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Aon and Willis Towers Watson Mutually Agree to Terminate Combination Agreement

"Aon plc and Willis Towers Watson announced today that the firms have agreed to terminate their business combination agreement and end litigation with the U.S. Department of Justice (DOJ). The proposed combination was first announced on March 9, 2020.... In connection with the termination of the business combination agreement, Aon will pay the $1 billion termination fee to Willis Towers Watson, Willis Towers Watson's proposed scheme of arrangement has now lapsed, and both organizations will move forward independently."

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Justice Department Sues to Block Aon's Acquisition of Willis Towers Watson

"The merger between Aon and Willis Towers Watson would combine two of the 'Big Three' insurance brokers who, as alleged in the complaint, can offer global service, sophisticated data and analytics, and a breadth and depth of knowledge and expertise that other brokers do not offer. As alleged in the complaint, Aon and Wills Towers Watson operate 'in an oligopoly' and 'will have even more [leverage] when [the] Willis deal is closed.' If permitted to merge, Aon and Willis Towers Watson could use their increased leverage to raise prices and reduce the quality of products relied on by thousands of American businesses -- and their customers, employees, and retirees." [U.S. v. Aon and Willis Towers Watson, No. 21-1633 (D.D.C. complaint filed Jun. 16, 2021)]  MORE >>

Aon Sues Willis Towers Watson, New CFO Over Breaking Non-Compete Agreement

"Willis Towers Watson and its new Chief Financial Officer Michael Burwell, who is scheduled to start Oct. 2, are being sued by rival Aon over allegations that Mr. Burwell violated a two-year non-compete agreement because he had access to Aon trade secrets in his role as a consultant helping restructure the company. The lawsuit ... seeks to prevent Mr. Burwell from working for Willis Towers Watson for two years and is seeking $75 million in damages. It accuses both Willis Towers Watson and Mr. Burwell of violating the Illinois trade secrets act. It also accuses Mr. Burwell of breaching his fiduciary duty and Willis Towers Watson of unfair competition."  MORE >>

Cambridge Retirement System Sues Willis Towers Watson Over Merger

"Cambridge (Mass.) Retirement System filed a class-action lawsuit against Willis Towers Watson and other defendants for allegedly violating provisions of the Exchange Act in connection to the merger between Towers Watson & Co. and Willis Group Holdings. The suit alleges that defendants issued false and misleading statements in proxy materials filed with the U.S. [SEC] prior to the merger, which closed on Jan. 4, 2016."  MORE >>

Towers Watson Comment Letter to SEC Recommending Clarifications to and Simplification of Pay versus Performance Proposed Rule (PDF) (PDF)

14 pages. "Our comments fall into the following categories: [1] Pension Calculation Issues; [2] Equity Valuation Issues; [3] Peer Group Selection; [4] TSR Calculation and Presentation; and [5] Initial Application and Transition Rule.... [We] offer suggestions where we believe the Commission can provide more clarity, simplify its approach for easier compliance or adopt an alternative approach that we believe will be an even further improvement in the measure of compensation. 'actually paid.' "  MORE >>

Willis Acquires Towers Watson -- Is There More to This Story?

"Back in 2011 Aetna CEO Mark Bertolini made the comment, 'Not too far away from now -- in the next 6-7 years -- 75 million Americans will be retail buyers of healthcare. And they'll come to the marketplace with their own money and either a subsidy from their employer or a subsidy from their government. And it doesn't much matter -- they'll be spending their money.' Since then Aetna has been acquiring technology companies including bswift that has built 'exchange' capabilities. Bertolini thinks healthcare will be individually purchased. Aetna buys exchange technology. Towers Watson buys exchange technology. Willis buys Towers Watson. Are these events part of the same story?"  MORE >>

Plans in the Towers Watson Pension 100: Funding, Discount Rates, Allocations and Contributions

"Falling interest rates coupled with updated mortality assumptions significantly increased liabilities, thus wiping out most of the previous year's gains. Average funded status was 82.2% at year-end 2014, down considerably from 90.2% for 2013 but still up from 77.1% for 2012. Plan sponsors using liability-driven investment strategies had good results in 2014."  MORE >>

Towers Watson Comment Letter to DOL on Proposals for Lifetime Income Illustrations in Pension Benefit Statements (PDF)

"We are concerned that a mandate will lead to an overly complex notice that will not be particularly useful to plan participants and might leave participants with the often incorrect impression that the plan will pay an annuity. Furthermore, we are concerned that a mandate may result in plan sponsors doing less than they might otherwise (or currently) do in this area out of concern for conflicting with mandated information or for exposing themselves to risks."

