved in running a pension scheme.
ins and collateralised pensioner buy-ins Increasingly they are turning to their own advisers,
• Buy-out and full liability settlement independent of those appointed by the trustees, who can
• Design and implementation of flight path-based de-risking challenge the existing assumptions but still work effectively
• Enhanced transfer values and pension increase exchange with their scheme trustees.
exercises Grant Thornton’s actuarial team has considerable
• Early retirement exercises experience advising employers on pensions, particularly issues
relating to DB pension schemes. Our actuarial background
We understand how important a consideration cost is for a gives us a deep understanding of the funding and valuation
pension scheme and we negotiate hard with providers to get of pension schemes, which can be critical when advising
the best deal within the risk appetite and budget of the trustee on the impact of a benefit change or a liability management
and employer. programme, or in a transaction situation.
We provide all the services that would be expected from a
leading consultancy including:
• preparing or reviewing the necessary accounting disclosures
• assessing the liabilities for accounting purposes
• providing due diligence in the case of transactions
• reviewing a scheme’s liabilities and impact on future cash flows
We pride ourselves in simplifying complex problems and
providing workable solutions. We help organisations to
manage their DB pension scheme and its risk more efficiently.

5. Pension Assurance Outsourced Scheme Accounting
Whilst the majority of schemes have a statutory requirement for Whilst many schemes have the Annual Report and Accounts
an audit of their Annual Report and Accounts, an investment prepared by their third party administrators, an increasing
in a high quality specialist audit can deliver significant value in number are seeking a more cost-effective method, by
supporting the trustees’ governance of the scheme. A employing specialist pension scheme accountants like Grant
Grant Thornton audit is much more than just minimum Thornton. As thought leaders in the sector, and the author
compliance. of ‘Pension Schemes: An Industry Accounting and Auditing
Our trustee-centric risk-based approach to statutory audit Guide’, we are well-versed in both the mandatory and evolving
results in effective two-way communication with the trustees. best practice disclosures within scheme Annual Reports.
This collaborative style, combined with our extensive sector We can also offer a fully outsourced accounting service
experience, ensures that the specific issues that concern the for larger schemes that require regular management accounts
trustees are addressed, as are the key areas in the sector as a and detailed investment accounting processing throughout
whole, via a fully tailored audit bespoke to their scheme. the year, as well as the production of the year end statutory
Our commitment to utilise only specialist pensions audit Annual Report and Accounts.
teams, and a higher proportion of senior staff time designated to
the audit, not only results in a very smooth and efficient audit
process, but also provides value added observations on best
Governance and Risk Management
practice to scheme management, in order to aid the continuous The standards of trustee governance expected by the
improvement of processes and procedures. Pensions Regulator, and the corporate standards imposed by
Our position as a leading firm in developing the IDEA sponsoring employers, are increasing to ever higher levels.
data interrogation software, and the strength and breadth of Grant Thornton has significant experience of a wide range
our in-house specialist teams, ensures that we deliver a highly of UK schemes and can help trustees initially to assess, and
innovative, effective and targeted audit service. We provide the then continually to improve, their governance processes
trustees with the additional assurance they need, in meeting and procedures. This is achieved by working in partnership
ever more challenging governance standards, in a cost effective with the trustees and their other core advisers, via facilitated
seamless manner. discussions and workshops, together with benchmarking
against relevant peer schemes. Sessions often consider specific
Our other audit and assurance services include: areas such as fraud risk, the review of the scheme risk register,
• benefit calculation reperformance or an overview of trustee governance processes.
• extended testing of internal controls As schemes continue to change and evolve, so does the
• independent valuation of complex investments environment in which they operate. As a result risk registers
• benchmarking against a relevant peer group of similar schemes and other governance processes must also remain under
• auditing transitions between investment managers/custodians regular review. They must be working documents, not a large
• timeliness and accuracy of contributions consultancy report gathering dust on a shelf. The
• internal audit Grant Thornton approach results in an easy-to-digest action
• AAF01/06, AAF02/07 and ISAE3402 reporting on plan and risk register that can become standing agenda items
internal controls for trustees, to be reviewed regularly and updated as needed.
• trustee training

6. Asset Tracing and Recovery in Pension Taxation Services
Scheme Fraud We provide pensions tax advice to businesses and individuals,
The risk of fraud is higher during an economic downturn combining technical expertise, a commercial approach, industry
and pension schemes are not immune. Schemes are understanding and exceptional client service and delivery.
vulnerable to abuse by individuals either operating on
their own or in collusion with the scheme’s advisers, yet Direct tax
companies pay far more attention to their financial accounts Our tax capabilities include assistance with
during difficult times and are more likely to uncover fraud. • the design and launch of investment funds
Grant Thornton has a range of experts including forensic, • dealing with multi-jurisdictional and high value withholding
insolvency, tax and pension professionals. Over the last tax reclaims for both investment and pension funds
three years, we have recovered more than £300m of assets, • monitoring the impact of the European Court of Justice and
including a significant proportion that had been transferred other legal decisions for investment fund and pension fund clients
overseas and where the perpetrator had vanished into hard- • structuring investments in the most tax-efficient manner,
to-access jurisdictions. We have wide experience acting for especially involving alternative asset classes
all UK prosecuting authorities and government departments, • tax compliance for any entities within your pension group
such as the Serious Fraud Office, Financial Services requiring such services
Authority and HM Revenue and Customs.
VAT
We advise funds investing in property and complex
investment vehicles on how to optimise their VAT position,
with an approach that ensures that clients are aware of
current and future legislative changes so that they can take
a proactive approach to their VAT accounting. Our work
includes monitoring VAT recovery methodologies to ensure
that what they are using is the most appropriate and that
they take into account any changes in the structure of the
investment portfolio.
Global Compliance and Outsourcing Services
We offer a single point of contact for all compliance
obligations and transparency over the status of the service
at any time. We work closely with your in-house and
outsourced delivery teams, using rigorous review processes,
documentation and service delivery of the highest quality.

7. Individual Pensions Advice for Employee Benefits
Entrepreneurs and Individuals The introduction of auto-enrolment and the National
Employment Savings Trust (NEST) has galvanised employers
It is not always appreciated just how complex a business
into focusing on the future. Not only do companies need to
pensions can be for high-net worth individuals and business
provide pensions for new auto-enrolment members, but the
owner-operators. In recent years high charges and poor
Pensions Regulator has recently reminded scheme sponsors
underlying investment performance have tarnished the
of their duty to provide the best possible retirement for
perception of pension schemes, causing many individuals to
their members.
shy away from them.
This should encourage companies to conduct a root and
The jargon and mystique surrounding pensions shroud
branch review of the benefits they offer their employees, and
their huge benefits. They are a very tax efficient investment
while pensions are the largest part of a company’s benefits
wrapper, which can in some cases provide over 50% relief
package, the review should not only be limited to pension
on contributions of up to £200,000. Such a gift from the
provision, it should also include all benefits, to ensure that
government should not be ignored, especially in today’s tight
they mesh together in an intelligent fashion.
economic times. We understand all of the potential benefits
Grant Thornton offers advice to employers on the most
and can provide bespoke advice to help individuals to
effective benefits structure, ensuring schemes are up to date,
determine which particular pension scheme aims to provide
reflect current legislation and are tax efficient and value for
them with the best benefit in a clear and understandable manner.
money.
Our team can provide advice in agreeing the right
investment strategy for each individual’s risk appetite to
Our services include:
ensure that the tax benefits of a pension can be maximised.
• design and implementation of pension schemes
Pension schemes can also be used in conjunction with an
• guidance with pensions auto-enrolment requirements
individual’s business, so a commercial property purchase can
• reviewing existing pension scheme arrangements and
be owned by a pension scheme or another investment vehicle
benefit structures
to realise the full value prior to the sale of the company.
• structuring Group Risk and Healthcare insurances
• recommending Flexible Benefits and Salary Exchange
arrangements
• providing individual investment advice and guidance
• advice on international benefits structures
We have a national team of specialists, dedicated to providing
the best level of advice. Our advisers are authorised to give
financial advice, which means that we can advise employees
on their pensions decisions rather than just outline their
options. We listen to the business challenges that our clients
face and then work with them to deliver pragmatic solutions
in line with their business goals and values.

8. Contact
Covenant Assessment Actuarial Consulting Individual Pensions Advice
Darren Mason Paul Cook Neil Messenger
Partner Director Partner
T +44 (0)20 7728 2433 T +44 (0)20 7728 3070 T +44 (0)7966 446397
E darren.m.mason@uk.gt.com E paul.cook@uk.gt.com E neil.messenger@uk.gt.com
Keith Hinds Asset Tracing Richard Wheatley
Partner Nick Wood Partner
T +44 (0)20 7865 2716 Partner M +44 (0)7968 324695
E keith.hinds@uk.gt.com T +44 (0)20 7728 2426 E richard.wheatley@uk.gt.com
E nick.s.wood@uk.gt.co
Pension Scheme De-risking
Kelvin Wilson Taxation
Associate Director
Dana Ward
T +44 (0)20 7865 2402
Partner
E kelvin.wilson@uk.gt.com
T +44 (0)20 7728 3316
E dana.ward@uk.gt.com
Investment Consulting
Peter Loughridge Employee Benefits
Director
Ian Hartnell
T +44 (0)28 9031 6523
Director
E peter.loughridge@uk.gt.com
T +44 (0)20 7728 3018
E ian.hartnell@uk.gt.com
Pension Assurance & Governance
Fiona Baldwin Matthew Beaman
Director Senior Manager
T +44 (0)161 953 6461 T +44 (0)121 232 5363
E fiona.baldwin@uk.gt.com E matthew.a.beaman@uk.gt.com
Neil Knights
Director
T +44 (0)20 7865 2873
E neil.a.knights@uk.gt.com
© 2012 Grant Thornton UK LLP. All rights reserved.
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refer to one or more member firms, as the context requires. Grant Thornton International and the member firms are not a worldwide partnership. Services are delivered independently by member firms, which
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