New Target Benefit Pension Plan for Regina Police Service Shows That Collaboration Yields Results, Says Aon Hewitt

Tue Jun 3, 2014 7:28pm EDT

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New Target Benefit Pension Plan for Regina Police Service Shows That Collaboration Yields Results, Says Aon Hewitt

With Assistance From Aon Hewitt, Regina Police Service Develops a Landmark Pension Plan for More Than 500 Police Officers and Staff

TORONTO, ON--(Marketwired - June 03, 2014) - Unveiled today in Regina, a new target benefit plan that will provide retirement coverage for the 500-plus officers and civilian staff of the Regina Police Service is an example of how collaboration among unions, employers and regulators is changing the landscape for pension reform in Canada, says Aon Hewitt, the global human resources business of Aon plc (NYSE: AON). As nearly every jurisdiction in Canada is now considering regulatory reform to help employers and employees improve the sustainability of their pension plans, the new Target Retirement Income Plan (TRIP) for the Regina Police Service comes as the result of a co-operative effort among all parties and their shared commitment to finding a pension solution that works for sponsors and participants alike.

Throughout the process of developing the TRIP, Aon Hewitt acted as the trusted adviser and link between the Regina Board of Police Commissioners (the employer) and Regina Police Service members, and provided information and support to the Saskatchewan Financial and Consumer Affairs Authority (the provincial pension regulator). The result: a target benefit plan that provides cost certainty while still providing lifetime pension benefits to members.

One of the strengths of the target benefit model is that a variety of design alternatives are available -- one size does not fit all.

"This was a real collaboration, and a testament to the strength of a flexible, co-operative model for pension plan development," said Troy Milnthorp, Associate Partner, Retirement, for Aon Hewitt, which as plan actuary and consultant was involved through all aspects of the TRIP, from options review and plan development to advice on governance and implementation. "We were continually impressed by the effort and desire of all parties to work together and come up with a mutually agreed-upon solution. With all the unrest in pensions across the country and the world, it was nice to see that teamwork does pay off."

"I'm proud of the problem-solving approach our team took toward the challenges with our pension plan," saidĀ Evan Bray, President of the Saskatchewan Federation of Police Officers and former President of the Regina Police Association. "Our new plan, thanks to the guidance of Troy and Aon Hewitt, will ensure a strong pension benefit for all our Regina members."

"We also want to acknowledge the key role played by Aon Hewitt in this process," added Bob Morin, Deputy Chief for the Regina Police Service. "Their experts helped inform the Working Committee at every step in this multi-year process: from defining the problem to building an amenable, sustainable solution, which is already garnering national attention."

Highlights of the TRIP include:

  • Lifetime pension payable to members
  • Bridge benefit payable until age 65
  • Fixed contribution rates for both members and employer
  • Earliest unreduced retirement date of rule of 80
  • Ad-hoc Cost of Living Adjustment (COLA)

"We applaud the way all parties worked together to develop a sustainable pension plan for the men and women of the Regina Police Service," said Karen Hall, Leader of Aon Hewitt's Target Benefit Plan Task Force. "In this case, the parties agreed on a target benefit plan design. Of course, target benefit plans are not for everybody, but the lesson of Regina is that working together to develop innovative solutions to pension challenges can produce results."

About Aon Hewitt

Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. For more information on Aon Hewitt, please visit www.aonhewitt.com.

About Aon

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 65,000 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.

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Media Contact:
Alexandre Daudelin
+1.514.982.4910
alexandre.daudelin@aonhewitt.com

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