Anyone hear of these guys??

[jime444]

Unfortunately, the megaCorp I worked for was acquired (takeover, it appears) by a 10x MEGACORP. Not good, as you might have guessed, it appears benefit cuts are only the beginning.

Anyway, we were just TOLD our 401k assets were being moved to a new administrator. Our new admin is Aon Hewitt. The old one was Vanguard, in which I already had a IRA and pension through a previous miniCorp.

I.m always concerned when I know nothing about someone in charge of my money, as you might imagine. Questions:
1. Anyone know of Aon Hewitt? Reputation? Fee structure?
2. Do I have any other recourse, i.e moving the money to Vanguard, etc?
3. When I leave the organization, I'm probably going to move it to an IRA in Vanguard, which by the way, may be sooner than later. Ok?

thanks.
Jim

 

[frayne]

My retiree medical benefits are administrated via Hewitt and other than premium increases, no problems. Do a google search and you will find a bunch of info on AON Hewitt. AON Hewitt may still use Vanguard funds as 401K choices as I don't think they are an investment firm, they just administrate. I would think your employer would furnish additional info as this change may end up being a non issue.
Just my two cent and still working on my first cup of coffee so take what I say with a grain of sugar.

 

[LeavingOhio]

As Frayne said, AON Hewitt is the administrator. Hopefully your company will provide more info.

I can understand your concern though as in my opinion moving from Vanguard to anything else is not good. Vanguard is the best in my opinion closely followed by Fidelity Investments (I have investments with both).

If I were you, I would roll over everything currently to a Vanguard IRA, then if you need to invest in the new structure (to get company matching) then do so. If you're not happy with the new options, then JUST invest to the company match level and then invest in other places (the Vanguard IRA, some non-retirement mutual funds, etc.).

 

[Khufu]

Anyway, we were just TOLD our 401k assets were being moved to a new administrator. Our new admin is Aon Hewitt. The old one was Vanguard, in which I already had a IRA and pension through a previous miniCorp.

Some 401k plans permit an "in-service transfer" if you are older than 59.5. I took advantage of that at my last job and moved my 401k assets out every few months to an IRA during my last few years.

 

[Animorph]

DW's 401k is with Hewitt. Your Megacorp may have more to say about what's in it and what it costs than Hewitt. I didn't care for many of her 401k fund options, many of which were generic funds run by known managers and with expenses slightly more than their retail funds, but she was allowed a brokerage option that we use for most of her 401k portfolio. They have a decent selection of no transaction fee funds, though commissions for ETF's are high.

 

[teejayevans]

I.m always concerned when I know nothing about someone in charge of my money, as you might imagine. Questions:
1. Anyone know of Aon Hewitt? Reputation? Fee structure?
2. Do I have any other recourse, i.e moving the money to Vanguard, etc?
3. When I leave the organization, I'm probably going to move it to an IRA in Vanguard, which by the way, may be sooner than later. Ok?

1. My former megacorp used to use them before switching to FIDO, note that 401K plans starting in July have to provide you a disclosure of their fees, so you make sure you ask for those asap.
2. no, not while you are working
3. ok with me

TJ

 

[rodi]

As the others said - Hewitt is just the administrator. They seem to do a lot of benefit administration for megacorps.

My 401k is invested in Northern Trust funds - but managed by Hewitt. They also provide a bunch of the other benefit management for my megacorp.

When my megacorp was acquired by a bigger megacorp (AKA "new corporate overlords") a few months ago - we were *not* given the option to roll our 401k's. This was one of the most asked questions prior to the completion of the acquisition. We also, unfortunately, did not receive the same benefits as other employees of our new corporate overlords (which use Vanguard for their 401k).

From an employee point of view - we lost benefits (specifically the discounted stock purchase) and received no improvement of other benefits/compensation. Takeovers are brutal. Morale is in the tank.

But that has nothing to do with whether Hewitt is bad or good. Just that Hewitt is everywhere... especially if it's a large employer. For the most part they've been ok.

