OREANDA-NEWS. December 10, 2015. Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE:AON), has commented on the Integrated Risk Management (IRM) Guidance issued today by the Pensions Regulator.

The Pensions Regulator has issued guidance for trustees of defined benefit (DB) schemes to help them integrate the key issues for member security of funding, investment and covenant. This builds on the 'Code of Practice on Funding Defined Benefits' schemes, issued in July 2014, and 'Assessing and monitoring the employer covenant', issued in August 2015.

John Coulthard, partner at Aon Hewitt said:
"We welcome the additional guidance from the Pensions Regulator.  However, although there are 13 questions at the start for trustees and employers to answer, there are many more buried throughout the document.  I believe that trustees and employers will need additional support to decide how to implement this in the proportionate way called for by the Pensions Regulator."

Zoe Taylor, principal consultant at Aon Hewitt explained:
"When advising on investment, I know my advice must be tailored to the client's circumstances. For example, that the level of investment risk taken is appropriate for the covenant and the funding strategy.

“Linking covenant, funding and investment is an integral part of Aon's ViewPoints approach. The best outcomes are achieved when they are driven by an understanding of our clients' situations, beliefs and bring all factors together to provide a comprehensive solution.“

Aidan O'Mahony, partner and Head of Covenant Advice at Aon Hewitt, said:
"This guidance puts covenant at the heart of a scheme's risk analysis, decision-making and contingency planning. I believe that this will lead to better security for member's benefits."