March 19, 2014
Kate Childs Graham
Joint Statement of AFT President Randi Weingarten and Aon Hewitt CEO Kristi Savacool on Decision to Remove Aon from AFT Asset Managers Report
WASHINGTON— The American Federation of Teachers recently published the second edition of its report "Ranking Asset Managers," which documents asset fund management companies that work with defined benefit funds while also supporting organizations trying to eliminate defined benefit pensions. We are pleased to announce that today the AFT has removed Aon from the report based on the company's history of strong support for defined benefit pensions and assurances of continued strong support in the future.
"Aon joins the ranks of several companies—including KKR & Co., AQR Capital Management and Dimensional Fund Advisors—that have made positive commitments to support retirement security for public sector workers. We gladly remove Aon from our report and hope the partnership we are forging with them inspires other companies to follow suit," said AFT President Randi Weingarten.
"Aon is a strong advocate for improving the retirement security of public employees, particularly teachers, and we fully support the role that defined benefit plans play in their financial future," said Aon Hewitt CEO Kristi Savacool. "We look forward to working with the AFT in the days ahead to find new ways to broaden retirement security for all workers."
Over many generations, public sector workers, including teachers, have earned lower salaries throughout their working careers with the understanding that they will have a secure retirement. That has been part of America's social contract that enabled the public services to attract and retain a high-quality workforce. The primary way these retirement needs have been addressed is through defined benefit plans, into which both employees and employers contribute. These plans provide a fair and cost-effective way to address retirement security for future generations.
Read the report here.
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The AFT represents 1.5 million pre-K through 12th-grade teachers; paraprofessionals and other school-related personnel; higher education faculty and professional staff; federal, state and local government employees; nurses and healthcare workers; and early childhood educators.