Pensions - Articles - Aon launches assessment for UK pension schemes

 Aon Hewitt has launched a free online Settlement Readiness Assessment, open to all UK defined benefit schemes. The test is designed to provide schemes with an overview of their readiness to move to a bulk annuity, with the results analysed to show how close a scheme could be to moving to a de-risking solution.

 Paul McGlone, partner at Aon Hewitt said:

 “For many pension schemes the use of a bulk annuity is inevitable at some stage in their future, whether that is five, 10 or 20 years away. But experience has shown that not all schemes are ready to take the opportunities when they arise - as illustrated in 2007/2008 when many missed the chance to make the most of attractive pricing. As more and more schemes close to future accrual and increase in maturity, they should be asking themselves whether they would be able to transact quickly should the right conditions arise.”

 The Settlement Readiness Assessment consists of 20 multiple choice questions on factors which will be particular to individual schemes. Based on the answers, Aon Hewitt will provide schemes with an indication of how well prepared they are to transact should the circumstances be right. Schemes will also be benchmarked against others that complete the survey.

 Paul McGlone, said:

 “Monitoring the current funding level of a scheme and the state of the market is always important but planning for a future transaction may be even more so. This assessment is free for any scheme in the country and will highlight how much work it may or may not have to do if a bulk annuity settlement is their end goal.”

 To complete the assessment visit: www.aonhewitt.com/settlementreadiness