LINCOLNSHIRE, Ill., June 18, 2013 – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc. (NYSE: AON) today urged the Pension Benefit Guarantee Corporation (PBGC) to rethink its proposed regulations that toughen reporting requirements for U.S. pension plan sponsors.

On Tuesday, June 18, Eric Keener, chief actuary at Aon Hewitt, testified at the PBGC’s first public hearing and suggested that rather than further complicating the process, the PBGC should work with companies to make it simpler for them to comply with reporting rules. Under the current proposed rule, pension plan sponsors would lose many of the waivers and extensions for reporting changes that impact their plans, which would place a greater burden on them.

In its testimony, Aon Hewitt made the following recommendations regarding the proposed regulations:

•    Modify and clarify requirements for financially sound plan sponsors or controlled group members.
  • Redefine the financial soundness determination date to be either the event date or the date as of the end of the prior fiscal year, as chosen by the plan sponsor.
  • Provide specific criteria under which the PBGC would change the reporting threshold for a company’s Commercial Credit Reporting Company Score.
  • Consider certain accounting items that create a negative net income for companies but do not necessarily reflect their financial strength.
  • Allow companies to meet just three of five proposed criteria to prove financial soundness.
• Lower the criteria for plan financial soundness. Lower the threshold for a plan to be considered financially sound to 95 to 100 percent funded on a premium basis or 80 to 90 percent funded under ERISA section 4044.
• Provide exemptions for active participant reduction reportable event requirements. Modify the requirements for Active Participant Reduction reporting, including exempting frozen plans and plans with fewer than 100 active participants.
• Simplify waivers for controlled groups. Provide more simplified approaches to reporting waivers for controlled groups.

“Pension plan sponsors face myriad challenges and need to comply with complex regulations when reporting changes that affect their pension plans. Eliminating many of the waivers and extensions that companies were previously allowed creates an extra burden on an already complicated pension system and further encourages employers to move away from offering defined benefit plans,” said Eric Keener, chief actuary at Aon Hewitt. “Easing the proposed regulations would allow plan sponsors to focus on effectively managing their plans. Our recommended changes would enable the PBGC to meet its objectives of increasing reporting in certain situations, while still giving plan sponsors flexibility to comply in a less restrictive manner.”

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About Aon Hewitt

Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness.  Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide.  For more information on Aon Hewitt, please visit www.aonhewitt.com.

About Aon

Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 65,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon’s global partnership and shirt sponsorship with Manchester United

Media Contacts:

MacKenzie Lucas, 847-442-2995, mackenzie.lucas@aonhewitt.com

Maurissa Kanter, 847-442-0952, maurissa.kanter@aonhewitt.com