 

[SumDay]

I work for Aon Hewitt's biggest competitor. They're only the messenger, don't shoot them.

No, you can't move your $$$ elsewhere, unless you leave the new MegaCorp.

 

[jime444]

thanks, guys and gals. I appreciate the input. I'll ask for fee disclosures first thing and review the fund choices with care. As for being the messenger, I think I have just a little bit of skepticism for a financial advisor that sells reinsurance products. Call me a cynic, by the way, it's better than most people call me. Cheers. Jim

 

[haha]

As for being the messenger, I think I have just a little bit of skepticism for a financial advisor that sells reinsurance products. Call me a cynic, by the way, it's better than most people call me. Cheers. Jim

In this context, what do you mean by reinsurance products?

Ha

 

[jime444]

Well, my point is, if you believe insurance companies are not a good steward of your financial well-being, then a re-insurance MegaCorp; i.e., one that buys insurance policies for their insurance policies is not twice as bad, it's to the next power of bad. that is, in my opinion, at least an order of magnitude worse. Fees on top of fees and somehow it feels like a hand in each of my pants pockets. And that's why I'm skittish.

Well, we'll see. it appears I don't have much choice after talking to the HR department, less leaving and rolling my 401k to a IRA. Really not very pleased with that made-up rule, especially since 90% of the money is my personal savings, not company match and should be mine to manage, accordingly.

thanks again for all of your responses.

 

[kumquat]

Well, my point is, if you believe insurance companies are not a good steward of your financial well-being, then a re-insurance MegaCorp; i.e., one that buys insurance policies for their insurance policies is not twice as bad, it's to the next power of bad. that is, in my opinion, at least an order of magnitude worse. Fees on top of fees and somehow it feels like a hand in each of my pants pockets. And that's why I'm skittish.

How does this relate to Hewitt? My former mega-corp used Hewitt for various HR admin functions. I was in Canada although MC had a larger US presence. I think MC used Hewitt because they could service the US employees. In Canada (at least):

• Hewitt did not select the 'pension provider' (read 401K in US).
• Hewitt offered no advice to employees/retirees/anyoneelse.
• Hewitt coordinated other benefits supplied by other companies.

I don't see Hewitt as an insurance (or re-insurance) company. Are you refering to them in the edited quote?

 

[jime444]

well, after finding out today I'm on the recieving end of a 15-20% pay and benefit cut by our new corporate overlords, I'm lacking in any sort of positive assumption by changing our 401k administrator to Aon Hewitt. This includes a 5% DECREASE for me in my 401k matching. Lets just say I'm not a happy camper and any changes whether they are benevolent or not are the spawn of the evil ones from hell. Anything they do, any benefit they propose, any changes they implement are extrememly suspect; they are, in my opinion, illegal, unethical and/or immoral. In reviewing their website, the word re-insurance jumps out. It may or may not apply. However, at this point, I'm extremely critical of anything the evil empire can or will do to me and my coworkers. I'm quickly and pointedly looking for other employment. Personally, I categorize these kinds of people/organizations as nothing short of criminal. Nothing more, nothing less. They are just one of the reasons why this country is in the shape it is. If someone broke into your home and stole 15% of your stuff, how would you characterize them? Exactly. Common thieves masquarading as business men. Go knock off a liquor store, jerks. They wouldn't do that because they havent got the guts to. Grandmothers, kids and employees make easier targets. plus the guy at the liquor store might just shoot back.

The DW an I are now motivated at a very high level, I work at this point for one reason, for FIRE. Nothing more, nothing less. I wish all of you out there in the corporate purgatory the best of luck, you're going to need it.

 

[Animorph]

AON is in reinsurance. So is Berkshire Hathaway (Warren Buffet) for that matter. It's a normal financial product. Hewitt is a human recources admin company. It was bought by Aon in late 2010. Conflating the two in terms of morality seems a little extreme. Unless you now work for either one. Your 10x MEGACORP determines the funds available within your 401k, the fees, the company match, within the limits of what Hewitt can offer. Place the blame where it belongs.

