Delegated Pension Manager
What is Delegated Pension Manager?
Delegated Pension Manager (DPM) is a comprehensive approach to pension plan management that allows plan sponsors to outsource, co-source, or even in-source management of key investment, actuarial and administrative roles on behalf of a client, their objectives, timelines and preferred risk level.
Why is DPM Important?
Due to changing regulations and increasing market volatility, pension plan management has become more complicated. As a result, more plan sponsors are revisiting their overall pension strategy, implementing dynamic investment policies, and executing partial or full liability settlements.
However, traditional pension plan management approaches often lack the agility required to manage a plan through the complexities of today’s landscape efficiently. This can result in poor coordination, inconsistent advice, and slow execution of a sub-optimal strategy.
What are the Benefits of Delegated Pension Manager?
A DPM approach to pension plan management provides plan sponsors with a single point of contact to integrate and execute the strategies needed to take them from today to their desired future state. Delegated pension management can be tailored to best fit an organization’s needs and strengths, consolidate vendors and can lead to time — and fee — savings.
How Does Aon’s DPM Work?
Integrated Strategy Development
Aon’s DPM solution provides integrated, end-to-end pension plan management via streamlined communication and agile execution. With your approval, Aon executes investment, actuarial and administrative roles and communicates with you every step of the way. We consolidate vendors and work to save you time and reduce fees.
Experience to Make it Happen
With 550 clients1 and $150.3 billion in total assets under management2 (as of December 31, 2022), we leverage our global scale while also delivering local knowledge, flexibility and customized solutions.
DPM gives our clients access to Aon’s collective scale and to alternative asset classes that typically are not available based on a plan’s standalone asset size. These potential fee savings and diversification benefits are even more important in a volatile market.3
Flexible and Customized Approach
We will develop a customized solution to help you navigate your desired future state, whether full plan termination or a more sustainable, ongoing pension management strategy. DPM can be fully outsourced to us for complete management of your pension plan, co-sourced to retain certain functions in-house or in-sourced to use Aon’s powerful risk management tools.
550
With 550 clients and $150.3 billion in total assets under management (as of December 31, 2022), we leverage our global scale while also delivering local knowledge, flexibility and customized solutions.
DPM's All-In Service Model Delivers Benefits
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Strategy
Integrating investments, actuarial and administration strategy
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Investments
Expanding opportunity set, fiduciary responsibility and increasing fees
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Actuarial
Managing cost and volatility of unfunded liability
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Administration
Overcoming limited internal resources
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Compliance
Meeting increased governance and compliance burdens
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Liability Settlements
Strategizing, coordinating and executing on settlement strategies
[1] As of 12/31/2022, total delegated global client count includes global clients which maintain a discretionary investment management agreement. [2] As of 12/31/2022, total assets under management represents $150.3 B in global discretionary assets under management advised by Aon Investments USA Inc ($119.0 B) and its global affiliates. [3] The information presented reflects estimated fees and potential savings which may or may not be achieved. There is no guarantee that the projected estimated savings will be achieved if you should select AIUSA and/or its affiliated entities to provide services to you. Diversification does not ensure a profit nor does it protect against loss of principal. Diversification among investment options and asset classes may help to reduce overall volatility.The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only and should not be considered investment advice. Investment advice and consulting services provided by Aon Investments USA Inc. (“AIUSA”). The information contained herein is given as of the date hereof and does not purport to give information as of any other date. The delivery at any time shall not, under any circumstances, create any implication that there has been a change in the information set forth herein since the date hereof or any obligation to update or provide amendments hereto. This document is not intended to provide, and shall not be relied upon for, accounting, legal or tax advice or investment recommendations. Any accounting, legal, or taxation position described in this presentation is a general statement and shall only be used as a guide. It does not constitute accounting, legal, and tax advice and is based on AIUSA’s understanding of current laws and interpretation. This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The comments in this summary are based upon AIUSA’s preliminary analysis of publicly available information. The content of this document is made available on an “as is” basis, without warranty of any kind. AIUSA disclaims any legal liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. AIUSA. reserves all rights to the content of this document. No part of this document may be reproduced, stored, or transmitted by any means without the express written consent of AIUSA.Aon Investments USA Inc. is a federally registered investment advisor with the U.S. Securities and Exchange Commission. AIUSA is also registered with the Commodity Futures Trade Commission as a commodity pool operator and a commodity trading advisor, and is a member of the National Futures Association. The AIUSA ADV Form Part 2A disclosure statement is available upon written request to: Aon Investments USA Inc.200 E. Randolph Street Suite 700 Chicago, IL 60601 ATTN: Aon Investments USA Inc. Compliance Officer© Aon plc 2023. All rights reserved.
