Aon has published an interactive guide for pension schemes and trustees, examining the various defined benefit consolidation options.
The paper Defined Benefit Consolidation: what are your opportunities? looks at the various commercial consolidation options, so trustees can see which is likely to be the most appropriate or viable course.
Aon says the paper is designed to help trustees improve both the efficiency and governance of their DB schemes.
Aon’s head of UK retirement policy Matthew Arends says: “Consolidation is a wide term which covers a number of options – most of which have been around for a while. But the Department for Work & Pensions’ 2018 White Paper, and subsequent consultation paper, highlighted the idea afresh and introduced the idea of both commercial consolidators and a potential framework for their authorisation and regulation.
“In our new interactive paper we have looked at the new breed of commercial consolidators in the context of other consolidation options, with the aim of giving trustees and sponsors some guidance on what may – or may not – be appropriate for them.”
He adds that rhe answer for each scheme will depend on its own objectives, goals and circumstances. “But overall we think that a focus on improving the efficiency and governance of DB schemes is most welcome and that the resulting focus on getting to the endgame for a DB scheme is also an important development.”