 

[SumDay]

Animorph is correct. Aon Hewitt is doing exactly what MEGACORP told them to do. Aon Hewitt is also an employee benefits consulting firm, just as the company that I work for is. Clients tell us they want to reduce benefits, cut employee costs, etc., and we try to talk them out of it due to morale issues along with accelerated attrition. But the clients don't care. They don't realize how expensive it is to replace employees, particularly long term employees. They are just looking at the bottom line, basically to please shareholders.

So place the blame at the feet of MEGACORP and their shareholders. You may be a shareholder, either through your 401(k) or some other way?

Aon is not the evil doer here. Welcome to corporate life in America. And I'm not trying to minimize what they've done to you - I feel your pain. My husband just lost his pension from GM. They've decided paying those pensions was too expensive, so they offered us a lump sum. Am I mad at Fidelity for GM's decision? No, because it was GM's decision to make, probably in spite of what their benefit consultant told them. It is what it is.

Good luck to you.

 

[LOL!]

well, after finding out today ....

I think many of us assumed the worst from our employees from our very first jobs as teenagers and planned accordingly. That meant always living below ones means and investing in our own accounts: 401(k), 403(b), IRAs, taxable, etc.

I guess I'm asking this: Didn't you start your go-to-hell fund many years ago?

 

[Rustward]

well, after finding out today I'm on the recieving end of a 15-20% pay and benefit cut by our new corporate overlords, I'm lacking in any sort of positive assumption by changing our 401k administrator to Aon Hewitt. This includes a 5% DECREASE for me in my 401k matching. Lets just say I'm not a happy camper and any changes whether they are benevolent or not are the spawn of the evil ones from hell. Anything they do, any benefit they propose, any changes they implement are extrememly suspect; they are, in my opinion, illegal, unethical and/or immoral. In reviewing their website, the word re-insurance jumps out. It may or may not apply. However, at this point, I'm extremely critical of anything the evil empire can or will do to me and my coworkers. I'm quickly and pointedly looking for other employment. Personally, I categorize these kinds of people/organizations as nothing short of criminal. Nothing more, nothing less. They are just one of the reasons why this country is in the shape it is. If someone broke into your home and stole 15% of your stuff, how would you characterize them? Exactly. Common thieves masquarading as business men. Go knock off a liquor store, jerks. They wouldn't do that because they havent got the guts to. Grandmothers, kids and employees make easier targets. plus the guy at the liquor store might just shoot back.

The DW an I are now motivated at a very high level, I work at this point for one reason, for FIRE. Nothing more, nothing less. I wish all of you out there in the corporate purgatory the best of luck, you're going to need it.

jime, this is going to sound a little cold, but here it is: Would you rather have your megacorp just fire you instead of doing all these cost-cutting measures?


BTW, thee is nothing evil about reinsurance -- it is pretty common.

 

[jime444]

thanks for all your responses and corresponding lack of sympathy. Lol. I'm looking forward to seeing what AH has to offer in terms of fund management, customer service, fees, etc. My comparison will be Fidelity and Vanguard, both of which I have personal IRA's/401k's with. I'll report on how they compete and try to be as "fair" as I can be. At least, as "fair" as I have been treated, so far. I also agree that they are just the messenger, the real evil is the new organization, which I'm correspondingly very discouraged with.

In my career which now spans 30+ years, I've been part of an organization(s) that have been merged, acquired, bought out, sold, takenover, etc. 4 times. Yes, 4. Accordingly, I consider myself to be 0-4, now. That is, zero wins, 4 losses. As someone said earlier, cynicism, sarcasm and poor morale are just the beginning. However, I personally do have sympathy with anyone that gets to deal with this during their working life. If you do, you deserve early retirement.

