Aon is freezing its defined benefit pension plan, ending contributions to a defined contribution plan it set up in 2004 and enhancing its 401(k) plan.
As of April 1, employees in Aons pension plan will stop earning benefits; the plan was closed to new employees in January 2004. Aon stopped making contributions on Jan. 1 to the DC plan, which covered those U.S. employees hired since Jan. 1, 2004.
Also on Jan. 1, Aon enhanced its 401(k) plan, now matching 100% of employees salary deferrals up to the first 6% of pay. It had been a 50% company match on the first 6% of pay.
An Aon spokesman said the changes were made to reduce costs and to base employees compensation more on performance.
The Aon defined benefit plan had $1.514 billion and the 401(k) plan had $1.914 billion, both as of Dec. 31, 2007, according to SEC filings.