Risk
Health and benefits case study 1

 

ASATS Case Study: Health and Benefits Case Study 1


Client situation

Target company was a division of a large multi-national corporation.

The current benefit plans included defined benefit pension plans, supplemental executive retirement plans and retiree medical plans.

Challenge

Establish a benefit program for the new company at a lower cost and that is consistent with companies of similar size.

Maintain an equivalent benefit level in a defined contribution plan to replace the expensive defined benefit plans.

Aon solution

Negotiated pension and retiree medical plans out of the new company structure.

Provided a "substantially similar" benefit to the pension, but funded through an employer match to the 401(k) plan.

Significant savings to the new company and significant reduction of liabilities.