LONDON (6 November 2018) – Aon, the leading global professional services firm providing a broad range of risk, retirement and health solutions, has welcomed the Department for Work & Pensions’ (DWP) formal consultation on enabling Collective Defined Contribution (CDC) pension schemes in the UK.
Kevin Wesbroom, senior partner at Aon, said:
"This consultation is a sound, proportionate approach to introducing new legislation that can improve retirement outcomes for many. As the Minister for Pensions has said, a robustly designed and appropriately regulated CDC scheme is an innovation for the benefit of savers and business alike. The approach taken to legislation is welcome, since it has clearly taken on board that the UK can learn from overseas CDC schemes, but does not have to slavishly follow them."
Matthew Arends, partner at Aon, said:
"The consultation has 25 questions, and we believe we can offer sound responses to all of the points raised. This is based on the extensive analysis, modelling and development work we have carried out both for ourselves and for Royal Mail. The consultation offers an opportunity to rebut the unsubstantiated claims that many of the naysayers have put forward repeatedly and gives us a unique opportunity to show why the positives we have identified in CDC, outweigh the challenges noted in the consultation."
Kevin Wesbroom continued:
"The consultation is well directed and picks up on many of the attractions of CDC schemes. Namely that it offers a savings and retirement income option within one package, the potential for higher investment returns, the sharing of longevity risk between members, together with a robust retirement solution for people who are uncomfortable making complex financial decisions at the point of retirement.
“We firmly believe that the challenges noted are surmountable and we will do all we can to support the speedy introduction of a sound, robust regime that will allow these schemes to flourish, and to deliver sustainable, affordable and secure future retirement arrangements."
For further information please contact:
Colin Mayes Tommy Cooper
Aon Kekst CNC
01372 733689 020 37551 641
Notes to Editors
Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
Aon announced in May 2018 it will retire the business unit brands of Aon Benfield and Aon Risk Solutions, which follows the retirement of the Aon Hewitt business unit brand in 2017. This move was designed to increase the rate of innovation across the firm and make it easier for colleagues to work together to bring the best of Aon to clients. Aon has five specific global solution lines: Commercial Risk Solutions, Reinsurance Solutions, Retirement Solutions, Health Solutions and Data & Analytic Services.
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