Aon is the Latest to Phase Out its Old Pension Plan

Aon is the latest company to phase out its defined benefit pension plan. It’s also adding a second defined contribution plan.

According to Business Insurance, Aon already has a 401(k) plan, but this new plan will be based on employees’ length of service. Employees will receive an annual employer contribution of 3 to 7 percent of their pay, depending on how long they’ve been with the company.

U.S. Aon employees hired since January 1, 2004 will be enrolled in the new plan. The company will keep its defined benefit plan for people hired before then.