LONDON, 6 March 2014 – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE:AON), has said that if the final version of the IORP II Directive follows the content of the leaked draft featured recently in the media, then it will provide a significant boost to cross-border pension provision in Europe.

Paul Bonser, partner and head of Aon Hewitt EU Cross-Border Pensions Consulting said:

"This could be a real breakthrough for cross-border pension provision. Aon Hewitt's large global cross-border clients have met the Commission to explain how and why they are setting up cross-border plans, and how things can be made easier.  If the Commission has listened - and this leaked draft would indicate that they have - then there could be a golden opportunity for multinational companies. The new measures would allow multinationals to use cross-border pension plans to provide more sustainable defined benefit and defined contribution pension provision for both their current and former employees across the European Economic Area (EEA)."

Aon Hewitt is looking for five key areas of change in the final updated IORP Directive:

• Making it easier to transfer assets and liabilities to cross-border pension arrangements
• Removing the full funding requirements for cross-border plans (in order to provide parity with other non-cross-border pension funds in the same country)
• Improving and shortening the cross-border authorisation processes
• Clarifying the definition of cross-border activity
• Ensuring any new governance requirements can be implemented in a proportionate manner

Colin Haines, principal consultant of Aon Hewitt International Retirement & Investment said:

"Multinational companies are taking more control of their European pension arrangements. They are looking to achieve economies of scale and to improve overall governance and oversight.  Within the EEA, this can be much easier when multiple plans are consolidated into a single cross-border pensions structure - which is why several global companies have now set up cross-border plans covering current and former employees in multiple countries."

Aon Hewitt's white paper, 'Cross-border financing of pension plans in Europe' is available from paul.bonser@aonhewitt.com or colin.haines@aonhewitt.com

Media Contact: 
Colin Mayes                                      Giles Abbott
Aon Hewitt                                         Capital MSL
01372 733689                                    020 3219 8805
colin.mayes@aonhewitt.com               giles.abbott@capitalmsl.com

Notes to editors
In July 2013, Aon Hewitt called upon the EU to address asset transfer rules for cross-border pensions:

http://aon.mediaroom.com/index.php?s=25776&item=136719

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 66,000 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.