LONDON, 25 September 2013 – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE:AON), today announced the findings from its annual survey of trends in employee benefits, which covers pensions, flexible benefits, health & risk benefits and employee benefit communications.

The Employee Benefits & Trends Survey 2013 comprises responses from over 340 UK HR, benefits and related professionals in organisations of all sizes and sectors, collected during the summer of 2013.

The survey data reveals that 39% of respondents to Aon Hewitt's 2013 Employee Benefits and Trends survey cited 'preparing for auto-enrolment' as their biggest objective over the next 12 months, an increase from 25% the previous year, and followed by 'improving benefit design' (9%) and 'reducing benefit complexity’ (7%).

As well as recognising auto-enrolment as a key priority, the survey asked about employers' state of preparation; 45% of respondents have started work on preparing for auto-enrolment but are not yet ready, with 21% operating auto-enrolment already and 24% claiming to be ready for its launch, compared with 13% the previous year.

A very few (3%) have not yet identified the changes they need to make, with a further 1% claiming not to have considered auto-enrolment's implications. These figures have decreased significantly since the previous survey, reflecting the rolling calendar of staging dates for auto-enrolment since 2012.

46% of respondents state that auto-enrolment is making the operation of their DC plan more complicated, with a third of respondents (33%) setting up a new pension plan for their auto-enrolled population. The survey also showed that 21% of employers have not yet considered the implications of auto-enrolment for pension scheme investment, while 20% have not considered its impact on investment options for their default fund.

Debbie Falvey, consultant at Aon Hewitt, said:
"Employers are clearly alive to the fact that auto-enrolment is their biggest benefits challenge at the moment.  Preparations for auto-enrolment have moved on dramatically since our last survey, and it's reassuring that so many employers of all sizes are planning ahead.

"However, the complexity of auto-enrolment must not be under-estimated.  With almost half of survey respondents claiming that it has made their DC operations more complex, it evidently has the potential to add to the workload of those managing DC schemes.

"Scheme sponsors and trustees need to ensure they have fully considered all auto-enrolment's implications – for example, on investment, particularly for their default funds, which will see large increases in membership. Take-up rates for auto-enrolment are so far proving high; there is significant potential impact on costs for DC sponsors. Employers need to ensure they have assessed and addressed all these implications, to avoid potential nasty shocks just before their staging dates."

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

Notes to editors

Aon Hewitt's Employee Benefits & Trends 2013 is available from www.aonhewitt.co.uk/benefits-solutions

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.

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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