As for the "go to hell" cash, I call it up-anchor money, Navy background, by the way. Yes, I'm funded approximately 12 months at our current spending rates without touching any longer term savings, bonds, pensions, investments, etc. However, at this point in my life (my 50's), even with my skills in this economy, it would take significant effort to "start over". Especially, since I'm so close to the end, say three years. So, I may just have to swallow my pride, take the financial beating, buckle down and do the time. How come this sounds a lot like prison? Cheers.

 

[rodi]

jime444 -
You'll get plenty of sympathy for me. Between acquisitions, spinoffs, etc - I'm also 0 for 4. And also recently had a significant benefit reduction (stock purchase plan eliminated with latest takeover.)

Add to that massive layoffs this week. From a megacorp that used to claim to do no evil.... it sucks. I survived... but kind of wish I hadn't.

But I don't think Hewitt is the problem.

As mentioned - your megacorp makes the decisions. Place blame where it belongs. Hewitt is just an outsourced entity that implements the decisions.

Look at corporate HR, look at the board of directors, look at the VPs and bean counters that get bonuses commensurate with cost cuts. (Cost cuts on the backs of employees.) These folks look at employees as expenses - not assets.

It's important to know who's making the decisions. Aon Hewitt is not.

 

[SumDay]

As I said, I work for Aon's biggest competitor, and in my 28 years there I've been through six mergers. No one likes change, particularly when it involves taking the change out of your pocket.

I just do more yoga and try to stay calm. This too shall pass.....

 

[Moveon]

Move on

I also went the Corporate Jungle and was " Downsized" .
Believe me I understand how disheartening and Frustrating that can be.
I have some advice for you.
Forget Corporate Life.
I did and it was the best move I ever Made.
I decided to Re-invent myself and after 31 years of Corporate life I started
my own Business by opening a Retail Store in resort community designing and Selling Resort ware with NO prior experience in Retail.
I took out my 401k from my Company in a Lump Sum and invested in myself.
After 10 years I Sold my Business for a 42% ROI which was obviously a lot
better that the ROI I was making with the Matching Fund with my Company.
I then took my proceeds and invested it with Ameriprise and am currently enjoying a handsome return on my Investment.
After Selling my Business I re-invented myself again and became a Realtor
which I currently am engaged in and love every minute.
I haven't had an actual " Paycheck " in over 21 years but I am better off Financially now than during my Corporate days and a whole lot HAPPIER!!
The point to all this is you need to move on.
It's just a matter of time before your new MegaCorp does it to you again.
Get out and put your Talents to work for YOU!
Good Luck.

thanks for all your responses and corresponding lack of sympathy. Lol. I'm looking forward to seeing what AH has to offer in terms of fund management, customer service, fees, etc. My comparison will be Fidelity and Vanguard, both of which I have personal IRA's/401k's with. I'll report on how they compete and try to be as "fair" as I can be. At least, as "fair" as I have been treated, so far. I also agree that they are just the messenger, the real evil is the new organization, which I'm correspondingly very discouraged with.

In my career which now spans 30+ years, I've been part of an organization(s) that have been merged, acquired, bought out, sold, takenover, etc. 4 times. Yes, 4. Accordingly, I consider myself to be 0-4, now. That is, zero wins, 4 losses. As someone said earlier, cynicism, sarcasm and poor morale are just the beginning. However, I personally do have sympathy with anyone that gets to deal with this during their working life. If you do, you deserve early retirement.

As for the "go to hell" cash, I call it up-anchor money, Navy background, by the way. Yes, I'm funded approximately 12 months at our current spending rates without touching any longer term savings, bonds, pensions, investments, etc. However, at this point in my life (my 50's), even with my skills in this economy, it would take significant effort to "start over". Especially, since I'm so close to the end, say three years. So, I may just have to swallow my pride, take the financial beating, buckle down and do the time. How come this sounds a lot like prison? Cheers.

 

[braumeister]

I then took my proceeds and invested it with Ameriprise and am currently enjoying a handsome return on my Investment.

Very inspiring. Thank you.