CHICAGO, Dec. 3, 2020 /PRNewswire/ -- Aon
plc (NYSE: AON), a leading global professional
services firm providing a broad range of risk, retirement and
health solutions, will launch its pooled employer plan Jan. 1 after registering it with the U.S.
Department of Labor today. Aon expects more than half of U.S.
employers to merge their traditional 401(k)s into pooled employer
plans during the next decade, according to a
report.
The Aon PEP will start the year with two employers in January
and is scheduled to transition three additional clients through
April. These initial employers are from a diverse mix of industries
that include aerospace, chemical, music production, pediatric
medicine and petroleum. Participants will benefit from higher
performing, more efficient 401(k) plans.
"Based on overall value, we predict that many more employers
will transition to PEPs in the coming years," said Paul Rangecroft,
North America retirement practice
leader for Aon. "The benefits of such a move – lower costs,
reduced time commitment from corporate staff, improved governance
and high-quality retirement planning options -- will be difficult
to match in a single employer solution."
The combined scale in pooled employer plans will help
beneficiaries lower plan costs, including record-keeping and
investment management fees. Beneficiaries also will have easier
access to investment tools and education services to better prepare
for retirement.
From the employer perspective, pooled employer plans will reduce
staff time dedicated to plan management, compliance and governance
(i.e., elimination of many tasks such as government filings, plan
audits, etc.). Pooled employer plans will also reduce fiduciary and
litigation risks.
"The Aon PEP provides the efficiency and scale of a pooled plan,
while maintaining individual employer autonomy to define matching
and other contribution levels, and various key plan design
features," said Rick Jones, partner
for Aon's Retirement Solutions.
Aon leaders will host a webinar at 2
p.m. CT Tuesday, Dec. 8, titled: "Pooled Employer
Plans, SECURE 2.0, and the Future of Retirement Security," which
will feature a policy discussion on how pooled employer plans will
transform retirement. Prominent Washington, D.C. speakers include U.S. Senator
Ben Cardin of Maryland; Payson
Peabody, tax counsel for the U.S. House Committee on Ways
and Means; Preston Rutledge, founder
and principal at Rutledge Policy Group and a former assistant
secretary of labor, Employee Benefits Security Administration; and
moderator Lynn D. Dudley, senior
vice president, global retirement & compensation policy,
American Benefits Council.
For more information about the Aon PEP, click here or email
retirement@aon.com.
About Aon
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.
Follow Aon on Twitter and LinkedIn. Stay up
to date by visiting the Aon Newsroom and hear from our
expert advisors in The One Brief. Sign up for news
alerts here.
Media Contacts:
Robert
Elfinger
robert.elfinger@aon.com
+1 312-381-0071
Sadie Schwarm
sadie.schwarm@kemperlesnik.com
+1 217-502-4521
View original content to download
multimedia:http://www.prnewswire.com/news-releases/aon-pooled-employer-plan-opens-with-its-first-plan-sponsors-in-january-301185366.html
SOURCE Aon plc