United Kingdom

Scheme funding and accounting

Good quality scheme funding negotiations are vital to any defined benefit plan. Aon Hewitt’s team of scheme actuaries ensure that the process runs smoothly for both trustees and scheme sponsors.

For trustees

Our scheme actuaries use the latest thinking on valuation methods, longevity trends, financial assumptions and calculations. We combine this with our own expertise to deliver effective, accurate triennial valuations.

But scheme funding doesn’t start and end with a three-yearly review. It’s also about ongoing stability. Getting funding right means considering integrated risk management, long-term objective setting, liability management exercises and other factors.

Whether you are carrying out a three-year valuation or monitoring your on-going scheme funding, Aon Hewitt is perfectly placed to help. We use a bespoke toolkit to help us:

  • Discover your objectives
  • Develop your strategy
  • Deliver projects
  • Monitor your funding position

For sponsors

Aon Hewitt has a dedicated consulting team that offers funding advice to corporates negotiating with Trustees. Our ‘five-lever framework’ makes sure that sponsors consider all available options when deciding how to achieve their objectives. This is a particularly useful model to refer to in meetings, or when reviewing a strategy.

  1. Understanding the investment strategy
  2. Remove unnecessary prudence from assumptions
  3. Optimise cash contribution parameters
  4. Weave in liability management options
  5. Use alternatives to cash contributions

Accounting

Aon Hewitt provides pension accounting support to around 500 UK employers, supporting them in producing pension accounting disclosures.

As one of the largest firms in the UK, Aon has unrivalled insight into evolving market practice, auditor views and trends. We meet regularly with all of the Big 4 accounting firms and have strong relationships with their technical teams.

Our accountants work with any recognised accounting standards to deliver:

  • Detailed advice on setting assumptions and the calculation methodology underlying accounting disclosures
  • Advising on how best to present the results in a way that meets the employer's specific circumstances.

We also carry out ongoing benchmarking surveys that give trustees and sponsors a real-time picture of market practice. This insight allows us to understand how your assumptions and results will be perceived and where there might be flexibility to adjust them.

Our market leading Risk Analyzer software delivers real-time updates on schemes’ financial position. It can be used to interactively model the impact of changing assumptions on your balance sheet and Profit and Loss account, and bespoke benchmarking against a peer group

For more information on how our scheme funding and accounting services can support your scheme, email talktous@aonhewitt.co.uk or call 0800 279 5588



Aon Hewitt Limited is authorised and regulated by the Financial Conduct Authority.

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Scheme Funding and Accounting



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