More choice for members, more certainty for sponsors
Following the introduction of 'Freedom and Choice' for defined contribution (DC) pensions in April 2015, we have seen increasing numbers of members transfer out of defined benefit (DB) schemes to access these new freedoms. Sponsors and trustees have an important role to play in deciding what options to make available to members and how much member support should be in place.
Aon is well placed to help trustees and sponsors consider which member option solutions best meets their needs. We have a dedicated Member Options team comprising over 60 specialists, providing advice and support on the full range of member options, including flexible retirement and pension increase conversion exercises With this specialist knowledge, Aon have developed modelling tools to help schemes design the most effective exercise, given a scheme's objectives and membership profile. Furthermore, Aon’s Member Options team have advised on more exercises than any other consultancy in recent years. During 2019 alone, the team advised on well over 100 different projects and spent more than 33,000 hours on member options.
Aon has also developed the Aon Retirement Options Model (AROM) to help members make the right, informed choice at retirement and provide greater support during member option exercises. This tool was the first of its kind in the market and now has over 60 schemes live or in the process of setting up AROM. There are currently 22,000 members who have been given access.
Our 2020 Member Options Survey looked into the actions being taken by trustees and sponsors in relation to the increased flexibility. Read a summary of the Member Options Survey here.
Whether you are a trustee or a corporate sponsor, there are a number of areas where we can work with you to help you meet your objectives, including:
If you would like to find out more or discuss further, please contact your usual Aon contact or email us at firstname.lastname@example.org.