UK - Aon Consulting has launched a new defined contribution product aimed at providing small and medium sized pension funds greater flexibility and cost effectiveness.
Aon Defined Contribution+, launched in partnership with Friends Provident and Prudential, is a package of services including communications, investment choices and guidance, member-specific online projections, and scheme monitoring and risk assessments.
These services can be supplemented by additional items such as member presentations/ advice, and non-pension benefits such as life assurance.
According to Aon, sponsors with bundled schemes are feeling disillusioned with their provider and want more flexibility with regard to investment guidance, better communication and online access to scheme information for members.
Paul Macro, head of DC at Aon Consulting, said: As was highlighted in our research, the DC market is currently not supplying its small to medium sized customers with everything they need and with the steady shift towards DC schemes there is a need for a product such as Aon Defined Contribution+ that will suit many schemes both before and after A-Day.
“Currently these employers must choose between potentially expensive unbundled schemes and bundled schemes whose low cost set up is achieved by sacrificing flexibility and the ability to offer members the information they need to exercise choice.
He added: “Through Aon Defined Contribution+ we intend to meet the demand for cost effective yet flexible scheme provision by combining these two elements to provide DC schemes which will increase employee appreciation and understanding, and reduce potential future liabilities for scheme sponsors.
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.