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New Aon Hewitt Retirement Solution Simplifies Investment Management and Administrative Complexities Associated with Managing Defined Contribution Plans
Thursday, December 12, 2013
New Aon Hewitt Retirement Solution Simplifies Investment Management and Administrative Complexities Associated with Managing Defined Contribution Plans09:00 EST Thursday, December 12, 2013
SimPlus Savings? Solution Designed to Help Plan Sponsors and Fiduciaries Manage Their Fiduciary and Administrative Responsibilities and Improve Participants' Retirement Readiness
LINCOLNSHIRE, Ill., Dec. 12, 2013 /PRNewswire/ -- Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON), today announced the launch of SimPlus Savings?, a comprehensive solution that enables plan sponsors and plan fiduciaries to delegate certain fiduciary obligations and outsource administrative functions related to their defined contribution (DC) plans while still maintaining a line of sight into the strategic direction of their plans. SimPlus Savings expands Aon Hewitt's comprehensive suite of solutions that seeks to help plan sponsors improve their employees' financial wellness and enable them to implement new and sustainable benefits strategies, better manage their fiduciary obligations and leverage institutional purchasing power.
Through SimPlus Savings, Aon Hewitt offers plan sponsors a variety of services for their DC plans and can assume responsibility for implementing investment strategy, and plan investment management (including selection of plan investment menus). SimPlus Savings also features comprehensive administration solutions, such as DC plan recordkeeping, daily operations and transaction processing, and participant services (including online investment advice, managed accounts, brokerage, and customer service).1
"Many DC plan sponsors are responsible for managing hundreds of millions of dollars in investments, yet investment selection and oversight isn't their core business. In addition, heightened focus on fiduciary obligations, increased regulation and the desire to help workers meet their retirement needs have made managing DC plans increasingly complex," said Clinton Cary, partner and U.S. delegated chief investment officer at Hewitt EnnisKnupp, Inc. "For more than 25 years, Aon Hewitt has partnered with our clients to help ease the administrative burdens of managing a DC plan. SimPlus Savings enables us to expand that role by integrating these services with our comprehensive investment fiduciary oversight capabilities to help improve plan participants' financial readiness, reduce plan sponsors' risk and enhance plan governance."
SimPlus Savings is designed to help DC plan participants and sponsors through:
Simplified yet sophisticated investment options and participant help. SimPlus Savings uses Aon Hewitt's global investment consulting manager research team, which includes more than 100 dedicated researchers, to help improve diversification and optimize the financial health of employees by offering professionally constructed investment choices from best-in-class managers. SimPlus Savings makes available lower cost institutional investment options that can help reduce investment fees and create better outcomes for participants.
"SimPlus Savings streamlines the number of fund options available to participants to make investing easier and inherently improve diversification," said Craig Pearlman, partner and head of U.S. delegated product management and distribution at Hewitt EnnisKnupp, Inc. "The investment structure is supplemented by a broad spectrum of help to deliver the right balance of high-touch and high-tech support?from custom target date funds, to advice, to managed accounts. This ensures the solution meets the needs of a broad and diverse population with varying preferences."
Improved plan governance. Through SimPlus Savings, Aon Hewitt offers delegated investment management services, specifically related to certain fiduciary obligations to the DC plans. These services allow plan fiduciaries to share or delegate certain fiduciary obligations, including investment manager selection and oversight. Aon Hewitt will also provide consulting to plan fiduciaries to guide them when operating a solid governance process, provide fiduciary training to plan sponsors and investment committees, as well as take on the fiduciary responsibility for the implementation of investment strategy.
Fully managed investment implementation. To reduce the demands typically placed on the plan's investment committee, Aon Hewitt?through its Hewitt EnnisKnupp affiliate?will direct investment option selection, conduct ongoing daily monitoring of investments, and provide periodic reporting. Delegating these responsibilities to Aon Hewitt enhances speed-to-action and the ability to replace managers in a matter of days, not months, allowing plan sponsors to devote more time and attention to strategic initiatives.
Reduced cost for plan sponsors and workers. Recent Aon Hewitt research shows that more than three-quarters of employers have made efforts to reduce fund or plan expenses in their DC plans over the past two years.2 SimPlus Savings gives employees and employers the benefit of a more cost effective institutional solution, with reduced investment costs, and fixed participant-based fees for administration. Importantly, this is all delivered with complete fee transparency.
Better participant experience. Leveraging Aon Hewitt's participant research, SimPlus Savings offers participants a multi-channel experience with a behavioral finance-based design and approach. Aon Hewitt has made significant investments in technology across web, mobile and assisted channels to make retirement saving and investing easier and more intuitive for employees.
"Defined contribution plans have become the primary source of retirement income for many Americans, so the burden of saving for retirement has largely shifted to workers and many are falling short of meeting their financial goals," explained Beth Halberstadt, partner and business leader for SimPlus Savings at Hewitt EnnisKnupp, Inc. "Our solution enables workers to improve their financial future by making the investment process easier and more cost effective. The solution is then delivered using innovative techniques and technology to encourage participants to make smart financial decisions?inside and outside of the plan?which can ultimately facilitate better retirement outcomes."
Visit www.simplussavings.com to learn more.
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About Aon HewittAon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. For more information on Aon Hewitt, please visit www.aonhewitt.com.
About Hewitt EnnisKnuppHewitt EnnisKnupp, Inc., an Aon plc company (NYSE: AON), provides investment consulting services to over 470 clients in North America with total client assets of approximately $2 trillion. More than 270 investment consulting professionals in the U.S. advise institutional investors such as corporations, public organizations, union associations, health systems, endowments and foundations with investments ranging from $3 million to $700 billion. For more information, please visit www.hewittennisknupp.com.
About AonAon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 65,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world's best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon's global partnership and shirt sponsorship with Manchester United.
Certain investment options made available through the SimPlus Savings program are limited to qualified investors, which include most qualified defined contribution plans and are not available for 403(b) plans or Individual Retirement Accounts.
1 Brokerage services are offered through Hewitt Financial Services, LLC, member FINRA and SIPC. Online investment advisory and managed investment advisory account services are offered through Aon Hewitt Financial Advisors, LLC, with subadvisory services provided by Financial Engines Advisors L.L.C., both SEC registered investment advisers. DC plan investment management and investment consulting is offered through Hewitt EnnisKnupp, Inc., an SEC registered investment adviser. Recordkeeping, customer service, daily operations, and other plan benefit administrative services are offered through Hewitt Associates LLC and other affiliates.
2 Aon Hewitt 2013 Trends & Experience in Defined Contribution Plans.
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