Employer Covenant Review

More and more the Pensions Regulator expects trustees to seek independent advice on the strength of sponsors of final salary pension schemes.

Indeed latest advice from the regulator is putting the onus on trustees to positively affirm that they have “independently” satisfied themselves of the employers financial stability. 

Our experience in providing employer covenant advice to trustees and pension schemes covers a large number of listed and large private clients. Our approach to covenant review considers the three main objectives of the trustees, all in the context of affordability and not wishing to bring about the downfall of the employer - “killing the golden goose”.

  1. Assessing the financial position;
  2. Reviewing the proposed repayment plan; and
  3. Looking at the level of available guarantees or security

All of our reports are tailored to trustees’ needs and we are happy to work across a variety of scopes, ranging from desktop review to a full analysis of a scheme sponsor strength.