Around 2,000 scheme members from 20 DC pension schemes have been exposed to riskier assets for up to four years because of a failure of Aon Hewitt’s administration of lifestyling assets.
The error occurred in an administration team working in the consultancy’s Glasgow office.
The consultancy says it will be down to trustees to decide whether members who have benefited from being left in an incorrect asset allocation strategy for their age will be put back into the position they would have been in had the error not been made. A source says ‘roughly 100 members in each scheme’ are affected by the error.
A spokesman for Aon Hewitt says: “We are aware of the issue with certain DC schemes administered from the Glasgow office and are working actively to correct it .
Our prime objective is to make certain that scheme members are not affected financially, and as a result, we are undertaking a thorough review in order to make certain that this is the case.
“The decision as to how to deal with members who have benefited as a result of the error will lie with the trustees of each scheme.”
Muse Advisory client director Ian McQuaide says: “This is the sort of thing that used to happen 20 years ago and simply shouldn’t happen now. It is surprising it hadn’t been picked up in any of the annual reviews or audits.”