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Sixth Annual Towers Watson/ISCEBS Retiree Medical Survey (PDF)

Of the key factors driving employers to reassess their retiree medical strategy: 87% cite new federally subsidized insurance options under reform for pre-65 coverage. 73% cite the excise tax. 58% of employers are swayed by coverage enhancements for retiree prescription drug coverage, such as closure of the Part D coverage gap ... beginning in 2011.  MORE >>

2009 Plan Funding of the Towers Watson 100 on a Regulatory Basis: Actuarial Assumptions and Methods

For the TW 100, this analysis identifies valuation methods, asset values, funding targets, funded status, plan contributions, funding balances and actuarial assumptions for the 2009 plan year.

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2010 Disclosures of Funding, Discount Rates, Asset Allocations and Contributions of the Towers Watson Pension 100

During 2010, aggregate funded status for defined benefit ... plans sponsored by the Towers Watson 100 ... increased from 82% to 84%.

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16th Annual Towers Watson/National Business Group on Health Employer Survey on Purchasing Value in Health Care

To help us assess emerging trends in employer-sponsored health care programs, nearly 600 survey participants provided detailed information about their health care programs, their strategies and practices, and the results of their efforts to manage health benefit costs and improve employee health.

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Towers Watson Comments on Target Date Fund Disclosure Proposed Regulations

The comments address identifying assumptions in disclosures, the effective date, benchmarking and considerations for plan fiduciaries in choosing target date funds.

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Towers Watson?Forbes Insights 2010 Pension Risk Survey

Excerpt: There is no sign that the decline in the sponsorship of active defined benefit (DB) plans has reversed. Neither is the extinction of DB plans imminent. Instead, the survey shows that most sponsors of active plans will continue to provide retirement benefits, although many will cut back on benefits, and some are indeed seeking to close or freeze. The task for pension plan sponsors, according to respondents, is to take action to manage risk and reduce liabilities.

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The Towers Watson Retirement Attitudes Survey (PDF)

6 pages. Excerpt: The survey found that: More than half of employees across all ages report significant declines in their savings over the last two years. Employee confidence in having enough savings to live comfortably in retirement has recovered from February 2009 levels, but remains well below precrisis levels. While confidence is higher for those who participate in a defi ned benefit (DB) plan rather than a defined contribution (DC) plan, such as a 401(k), more younger employees are beginning to express concerns about their DB plans.

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Towers Watson Response to Request for Information Regarding Lifetime Income Options for Participants and Beneficiaries in Retirement Plans (PDF)

7 pages. "Rather than mandating that plan sponsors disclose the income stream that can be provided from an account balance, Towers Watson supports testing these disclosures in a proof-of-concept experiment.The DOL and Treasury could seek a number of plan sponsors to serve as volunteers. Volunteers would test different assumption sets and methods, as well as different forms of presenting the information (possibly including replacement ratios and various draw-down solutions in addition to life annuities), and would receive protection from liability for their participation."  MORE >>

Purchasing Value in Health Care: 15th Annual National Business Group on Health/Towers Watson Employer Survey

Excerpt: Amid heightened cost pressures brought about by the prolonged economic downturn, companies are assessing their health plan programs to control costs and build healthier and more productive workforces. Despite their efforts, however, employers remain frustrated by employees' poor health habits and the difficulty in motivating behavior change. Additionally, they are uncertain about the potential for health care reform legislation to increase their financial and administrative burdens.

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Purchasing Value in Health Care: Selected Findings from the 15th Annual National Business Group on Health/Towers Watson Survey Report

Excerpt: The results of this year's survey ... show employers are frustrated by employees' poor health habits and are struggling to effectively motivate behavior change. Additionally, they are uncertain about the future of employer-sponsored benefits, especially in light of the potential for health care reform legislation. Against this backdrop, employers are doing more to hold the line on costs and achieve better health and productivity outcomes.

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Towers Perrin and Watson Wyatt Shareholders Approve Merger

Excerpt: The shareholder approval comes after clearance by U.S. antitrust authorities and the European Commission. Stamford, Conn.-based Towers Perrin and Arlington, Va.-based Watson Wyatt expected the merger to take effect Jan. 1. The combined firm will operate under the name Towers Watson & Co.  MORE >>

Aon Buys Willis Towers Watson: Another Waypoint in the Demise of Employer Pensions

"[T]he reporting on this merger doesn't even mention these firms' actuarial practices as a relevant part of their businesses, nor does the company's presentation on the merger mention the relevance of its actuarial practice except as a part of general expertise in retirement.... [It's] just another sign of the times: employer-sponsored pensions are so much on the decline that they're virtually irrelevant, as far as the business of actuarial valuations is concerned."  MORE >>