Management Consulting
Aon
Full Credential Description
JDE, a leading coffee company formed from the merger of Mondelez International and Sara Lee, faced significant challenges in harmonizing employee benefits across its diverse workforce. The company inherited eight legacy pension schemes, which created a complex governance structure focused on defined benefit plans. Key issues included high administrative burdens despite low active membership, restricted access to pre-2015 data, and a lack of employee understanding regarding pension options—only 30% of employees felt they understood their pensions. Additionally, there was a two-tiered workforce with low engagement from existing defined contribution (DC) members, and the auto-enrollment process required streamlining. To address these challenges, JDE aimed to create equity in benefits by enrolling all associates into a single DC plan with competitive terms. The goals included incentivizing existing DC members to transition to the new plan, improving employer contributions to a double-matched scheme of 10%, and enhancing employee understanding and engagement in retirement savings. Aon collaborated with JDE to develop a comprehensive solution that included a modernized pension offering, educational programs, and digital tools to facilitate member engagement. The tailored solution involved creating a double-matched scheme with a total contribution of 15%, including 10% from the employer. Aon implemented communication and education initiatives, such as one-on-one financial advisor support for former DB members, online resources, and interactive sessions to ensure employees understood their options. The transition to digital platforms allowed for better access to pension information, even for off-line employees, and included tools for holistic financial planning. The results of these initiatives were significant. The administrative process was streamlined, reducing pension uploads from nine to one, and the time spent on administration decreased to just 10 minutes per month. Employee understanding of pension plans surged from 30% to 70%, with 420 employees reporting a good understanding of their options. The new benefits structure provided equity across the workforce, with all employees receiving the same contribution matching. Notably, 57% of former DB members opted to transition to the new pension scheme, and 82% of new scheme members contributed at rates of 5% or more. Overall, JDE successfully modernized its pension offerings, improved employee engagement, and enhanced job security through a more equitable benefits structure.