Aon Hewitt Survey Reveals More U.S. Employers Likely to Add Roth Features to their Defined Contribution Plans in 2013

 Aon Hewitt Survey Reveals More U.S. Employers Likely to Add Roth Features to
                   their Defined Contribution Plans in 2013

'Fiscal Cliff' Provision Opens Door for Increased Roth 401(k) Adoption

PR Newswire

LINCOLNSHIRE, Ill., Feb. 6, 2013

LINCOLNSHIRE, Ill., Feb. 6, 2013 /PRNewswire/ -- A new survey by Aon Hewitt,
the global human resources solutions business of Aon plc (NYSE: AON), reveals
an increasing number of U.S. employers are planning to add Roth features to
their defined contribution (DC) plans in 2013. This comes on the heels of new
legislation that makes it easier for DC investors to convert balances within
their savings plan into Roth accounts.

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Immediately following the passage of the American Tax Payer Relief Act of
2012—or so-called 'fiscal cliff' deal—Aon Hewitt conducted a pulse survey of
more than 300 individuals representing large U.S. employers to determine the
prevalence of Roth accounts and employers' likely actions with respect to
their plans over the next 12 months. According to Aon Hewitt's findings, while
almost half (49 percent) of respondents currently offer no Roth provisions, 29
percent of those that don't offer Roth are very or somewhat likely to add this
feature in the next 12 months. Of those new adopters, more than three-quarters
(76 percent) will add both Roth contribution and in-plan conversion features.

"While employers have steadily been adopting Roth features in recent years,
the new law, along with a better understanding of Roth by both participants
and companies, will encourage more plan sponsors to add these options in the
near-term," said Patti Balthazor Bjork, director of Retirement Research at Aon
Hewitt.

Aon Hewitt's survey also found that employers that already have a Roth
contribution option are likely to allow employees to make in-plan conversions
to Roth accounts. Of those respondents that currently allow Roth contributions
but do not offer in-plan conversions, more than half (53 percent) are very or
somewhat likely to add this feature in the next 12 months.

For companies that already allow Roth contributions and in-plan conversions,
more than three-quarters (79 percent) are very or somewhat likely to expand
the eligibility for in-plan conversions, allowing them for previously
non-distributable amounts.

"The new rules open the door for employers to allow expanded in-plan
conversions, but it's not a requirement," explained Bjork. "However, it makes
the Roth conversions more attractive for employees, so there will likely be
increased interest and incentive for employers to offer them."

Aon Hewitt's retirement practice advises, designs and administers defined
contribution benefits for hundreds of mid-sized and large plans. For more
information visit aonhewitt.com.

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About Aon Hewitt
Aon Hewitt is the global leader in human resource solutions. The company
partners with organizations to solve their most complex benefits, talent and
related financial challenges, and improve business performance. Aon Hewitt
designs, implements, communicates and administers a wide range of human
capital, retirement, investment management, health care, compensation and
talent management strategies. With more than 29,000 professionals in 90
countries, Aon Hewitt makes the world a better place to work for clients and
their employees. 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 61,000 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.

MacKenzie Lucas, 847-442-2995, mackenzie.lucas@aonhewitt.com
Maurissa Kanter, 847-442-0952, maurissa.kanter@aonhewitt.com

SOURCE Aon plc

Website: http://www.aon.com
 
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