LONDON, 9 May 2013 – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON), has welcomed the 2013 annual funding statement from the Pensions Regulator (tPR), noting the breadth of measures it covers and their implications for both businesses and pension schemes.

Kevin Wesbroom, senior partner at Aon Hewitt said:
"There is something for everyone in this year's statement – both trustees and sponsors. That may be the way guidance will evolve as tPR comes to terms with its new objective of considering sustainable growth for the sponsoring employer.

"Pension scheme sponsors may well latch onto the words in Michael O'Higgins, the tPR chairman's, press statement that trustees should "protect the interests of retirement savers, whilst also enabling viable businesses to thrive and grow". They will also relish his exhortation that trustees should not be "overly prudent" and that trustees can use the flexibility available in setting the discount rate. This is in contrast to the 2012 statement, in which the Regulator strongly discouraged trustees from amending the method for setting the discount rate.

Kevin Wesbroom continued:
"But trustees may choose to focus on other phrases in the statement, in particular, "As a starting point, trustees should consider whether the current level of contributions can be maintained", or alternatively the reference to looking at "long-term plans" rather than short term fixes. Both trustees and sponsors will need to come to terms with the integrated approach to addressing covenant, investment and funding risks – which the Regulator had previously referred to as 'complete financial management plans'.  These are expected to form the centre piece of the tPR's new code of practice on funding which will be published in draft in the Autumn.

"The Regulator has a delicate balancing act transitioning from its current responsibilities to incorporating the as yet unknown, future statutory objective. When the new power is clarified, this will not necessarily make life any easier for the Regulator – it will have to apply the same judgement that trustees and sponsors currently need in order to arrive at pragmatic outcomes that balance the interests of businesses and pension scheme members."

Media Contact: 

Colin Mayes                                           Adam Leviton
 Aon Hewitt                                             Capital MSL
 01372 733689                                        020 7307 5339
colin.mayes@aonhewitt.com                    adam.leviton@capitalmsl.com

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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 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 61,000 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.