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Aon Hewitt issues call to action on DB scheme liability management
NYSE: AON

London, 20 March 2014 – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON), has said that yesterday's surprise Budget announcements offer liability management opportunities for sponsors of Defined Benefit (DB) pension schemes.

Ben Roe, head of liability management at Aon Hewitt said:
"As part of the proposed changes, the Government is consulting on whether transfers from DB to defined contribution (DC) arrangements should be banned in the future. This means individuals, if they wish, have a short window of opportunity to transfer their benefits to make sure that they can access their pension savings flexibly in the future. We expect this to lead to a spike in members transferring DB benefits to DC schemes over the next year.

"This presents an ideal window for scheme sponsors to offer members the chance to restructure their pension benefits. Making such offers can be in the interests of scheme members as well as scheme sponsors - the key is that any offer made to members complies with the Code of Good Practice for Pension Incentive Exercises, so that individuals can make a fully informed decision about how to take their pension benefits."

Ben Roe continued:
"However, companies may need to move fast. This spike in activity could lead to capacity issues in the IFA market, so the opportunity may only exist for companies that can act quickly."

 

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

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