Aon Hewitt Advises Pension Schemes on UK Coal Restructuring
LONDON, – Aon Hewitt, the global human resources solutions business of Aon plc (NYSE:AON), has announced that it advised the Industry-Wide Mineworkers’ Pension Scheme and the Industry-Wide Coal Staff Superannuation Scheme on the restructuring announced this morning by UK Coal PLC.
Under the terms of the restructuring, UK Coal has been split into separate mining and property businesses. The mining business will continue as employer sponsor of the pension schemes. In return for giving up any potential claim against the property business, the two pension schemes have a 75.1 per cent shareholding in the new property business, Harworth Estates. The pension schemes have also injected £30m of capital into Harworth Estates to ensure that it has the necessary funds to develop the properties and thereby achieve the maximum value for the pension schemes in the long term. Overall, the restructuring has helped to protect the pension benefits of the schemes’ 6,800 members.
Donald Duval, partner at Aon Hewitt and actuary to the pension schemes said:
"The split of the business, with the pension schemes taking the majority share in the property business, is an innovative solution to the problem of funding the pension schemes while allowing the companies to invest in the business.
“This is an excellent outcome for the business, the trustees and the members – particularly as the alternative might well have been the schemes entering the Pension Protection Fund, which would have meant much-reduced benefits for the members.”
About Aon Hewitt
Aon Hewitt is the global leader in human resource solutions. The company partners with organisations to solve their most complex benefits, talent and related financial challenges, and improve business performance. Aon Hewitt designs, implements, communicates and administers a wide range of human capital, retirement, investment management, health care, compensation and talent management strategies. With more than 29,000 professionals in 90 countries, Aon Hewitt makes the world a better place to work for clients and their employees. For more information on Aon Hewitt, please visit www.aonhewitt.com.
Sign up for News Alerts: http://aon.mediaroom.com/
Follow Aon Hewitt on Twitter @AonHewittUK
Aon 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 61,000 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.
If you elect to comment or engage with our content via third-party social media websites, you authorize Aon to have access to certain social media profile information. Please click here (http://www.aon.com/about-aon/privacy.jsp) to learn more about information that may be collected when using these tools on Aon.com
This news content was configured by WebWire editorial staff. Linking is permitted.