Challenging economic conditions have exacerbated the trend towards scheme closures as more and more employers struggle to justify final salary pension schemes. Closing a scheme is extremely sensitive and financial controls, timeliness and clear communication are essential to ensure that members’ interests are safeguarded. However, for trustees, this is a very under-researched area and focus is generally given to ongoing scheme management or scheme replacement.
Administering a scheme closure requires specialist discipline. Without this, unnecessary errors and omissions, delays and complications can occur, leading to spiralling costs and additional stress for scheme members. Now, more than ever, the need for specialist expertise is great. Aon Hewitt can help.
Aon Hewitt works with trustees to:
• Ensure the right benefits are received by the right members
• Efficiently cleanse, reconcile and reconstruct scheme data
• Make sure all scheme governance and legislative requirements are met
• Ensure scheme wind-ups are completed pragmatically, on time and within budget
• Drive schemes smoothly through the Pension Protection Fund (PPF) preparation and assessment periods
• Transfer data and schemes to the Financial Assistance Scheme (FAS) accurately and efficiently
• Ensure the smooth transition of scheme data to a specialist buyout provider
• Minimise uncertainty and anxiety through clear and timely communication with stakeholders
Our dedicated scheme cessation team offers expertise in the following areas:
• Ongoing day-to-day administration
• Data analysis and cleansing
• Liaison with specialist buyout providers
• PPF preparation and assessment period administration
• FAS work
• Formatting scheme data in line with PPF or buyout requirements
Last updated 23 April 2013
Aon Hewitt Limited is authorised and regulated by the Financial Conduct Authority.