London, 4 July, 2013 – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON), has said that it is seeing a change in the UK pensions market as developments such as auto-enrolment are altering the type and range of services that schemes are seeking from providers.

Russell Agius, partner at Aon Hewitt, said:
"Change tends to be gradual where pension schemes are concerned but we are currently seeing medium-sized schemes reaching a tipping point.  We believe this is being driven by a number of factors such as financial pressures, increased legislative change, governance concerns and, notably, the introduction of auto-enrolment.

"In the past, we frequently saw schemes using the same provider for a limited number of services - for example, actuarial and investment advice, or administration and actuarial advice, but that tended to be restricted to defined benefit (DB) schemes. Now we are seeing medium sized schemes looking to combine services covering both DB and defined contribution (DC) schemes as well as various risk benefits too, such as insurance broking."

Russell Agius continued:
"In other words, this major section of the UK pension scheme market is looking to take the integration of multiple pension services much further than has previously been the case. Auto-enrolment in particular appears to be a driver for this trend by increasing the focus on DC schemes while DB arrangements become more finance and risk related."

The Pensions Regulator's figures show that membership of DC schemes now accounts for 27% of workplace pension memberships overall in the UK.  Meanwhile, the Department of Work & Pensions has estimated that there will be between five and eight million more pension savers as a result of auto-enrolment – who, in practice, will largely be savers into DC schemes.

Russell Agius said:
"DC schemes are therefore starting to take centre-stage as they become the flagship scheme for organisations' current employees.  By contrast, DB schemes are increasingly viewed as legacy financial commitments for the scheme sponsors."

Media Contacts:  

Colin Mayes                                       Giles Abbott
Aon Hewitt                                         Capital MSL
01372 733689                                    020 7307 5340
colin.mayes@aonhewitt.com               giles.abbott@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.