London, 1 August, 2013 – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON), has commented on the implications of the Pension Protection Fund's (PPF) decision to replace its assessor of insolvency risk, Dun & Bradstreet (D&B) with Experian.

Milan Makhecha, principal consultant at Aon Hewitt, said:
"It's clear there is now a lot of work to be done by both the PPF and Experian.  In order to assess the 2015/16 levy, it appears Experian will need to provide sponsor ratings at each month-end from April 2014 onwards – if we assume the current framework of monthly measurement of insolvency risk is retained.

"That deadline is just nine months away, so within that time Experian need to come up with a sponsor rating model and the PPF need to publish their proposals for the levy triennium starting from 2015/16.  The PPF is also yet to publish its Determination for this year’s levy (2014/15).  That all feels like a tough ask."

Milan Makhecha continued:
"There are also significant implications for pension schemes themselves.  It took some time for them to get a really good understanding of their sponsors' D&B scores and their feedback helped refine the system over the years. That process will – to some extent – inevitably need to be repeated with Experian.

"However, this may also provide a chance for a re-think of the levy system; there were some perceptions of unfairness about the previous scoring system and schemes will undoubtedly appreciate the PPF and Experian finding ways of refining it.  For example, this is an opportunity for a comprehensive review of the way schemes and their sponsors can influence and challenge their ratings.  At least, that would ensure that any issues with the new system can be rectified quickly - but it is imperative this is all implemented with the least pain and expense for pension schemes."

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.