Administration

Aon Divests Company Stock from 401(k)

Effective April 1, the Aon Stock Fund was discontinued as an active investment option in the plan.

By Rebecca Moore editors@plansponsor.com | July 24, 2017

In a Form 11-K filing with the Securities and Exchange Commission (SEC), Aon plc announced the divestment of company stock from the Aon Savings Plan.

According to the filing, effective April 1, the Aon Stock Fund was discontinued as an active investment option in the plan. After March 31, participants were not able to contribute or transfer any savings into the Aon Stock Fund (including employee contributions, Aon matching contributions, fund transfers-in, loan repayments, and rollover contributions).                    

Participants that contributed to the fund will need to select a different investment option or options. If the participant does not select a different investment option, any amounts that would normally have been directed to the Aon Stock Fund will be automatically re-directed to the applicable age-appropriate target-date fund (assuming retirement at age 65) in the plan.

On December 1, 2017, the Aon Stock Fund will be liquidated and removed from the plan. As of December 31, 2016, the company stock fund held a little more than $240,000,000 in plan assets.

In a statement to PLANSPONSOR, Aon said: “We have eliminated the option to invest in the company’s stock to encourage greater diversification of retirement savings.  Colleagues will reallocate their investment in the Aon Stock Fund into another, better diversified, investment option within the 401k plan.”

The form also noted that on February 11, Aon announced an agreement to sell its benefits and HR platform to Alight Solutions (formerly Tempo Acquisition, LLC, an entity formed and controlled by the Blackstone Group L.P.). The sale closed in May 2017. Impacted employees’ Aon Savings Plan account balances will be transferred to the new company’s plan, and they will cease participation in Aon’s plan.

SPONSORED MESSAGES