LONDON 28 July 2014 – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE:AON), has announced the launch of ‘Pathway’, the new service for pension schemes wishing to carry out a buy-in or buyout, which it has developed in collaboration with the law firm Eversheds.  Pathway offers a complete solution, including pre-negotiated contract terms with insurers which reduce uncertainty and speed up risk transfers.

With Pathway, schemes are able to make a high level comparison of insurers’ terms at an early stage in the process, allowing them to develop an informed view of the differences between providers and of any factors that might have a significant impact on the transaction. As Pathway has been developed following discussions with insurers, it also enables them to be comfortable with the buyout process, freeing them to prioritise cases by committing to shorter turnaround terms than is the standard.

Dominic Grimley, principal consultant at Aon Hewitt, said:
“We have many years of experience in managing schemes through bulk annuity auctions and, in a busy market, it is more important than ever that a firm plan of action and clear objectives are adopted in order  to get the right deal at the right time. Annuity purchase involves a number of moving parts and our view is that anything that makes it more straightforward – including pre-negotiated and enhanced legal contracts – will be welcomed by the market.

“When managing a project onto Pathway, we first make certain that a bulk annuity is feasible, and then ensure that a collaborative approach is followed by all parties. Decision makers get early access to key information, with the result that schemes can shorten the process of purchasing an annuity and have more certainty of the outcome, while insurers are more willing to participate.”

Hugh Gittins, legal director at Eversheds, said:
“Having worked on a number of annuity purchases we are excited to be managing the legal aspects of Pathway as we believe it will bring real benefits to trustees in terms of legal protection and speed of execution.  By pre-agreeing contract terms with providers, so that legal advice is ‘on the stocks’ and ready to be issued, we are able both to add certainty to the negotiations and to remove delays that can otherwise result from the contract discussions.”

Key features of Pathway
- A clearly defined and shorter broking process, with robust project management
- Pre-negotiated, enhanced legal contracts, with legal advice ‘on the stocks’
- Comprehensive due diligence on providers, enabling clear comparison of the offers available on more than just pricing and brand.
- A fixed fee, giving clarity on cost

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 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, best reinsurance intermediary, best captives manager, and best employee benefits consulting firm by multiple industry sources. Visit aon.com for more information on Aon and aon.com/manchesterunited to learn about Aon’s global partnership with Manchester United.

About Eversheds LLP
Eversheds LLP and its worldwide offices have over 4,000 people who provide services to the private and public sector business and finance community. Access to all these services is provided through 53 international offices in 30 jurisdictions. Eversheds combines local market knowledge and access with the specialisms, resources and international capability of one of the world's largest law firms.

www.eversheds.com