Aon : Hewitt says new guidance from the Pensions Regulator provides welcome advice on covenant issues

LONDON, 13 August 2015 - Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE:AON), has said that new guidance issued by the Pensions Regulator today offers welcome clarification on a number of issues related to employer covenant.

The guidance, which is focused on assessing and monitoring the employer covenant of pension schemes, consolidates and updates much of the formal and informal guidance on covenant that the Regulator has issued over the past few years.

Aidan O'Mahony, partner at Aon Hewitt said
"While there is nothing radical in this update, there is an increased emphasis on taking an integrated approach to managing scheme risks - which is looking at covenant, funding and investment risks in a holistic manner. This is something we very much welcome."

The guidance covers the Regulator's new statutory objective around 'sustainable growth' and notes that any investment costs associated with growth should be shared across all stakeholders, with trustees protecting the pension scheme against downside risk. There is also more detail on how to analyse non-associated multi-employer schemes and not-for-profit employers.

Aidan O'Mahony continued:
"This guidance provides very useful checklists for trustees and advisors with more than 20 worked examples of assessing covenant in different situations. The guidance also brings clarity around when and how trustees should look to commission external covenant advice. Overall, this will help trustees, employers and covenant advisors to identify and analyse the key covenant risks."

ENDS

Notes to Editors

About Aon
Aon plc (NYSE:AON) is a leading global provider of risk management, insurance brokerage and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 9,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative risk and people solutions. For further information on our capabilities and to learn how we empower results for clients, please visit: http://aon.mediaroom.com/

Follow Aon Hewitt on Twitter: https://twitter.com/AonHewittUK
Sign up for News Alerts: http://aon.mediaroom.com/index.php?s=58

Media Contact
For further information please contact:
Colin Mayes Marina Jane Sanchez
Aon Hewitt CNC
01372 733689 020 3219 8811
colin.mayes@aonhewitt.com marina.jane-sanchez@cnc-communications.com