This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Aon Hewitt Urges U.S. Employers And Providers To Encourage Workers To Keep Retirement Dollars In The Employer-Provided System

Stocks in this article: AON

LINCOLNSHIRE, Ill., April 4, 2013 /PRNewswire/ -- A report just released by the U.S. Government Accountability Office (GAO), "401(k) Plans: Labor and IRS Could Improve the Rollover Process for Participants," showed that the current 401(k) rollover system is complex, confusing, lacks consistency and favors moving money into individual retirement accounts (IRAs). Aon Hewitt, the global human resource solutions business of Aon plc (NYSE:AON), agrees with the GAO's findings and recommendations and urges companies to help workers reach their retirement savings goals by encouraging them to keep retirement dollars in the employer-provided retirement system. According to Aon Hewitt, employees who roll plan balances into retail accounts without fully understanding their options significantly increase their risk of not meeting their financial needs in retirement.


"The GAO's report brings to light very real problems with the current rollover system," said Alison Borland, vice president Retirement Solutions and Strategies at Aon Hewitt. "Keeping retirement dollars in the employer-provided system is paramount to helping workers ensure that they are adequately prepared for retirement, and we have long been concerned about the difficult process workers face when trying to roll one employer 401(k) plan into another. Aon Hewitt believes the GAO recommendations for improving the rollover process would go a long way to ensure that workers' best-interest and financial security is a top priority for employers and plan providers."

According to Aon Hewitt, many workers do not intuitively understand the advantages of keeping retirement savings dollars in the employer-provided system and do not have a trusted source of clear, understandable, unbiased education about their options. Consequently, it is crucial for employers to educate and communicate with employees about the benefit of participating in a qualified plan—and to ensure the information being provided to employees by third parties with whom they have a relationship is fair, unbiased and in the best interest of plan participants.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs