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| Version 0 | Version 1 |
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| Aon plans to cut pension payments | Aon plans to cut pension payments |
| (about 1 hour later) | |
| The British arm of US insurance firm Aon plans to reduce its pension contributions, in the face of challenging economic conditions. | The British arm of US insurance firm Aon plans to reduce its pension contributions, in the face of challenging economic conditions. |
| Aon issued a statement about such plans in response to a story in the Financial Times saying the firm aims to cut standard employer contributions. | Aon issued a statement about such plans in response to a story in the Financial Times saying the firm aims to cut standard employer contributions. |
| Effectively workers wishing to maintain their pension level will have to contribute more of their salaries. | Effectively workers wishing to maintain their pension level will have to contribute more of their salaries. |
| Aon Limited is involving employees in a two-month consultation on the plan. | Aon Limited is involving employees in a two-month consultation on the plan. |
| The firm said it had made the move to cut costs and protect the business in "challenging conditions". | The firm said it had made the move to cut costs and protect the business in "challenging conditions". |
| The Financial Times quoted chief executive Peter Harmer saying some workers would see the move as a salary cut, since more money would have to be set aside to maintain their pensions. | The Financial Times quoted chief executive Peter Harmer saying some workers would see the move as a salary cut, since more money would have to be set aside to maintain their pensions. |
| "Many companies are looking at ways of reducing their fixed costs, examples being pay freezes, reduced hours, four-day weeks and enforced sabbaticals on greatly reduced levels of pay - all of them short-term fixes," said the firm in its statement. | "Many companies are looking at ways of reducing their fixed costs, examples being pay freezes, reduced hours, four-day weeks and enforced sabbaticals on greatly reduced levels of pay - all of them short-term fixes," said the firm in its statement. |
| 'Longer term' | |
| The company added that its approach was to take a "different, longer term view". | The company added that its approach was to take a "different, longer term view". |
| BBC business correspondent Nick Cosgrove said Aon had been putting 12% of employees' pay into the pensions pot but that the new arrangements would see that capped at 6%. | |
| Aon said while it was lowering standard employer contributions, it was offering to match contributions "up to a certain level, depending on an employee's age group". | Aon said while it was lowering standard employer contributions, it was offering to match contributions "up to a certain level, depending on an employee's age group". |
| "Put simply, the more an employee contributes, the more Aon will match, up to specified level". | "Put simply, the more an employee contributes, the more Aon will match, up to specified level". |
| With share prices down sharply, Aon is far from alone is seeing the value of its pensions being hit in the wake of the global financial slowdown. | With share prices down sharply, Aon is far from alone is seeing the value of its pensions being hit in the wake of the global financial slowdown. |