CHICAGO, Nov. 10 /PRNewswire-FirstCall/ -- Aon Consulting, the global human capital consulting organization of Aon Corporation (NYSE: AOC), today announced results of its Retirement Pulse Survey, conducted last month as a result of the economic turmoil. This survey addresses both defined benefit and defined contribution plans.

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Aon Consulting surveyed more than 125 U.S. organizations and found of those that reviewed their pension plans, 16 percent determined the economic turmoil will have a significant impact on plan funding and expense, and 40 percent said it will have some impact. Meanwhile, approximately one-quarter of respondents have not yet reviewed the impact on their pension plans, but intend to do so.

"Absent significant changes in the FASB and IRS rules, we anticipate the tumult will generate considerable changes in U.S. pension plans and their investment strategies," said Cecil Hemingway, leader of the U.S. Retirement Practice for Aon Consulting. "Approximately 40 percent of those surveyed noted they already have or plan to make changes to their benefits, including the potential of freezing the plan, the purchase of longer duration bonds, increasing the fixed income allocations in their pension funds, annuitizing a portion of their liabilities, or adding other investments, such as swap overlays, to their pension fund in response to the mayhem on Wall Street."

Of those surveyed that either decided not to implement changes to minimize pension risk, or had yet to research the alternatives, 42 percent said they investigated possible changes and decided against them; 30 percent have not yet investigated changes, but intend to do so; and 28 percent had not yet investigated changes and didn't expect to do so.

"Now more than ever, U.S. workers and their employers need to understand the tools and resources available to address volatility and know their rights and responsibilities," said Hemingway. "It's critical that employers review their investments, make sure fiduciary concerns are met and communicate appropriately to employees. More importantly, we believe companies need to fully understand the strategies they have undertaken and the risks inherent in them. In many cases, they should consider implementing a new investment philosophy that minimizes plan risk so it can withstand future market and business fluctuations."

As for defined contribution plans (such as 401(k) and 403(b) plans), 54 percent of the plan sponsors surveyed are communicating openly and continuously with plan participants, while 53 percent are confirming their fiduciary oversight and governance, as well as their commitment to monitor investments as a result of the current economic turbulence. However, at the same time, many organizations are suggesting workers take active steps to ensure appropriate asset allocations, such as considering professional investment advice (33 percent), making professional investment advice available (33 percent) and emphasizing the importance of asset allocation and diversification (28 percent).

In addition, 85 percent of those surveyed are comfortable that their fund lineup offers the appropriate risk return characteristics, while 11 percent are seeking diversification information and 4 percent have not reviewed their funds, but are relying on outside expert recommendations.

"In response to the financial turmoil and decreased asset values, many plan sponsors support our belief that it is important to seek independent professional advice to manage plan investments, control the costs of those investments and control the risks borne by participants," said Hemingway. "The results also confirm our belief that communication is key and, at the employee's discretion, the investment management of a participant account should be turned over to professionals whose understanding of the financial markets and the risk tolerance of an individual will increase the chances of a secure retirement."

About Aon Consulting

Aon Consulting Worldwide is among the top global human capital consulting firms, with 2007 revenues of $1.352 billion and 6,335 professionals in 117 offices worldwide. Aon Consulting is shaping the workplace of the future through benefits, talent management and rewards strategies and solutions. Aon Consulting was named the best employee benefit consulting firm by the readers of Business Insurance magazine in 2006, 2007 and 2008. For more information on Aon, please visit http://www.aon.mediaroom.com.

About Aon

Aon Corporation (NYSE: AOC) is the leading global provider of risk management services, insurance and reinsurance brokerage, and human capital consulting. Through its 36,000 colleagues worldwide, Aon readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Our industry-leading global resources, technical expertise and industry knowledge are delivered locally through more than 500 offices in more than 120 countries. Aon was named the world's best broker by Euromoney magazine's 2008 Insurance Survey. In 2008, Aon ranked highest on the Business Insurance ranking of the world's largest insurance brokers based on commercial retail, wholesale, reinsurance and personal lines brokerage revenues. Aon also was ranked by A.M. Best as the number one insurance broker based on brokerage revenues in 2007 and 2008, and was voted best insurance intermediary, best reinsurance intermediary, and best employee benefits consulting firm in 2007 and 2008 by the readers of Business Insurance. Sign up to receive Aon news alerts by email or RSS feed at: http://aon.mediaroom.com/index.php?s=58.

     Media Contact:
     Joe Micucci
     312-381-4786
     joe_micucci@aon.com

SOURCE Aon Corporation