The Aon Ireland MasterTrust

Transcription

1 Aon Hewitt The Aon Ireland MasterTrust Expert guidance for the Defined Contribution journey Risk. Reinsurance. Human Resources.

2 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. For further information on our capabilities and to learn how we empower results for clients, please visit:

3 Contents Foreword by Rachael Ingle 2 Key Retirement Priorities 4 What is The Aon Ireland MasterTrust? 5 Service delivered by experts 6 Unique member experience - empowering better decision making 7 Robust Investment Design 8 Education and information 10 Why choose The Aon Ireland MasterTrust? 11 Contact Us 12

4 Foreword Rachael Ingle Managing Director It s no secret that the Irish pension landscape is going through a period of evolution. In recent years, we have seen sizeable shifts in both defined benefit (DB) and defined contribution (DC) pensions and it is inevitable that more change is coming down the line. At the same time, the Pensions Authority has stated that it wishes to reduce the number of DC plans to close to 100, whilst the Government has confirmed its intention to introduce a universal pension plan for all workers in Ireland. The cost of the State pension is also continuing to escalate and, with life expectancy increasing, it will need to adapt in order to stretch further and further. DC pensions offer a simplified retirement solution for employers in terms of funding requirements, but in this period of transition, being able to understand and respond effectively to members pension needs is more important than ever before. However, meeting the diverse needs of employees, across four generations, is proving a complex challenge for many companies, impacting workforce management and pension planning activities. Within a diverse and demanding workforce, employee benefits are playing an ever-increasing role in talent acquisition and retention, and employers are expected to offer their employees a greater level of pension benefit support. Ensuring employees have access to quality investment solutions and supporting education, throughout their retirement journey, has become a key priority for employers, who are feeling pressure to ensure employees can make and continue making informed decisions that support their evolving retirement needs. Workplace priorities are also going through a broader period of change and transition, from both a strategic and operational perspective. With Global Data Protection Regulations (GDPR) enforced from May 2018, many companies are finding themselves navigating an important-butconfusing period of increased operational burden. While navigating this period of change may feel like a challenge, The Aon Ireland MasterTrust looks to address the pension risk, governance and administrative issues, whilst simultaneously increasing the quality of service, and potential retirement outcomes, for employees. The Aon Ireland MasterTrust ( the MasterTrust ) is Aon s multi-employer, DC solution designed to meet employees modern and evolving pension needs. With our recognised high standard of investment advice, we have developed a retirement umbrella solution that aims to protect employees, and improve pension scheme governance, simultaneously. 2

5 It gives employees direct access to our professionally managed master trust, investment expertise and bulk buying power, exceptional administration, online platforms, and excellent member communications. Like all of Aon s global solutions, The Aon Ireland MasterTrust is designed to meet the highest standards to ensure employers and employees receive value and a personal experience, at all times. The Aon Ireland MasterTrust not only gives you access to great value and high standard investment management, but its governance framework ensures that many of the current day-to-day costs are shared amongst many employers (with an option for members to contribute towards these costs too), rather than shouldered by your organisation, alone. This means reduced audit, legal and trusteeship costs for you, minimised risk and costs associated with changing legislation and the elimination of trustee meetings. At Aon, we empower results by working tirelessly to discover how we can bring real value to you and to your business, within an ever-changing market. But for us, it s more than just talking the talk. The Aon Ireland MasterTrust is designed to meet the highest standards to ensure employers and employees receive value and a personal experience, at all times. We will follow through on our promises at every stage of the journey, supporting you and your employees today and tomorrow. Rachael Rachael Ingle Managing Director, Aon Hewitt 3

6 Key Retirement Priorities Defined Contribution (DC) pensions are set to become an increasingly important source of retirement income for Irish retirees, a trend which is expected to continue into the future. With employee needs continuously evolving to meet this trend, it is crucial that employers place an increased focus on the governance, and performance, of their DC schemes. With The Aon Ireland MasterTrust, employers can feel confident that their pension arrangements are designed in a way that meets key priorities, and empowers members to make decisions to achieve the best possible outcomes for their future. What are the key pension priorities for employers and employees? Meeting these priorities with a master trust What do employers want? Value both for members and for the employer spend Improve pension scheme governance by employing professional experts, who are fully compliant with the regulatory regime (without increasing costs) Robust investment options, to drive better outcomes for members A positive employee experience, with strong customer service, education and support A retirement solution that meets the needs of different member populations Future-readiness, with leading edge technology, innovation and development What do employees want? A steady and secure income for retirement Sensibly-priced pension products On-going support with investment decisions, to build a healthy retirement fund A clear, engaging, and flexible member experience, with suitable tools and supports A focus on better employee education to assist employees with decision making Joining a master trust is a simple step employers can take to: Successfully meet evolving priorities Improve their scheme governance and performance, and Ensure monitoring and reporting requirements are met 4 4

