Skip to main content
Opens in a new tab External site
Aon Hewitt launches Implemented Annuities service
New service simplifies bulk annuity purchase with a delegated approach

London, 23 October, 2014 – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON), has announced the launch of its Implemented Annuities service which helps defined benefit pension schemes to simplify and streamline the process of bulk annuity transactions by delegating key elements of the process to Aon Hewitt.

The Implemented Annuities service uses Aon Hewitt's fiduciary investment management platform, Delegated Consulting Services, to enable efficient preparation of a pension scheme's assets for a bulk annuity transaction, and then the timely and cost efficient transfer of suitable assets to the chosen insurer to execute the transaction.

Martin Bird, senior partner and head of Risk Settlement at Aon Hewitt, said:
“For many pension schemes, the ultimate objective is the use of a bulk annuity to secure benefits with an insurer.  For many too, fiduciary investment management through Delegated Consulting Services is the right solution for optimising their risk/return balance in an efficient governance structure. Taking this fiduciary management approach enables schemes to drive towards their objective in a risk-controlled manner.

The Implemented Annuities service brings both this approach and this objective together in a coherent framework for the first time.  It combines Aon Hewitt's vast experience in both the bulk annuity market and in the fiduciary investment management arena  and provides a clearly defined and managed process which can help trustees find the bulk annuity deal that best suits their pension scheme.“

Sion Cole, partner and head of Client Solutions at Aon Hewitt,said:
“We have gained considerable experience in the fiduciary management of pension schemes and we can now see how this can be leveraged to their further advantage by ensuring that schemes’ investments are structured in a way that positions them for the move to a bulk annuity purchase. Our Implemented Annuities approach - a first in the industry - will be the solution for many schemes which are ready to de-risk, want to take advantage of the right market pricing and therefore achieve greater pension stability”.

Pension schemes that are already using fiduciary management services for their investment decision-making are in a good position to make use of this solution by further delegating the planning, negotiation of legal terms, impact assessment and implementation of a bulk annuity transaction to their provider. As more of these schemes get closer to their objectives, the appetite and need to de-risk will also grow. The Implemented Annuities service is also available to schemes looking purely for a solution to navigate the complexity of the bulk annuity market and who are seeking to secure the best price and terms available from the market.

Martin Bird continued:
“There is a clear industry trend for trustees to delegate some activities to pension service providers in order to be able to place greater focus on the key decisions for their scheme. We have already seen a rise in delegating some of the investment decisions, so delegating the annuitisation process is a natural next step for many schemes as they reach their objectives and want to access the market in the most efficient manner possible.”

The key features of Aon Hewitt’s Implemented Annuities solution include: 

  • Bespoke annuity price tracking for each scheme
  • A plan for the process, using scheme-specific trigger points
  • Streamlined implementation, with the upfront provision of key advice and preparation
  • Insurer due diligence – covering financial, administration and legal aspects
  • Enhanced insurer engagement and co-operation (including Aviva, Legal & General, PIC and Rothesay Life; Prudential also support the platform and detailed joining discussions are ongoing)
  • Access to bespoke tailored annuity contracts and associated legal advice through the use of Pathway
  • Cost-efficient and smooth asset preparation and transition, including access to bespoke "annuity ready" asset funds
  • Risk modelling and price monitoring by Risk Analyzer, Aon Hewitt’s online valuation, monitoring and risk analytics system
  • Project management and governance/decision-making support
  • Advisory fee certainty and control

The launch of Implemented Annuities follows the recent launch of Pathway by Aon Hewitt and Eversheds, the complete streamlined solution for bulk annuity purchase, including pre‑negotiated contract terms with insurers.

― Ends ―

Notes to Editors

About Aon Hewitt 

Aon Hewitt empowers organisations 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 organisational and personal performance and growth, navigate 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.

Sign up for News Alerts: http://aon.mediaroom.com/

Follow us on Twitter: @aonhewittuk


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 66,000 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, best reinsurance intermediary, best captives manager, and best employee benefits consulting firm by multiple industry sources. Visit aon.com for more information on Aon and aon.com/manchesterunited to learn about Aon’s global partnership with Manchester United

Media Contacts

Colin Mayes
Aon Hewitt
01372 733689
colin.mayes@aonhewitt.com

Marina Jane Sanchez
Capital MSL
020 3219 8811
marina.jane-sanchez@capitalmsl.com

Media Resources

Access international media contacts, the full library of Aon media releases, and a media kit with fact sheet and executive bios, via links below.

Media Contacts
Media Releases
Media Kit
Featured Updates