Aon is to reduce the amount some employees must contribute to its defined contribution (DC) plan to qualify for an employer contribution, with the aim of making the scheme more attractive to staff.
From January 2008, all employees, regardless of age or seniority, will only have to contribute 2% of their monthly salary to gain an employer contribution of between 6% and 12%, depending on age.
Currently, staff in the DC plan contribute 2% for a 6% employer contribution if they are aged in their 20s, 3% for 8% in their 30s, 4% for 10% in their 40s and 5% for a 12% if they are above the age of 50. The firm’s contribution rate will remain the same and will continue to depend on the age of the employee.
The change means that it will be easier for staff to gain bonus employer contributions, as Aon puts 10% of any staff contribution made above the initial qualifying payment, into the pension.
The move follows Aon’s closure of its defined benefit (DB) scheme to all staff in April this year.
Michael Rose, director of HR reward and policy at Aon, said: “We are doing this because since the DB scheme has been closed, we have been working with employees to look at ways that we can be more creative and generous with the DC offering.”
Separately, Aon Consulting UK is piloting a ‘nine day fortnight’ to help staff with work-life balance.