7 What is The Aon Ireland MasterTrust? The Aon Ireland MasterTrust is a multi-employer, occupational, trustbased pension scheme, where each employer has its own section within one master trust. Decisionmaking is retained by a professional trustee board, responsible for investment strategy, fund selection, administration features, and delivery of high-performing communication tools. Within The Aon Ireland MasterTrust, employers still retain control of decision-making on items like benefits and contribution levels. The MasterTrust empowers employers to successfully improve pension scheme governance and potentially deliver better outcomes for their employees. It gives members access to a professionally-managed occupational pension scheme, whilst also helping to minimise administrative workloads and costs. The MasterTrust supplies employers with the tools required to respond effectively to increasingly frequent, and complex, pension developments. Its robust investment design, coupled with a service delivered by experts, creates a unique member experience which brings tangible benefits to the employer and member alike. Member experience is powered by cuttingedge tools and technology, which also play a critical role in driving engagement. In addition, employers have the option to avail of our leading edge DC Analytics Tool. The DC Analytics Tool provides deep insight into member behaviour and, in turn, potential retirement outcomes, bringing real support to workforcemanagement objectives. The MasterTrust helps address challenges and concerns around cost, risk, time, investment design, and governance issues associated with retirement planning. It combines Aon s Irish and global expertise, with its knowledge of how best to design the most advantageous investment structures, helping members to make informed savings and investment decisions. Our services The Aon Ireland MasterTrust skilfully combines Aon s local and global expertise in DC pensions, our market-leading investment knowledge, and our credentials in governance framework-building. We offer a service delivered by experts and, with their guidance, the MasterTrust aims to deliver better outcomes for members today and in the future. Service delivered by experts Unique member experience The Aon Ireland MasterTrust On-going education Robust investment design 5

8 Service delivered by experts The Aon Ireland MasterTrust is managed by a professional and experienced trustee board, which offers governance and operational oversight, giving employers total reassurance that members will be supported continually. The design of the MasterTrust allows it to comply fully with current, and continuously evolving, regulatory requirements; ensuring members interests are first and foremost. The Aon Ireland MasterTrust provides a complete and fully-managed service for employers and members alike, incorporating: Dedicated transition management support, ensuring a smooth transition from existing administrators and providers Asset transition, managed by one of the world s leading investment consultants A fully-automated, online enrolment solution Quality communications, education, and support Service excellence Fully-managed transition process Single administration platform Education and information 6

9 Unique member experience - empowering better decision making It can be a challenge for members to identify the right times, during their pension journey, to take action. It can also be difficult to understand the pension benefits they are likely to receive upon retirement. These perceived barriers can potentially limit their ability to make informed retirement decisions. The Aon Ireland MasterTrust addresses these challenges using Aon s unique, and innovative, tools and supports, which include: Intelligent and timely trigger-based communications, prompting members to make informed investment decisions at the right time A wealth of online resources, including educational materials and videos Interactive financial projections Our communication tools are effectively supported by a comprehensive communications strategy, providing members with targeted, age-related information and education, available from the time they join the MasterTrust, right through to retirement. 7 7

10 Robust investment design Many members of DC schemes only have access to limited and simplistic investment options, which may not actually be suitable for their individual needs. In contrast, The Aon Ireland MasterTrust combines Aon s global investment management capabilities, with the strengths of our independent manager research teams, to provide members with access to a wealth of flexible investment opportunities, including: Aon-designed funds Alternative lifestyle strategies Finely-tuned default fund strategies White-labelled self-select funds Our MasterTrust provides a suite of comprehensive investment reports and fund factsheets, which equip members with the information they need to make the most appropriate investment decisions for their future retirement income. 8

11 Potential for lower costs Broader range of investment options Greater access to leading investment expertise Greater flexibility DC futurereadiness Strong governance structures Increased diversification Speed of action Best-in-class asset managers 9

12 Education and information - to support your members retirement journey Aon understands the importance of providing timely information and cutting edge tools, to educate members throughout their retirement journey. The Aon Ireland MasterTrust offers: Warm-up communications A Welcome pack A Communications toolkit Access to a purpose-built website, where members can manage their Retirement Account A customised member specific pension projection facility A suite of educational videos Information leaflets Investment guides and documentation Workplace drop-in clinics Industry-leading investment options Personalised, illustrated benefit statements Aon is committed to ensuring members receive all the assistance they need and aims to achieve better member outcomes for their retirement. 10

13 Why choose The Aon Ireland MasterTrust? The Aon Ireland MasterTrust Robust governance structure Positive employee experience - fully integrated employee engagement tools Flexible online savings platform Value for money and employer spend Full support for design and implementation Future readiness and innovation Investment solution aiming to achieve better member outcomes 10 11

14 Contact us For further information on The Aon Ireland MasterTrust, please contact your local Aon Hewitt consultant, visit or contact Shane Horgan AIIPM Aon Hewitt Retirement & Investment Hibernian House, Building 5200 Cork Airport Business Park Co. Cork T12 FDN (0) Martin Condon FIIPM Aon Hewitt Retirement & Investment Block D, Iveagh Court Harcourt Road Dublin 2 D02 VH (0) martin.condon@aonhewitt.com

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16 Important: The Aon Ireland MasterTrust is provided by Aon Hewitt (Ireland) Limited trading as Aon Hewitt which is regulated by the Central Bank of Ireland. Registered in Ireland No Registered office: Block D, Iveagh Court, Harcourt Road, Dublin 2, Ireland. Aon Hewitt Limited IRL Investment Branch which is the investment adviser to the Trustee of The Aon Ireland MasterTrust is a registered branch of Aon Hewitt Limited. Registered in the Republic of Ireland No The Central Bank of Ireland has a supervisory role in respect of Aon Hewitt Limited IRL Investment Branch. Aon Hewitt Limited Registered in England & Wales No Registered office: The Aon Centre, The Leadenhall Building, 122 Leadenhall Street, London EC3V 4AN, United Kingdom. Aon Hewitt Limited is authorised and regulated by the Financial Conduct Authority in the UK. Directors: Michael Clare (British), Andy Cox (British), William Durston (British), Rachael Ingle (Irish) and Stephen Philp (British). Hewitt Risk Management Services Ltd (HRMSL) which is authorised and regulated by the Financial Conduct Authority in the UK provides Delegated Investment Management Services to the Trustee of The Aon Ireland MasterTrust.