Employee Benefits News examines legal developments that impact the employee benefits and executive compensation employers provide, including federal and state legislation, rules from federal...
Aon Plc is terminating the company stock fund as an investment option in its $5.3 billion 401(k) plan.
The Aon Stock Fund will be liquidated and removed from the plan by the end of December 2017, the company said in its latest filing with the Securities and Exchange Commission. Employees haven’t been able to contribute to the fund since April, the filing said. Plan participants who currently contribute to the fund, which held $238.3 million in assets as of the end of 2016, will need to select a different investment option, the company said.
Aon eliminated the option to invest in the company’s stock fund “to encourage greater diversification of retirement savings,” Aon’s spokeswoman Maurissa Kanter told Bloomberg BNA July 14 via email.
In addition to investing in Aon’s stock, the plan also invests in the stocks of other 145 companies, including Microsoft Corp. ($20.9 million), Amazon.com Inc. ($19.8 million), and Alphabet Inc. ($27.7 million), the parent company of Google.
In recent years, big-name companies have been sued by workers challenging their employers’ decision to add poorly performing company stock as an investment option in their retirement savings. Those companies, including Eaton Corp., RadioShack Corp., Whole Foods Corp., Lehman Brothers, JPMorgan Chase & Co., International Business Machines Corp., and BP Plc defeated lawsuits by employees who claimed the companies failed to remove poorly performing company stock from their retirement plans. However, these results haven’t stopped employees from filing new lawsuits against other companies, including Chesapeake Energy Corp., Seventy Seven Energy Inc., and General Cable Corp.
Aon shares closed at $136.22 July 14 on the New York Stock Exchange, up 23 percent from $110.55 a year earlier.
As of the end of 2016, Aon’s 401(k) plan had 36,132 participants.
To contact the reporter on this story: Carmen Castro-Pagan in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Jo-el J. Meyer at email@example.com
Text of the SEC filing is at http://src.bna.com/qMF.
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)