Learn about how blockchain can work for your pension agency.

1. PENSIONS
BLOCKCHAIN&

2. IFYOUCREATEDAPENSION
AGENCYTODAYYOU
WOULDUSE
BLOCKCHAINSOLUTIONS
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Imagine if retirement systems could stop spending time
reconciling shared data and instead immediately access
data from a single trusted source.
WITHBLOCKCHAINYOUCAN

3. DEFINITIONSTOKNOW
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A set of records
stored and
synchronized across
multiple parties that is
maintained by
distributed
transactions executed
on a decentralized
network.
A new type of database
system, which enables
multiple parties to share
access to the same
data, at virtually the
same time, with an
unprecedented level of
security and
confidence.
Manual processes
normally guided by
legal contracts can
automatically enforce
stakeholder-agreed
rules and process
steps. When contract
conditions are met,
pre-specified and
agreed actions occur
automatically.
An algorithm applied
by the distributed
network to agree on
the correct ordering
of transactions and
the current state of
the network.
Methods to secure
communications and
prevent unauthorized
parties from reading
messages that use the
principles of
mathematical and
computer science
theory and practice.
DISTRIBUTED
LEDGER
BLOCKCHAIN
SMART
CONTRACT
CONSENSUS
MECHANISM
CRYPTOGRAPHY

4. EXAMPLE:HOWBLOCKCHAINWORKS
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1
Alice wants to
update her address
2
She submits an address update
that represents a transaction
3
This transaction is broadcast to
every party in the network
6
The network now has
access to Alice’s
updated address
5
The Block is then added to the Chain which
provides a permanent, non-repudiable and
transparent record of the transaction
4
Those in the network approve the
transaction and add it to a new
Block of transactions

5. HOWTRANSACTIONSFLOW
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Every participant stores the chain. Therefore, a change must be applied to every participant’s
chain to be finalized. This makes it evident if data on the chain has been corrupted.
GENESIS
BLOCK
Tx1
Tx2
…
Txn
…
The very first block of a
blockchain is called the
“Genesis Block”
Transactions are organized
into sets or “blocks”
Each block refers to the previous
one, thus forming a chain
Tx1
Tx2
…
Txn
Tx1
Tx2
…
Txn
Tx1
Tx2
…
Txn

6. NOT ALLBLOCKCHAINS ARE ALIKE
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PERMISSIONED
Identity of users is whitelisted (or blacklisted)
through a validation process. Different levels of
read or write access are assigned to participants
for various types of data in the blockchain
PRIVATE
One or more organizations determines
who can be “onboarded” to run a node
and participate in consensus
VS
PERMISSIONLESS
Anyone can read and add transactions
to this distributed ledger and expect to
see them included if they are valid (one
example is Bitcoin)
VS
PUBLIC
Anyone can stand up a node to maintain
a copy of the distributed ledger and
participate in the consensus process

7. TOKENIZEVS.MUTUALIZE
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Tokenized Blockchain Solutions
SENDING RECEIVING
Tokens
Transferred
Initiates transfer
of asset tokenized
on the blockchain
Receiver’s
account is
credited with the
asset tokenTokens
Transferred
Mutualized Data Blockchain Solutions
There are two main approaches to implement blockchain solutions:
• One tokenizes assets (e.g. financial products) and value is transferred via the blockchain
• The other where data is mutualized to improve coordination between stakeholders via the blockchain

8. THEPOWEROFBLOCKCHAIN
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Benefits
• Ensures consistent data
provenance across disparate
systems
• Reduces time spent
reconciling data between
organizations
With the use of blockchain technology, traditional disparate and segmented data can be
combined into a single trusted source of truth used to capture and share data between various
nodes within a network.

9. RIPE FOR BLOCKCHAIN
THEPENSIONLANDSCAPE:
PAYROLL REPORTING
Public retirement systems often receive member payroll data from various
employers that requires time-consuming validation and reconciliation
RECIPROCAL PENSIONS
Public retirement systems can be part of a network of reciprocal systems
through which member data is shared among these systems
IDENTITY MANAGEMENT
Public retirement systems have to authenticate members’ identities several times
during the lifecycle to complete certain processes
PLAN OPTIONS
Public retirement systems offer defined contribution plans in addition to defined
benefit plans, and must update system architecture to support processing this
data

10. MEMBER/EMPLOYEE
DATAMANAGEMENTTODAY
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Challenges
• Many entities separately
managing the same data for
a given employee/member
• Entities send/report the
same data sets to multiple
agencies
• Reconciliation is required to
ensure data is consistent
across each entity
EMPLOYEE
MEMBER
Key
Retirement
System
Employer
Employee/
Member Data
THIRD PARTY

11. MEMBER/EMPLOYEE
DATAMANAGEMENTWITH
BLOCKCHAIN
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Solution
• Create a permissioned/private
blockchain so each entity can
access and/or update the
appropriate employee/member
data
Considerations
• Entities must agree to participate
and to a standard set of rules
• Managing permissions of each
entity type such that they can only
access and/or update member
data relevant to their processing
EMPLOYEE THIRD PARTY
Key
Retirement
System
Employer
Blockchain
MEMBER

12. BLOCKCHAININACTION
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EUROPEAN PENSION PROVIDER
The organization is a major pension provider and fund
manager in Europe.
• Accenture created a proof of concept for managing pension- related
information through a smart contract blockchain platform.
• Used by multiple pensions entities, the blockchain shortens
administration time, increases policy and decision making process
traceability, and reduces administrative costs.
• Proof of Concept between members of the European pensions
ecosystem have helped create a roadmap to implementation to
support all four million members.
HOW ACCENTURE
IS HELPING
MOVING
FORWARD
CLIENT

13. Copyright © 2018 Accenture. All rights reserved. 13
The ID2020 Alliance is a UN affiliated program. Accenture is
working with the ID2020 Alliance to develop a digital identity
solution combining the power of biometrics and blockchain to
provide a global identity solution
BLOCKCHAININACTION
ID2020
HOW ACCENTURE
IS HELPING
CLIENT
Accenture has joined the ID2020 Alliance with partners like
Microsoft to create an open, human-centric approach to identity.
The alliance draws on advances in biometrics and innovative
technologies and brings together expertise from business,
government and non-government agencies. Our experts at the
Dublin Innovation Center contribute cross-functional and cross-
cultural expertise to drive it forward in collaboration with both UN
and other global humanitarian organizations. Learn more

14. HOWYOUCANGETSTARTED
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Unlock the Potential of Blockchain
Given the evolving nature of this
technology, select targeted use
cases as pilots.
Extend the scope and scale of
successful pilots as key business
and technology issues are
resolved.
Drive gradual enhancements
through iterative design and
continuous improvement.
Re-Imagine Proof of Concept Pilot Scale Expand & Manage
BLOCKCHAINCAPABILITIES
TIME
1
Discover
2
3
4
5
6
Design & Plan
Controlled
Learning
Continued
Learning
End-to-End
Implementation
Expand
Platform

15. Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital,
technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business
functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help
clients improve their performance and create sustainable value for their stakeholders. With more than 442,000 people serving clients in more
than 120 countries, Accenture drives innovation to improve the way the world works and lives.
Visit us at https://www.accenture.com/pension
ABOUT ACCENTURE
CONTACTUS
Owen Davies
Global Managing Director,
Pension Industry
Murray Smith
North America Pension
Industry Blockchain Lead
Teri Bennett
Senior Manager,
Pension Industry
Eyal Darmon
Managing Director,
Pension Industry