LONDON, 23 January 2014 – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE:AON), has highlighted the key priorities for medium-sized pension schemes and employers in 2014 and offers advice on the actions to take.

Russell Agius, partner at Aon Hewitt, said:

"There was a lot to take in for all sections of the UK pensions industry in 2013. We may have become accustomed to dealing with legislative change, but implementing auto-enrolment was a new challenge for employers, while for schemes there were new opportunities emerging to de-risk, as well as to lock in gains – if you were set up to do so.

"So what should your priorities be for 2014? Are you positioned to make the best of what may be an improving economy? Are you getting the best from your providers and advisers – both in terms of value for money and good advice and service? Here are our top suggestions for medium-sized schemes:

1. Long term planning - When did you last review your scheme's long-term destination? Does a target of self-sufficiency, a buyout or a buy-in still make sense? How valuable, and desirable, is longer term stability of pension costs to the trustees and company?
2. De-risking triggers - During 2013, 40% of schemes in Aon Hewitt's Triggers Survey saw their triggers activated by improving investment returns. Given recent market movements, is it time to review your triggers?
3. Auto-enrolment – Still so many questions…Is your company's staging date this year? Are you ready? Do you know what needs to be done and by when? How much work will you do yourself and in which areas will you need support? Can you deliver a good scheme at a reasonable cost to your members?
4. Defined Contribution (DC) - Following hot on the heels of auto-enrolment, when did you last review your DC scheme, DC section, DC top-up and AVC arrangements? Are you getting the best investment outcomes and value for money? Also, given recent legal clarification of what constitutes DC arrangements, have you checked yours is a pure DC scheme?
5. Liability management – What is your company's view on the pension scheme? 2013 saw a rise in interest in pension increase exchanges, as well as opportunities for appropriately managed enhanced transfer value exercises - the latter can be of particular interest for some high earners.
6. Efficient advice - Are you receiving the right advice and in a way that delivers value for money across all services? Is it time to integrate different service providers to aid co-ordination?
7. Investment - 2013 saw an explosion in delegated investment mandates.  Are you up-to-speed with the different offerings that exist in the market? Would fiduciary management be an appropriate choice for your scheme? Have you taken an active decision to retain all investment activities within the trustee board? Can you devote enough time to reviewing and acting on investment opportunities?
8. Independent trustees - If you haven't already, is now the time to consider appointing an independent trustee to help with the day-to-day decision making?

Russell Agius continued:

"The points above only scratch the surface of some key considerations for 2014. What's important for some schemes will be very different for others - but the first weeks of the New Year present an opportunity to take a fresh look and to prioritise accordingly."

 Media Contact:
 Colin Mayes                                          Marina Jane Sanchez
 Aon Hewitt                                            Capital MSL
  01372 733689                                       020 3219 8811
 colin.mayes@aonhewitt.com                  marina.jane-sanchez@capitalmsl.com
 

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.

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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