This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

Bookmark Print page

Employer Covenant Assessment for Trustees

Commentary from the Regulator has created an expectation that Trustees will actively monitor the strength of the Employer Covenant. However, Trustees do not necessarily have a background in finance and where they do (e.g. finance director) there may be a perception of a conflict of interests between their roles for the Company and as a Trustee. Consequently assessing and monitoring the performance of the business can be challenging.

We help Trustees to navigate this process by providing independent advice in the following key areas:

  • Employer and Scheme Events
    • understanding the impact of the event on the employer covenant and the Scheme’s position
    • considering the appropriateness, level and nature of any mitigation required
    • providing support through negotiations and, potentially, tPR clearance process
  • Scheme Funding – the triennial valuation process
    • assessing the strength of the employer covenant, summarising findings in clear, straightforward terms
    • considering term and affordability of recovery plan, including assessing or suggesting alternative mitigation solutions
    • support through funding and recovery plan negotiations
  • Ongoing monitoring
    • developing monitoring “dashboard” to simplify and improve effectiveness of employer covenant monitoring
    • providing regular or ad hoc update covenant reviews

For more information please contact Tom Partridge (London and South East), Matt Cowlishaw (Midlands) or Martin Barron (North and Scotland).

Share this page

Email this Send to LinkedIn Send to Facebook Tweet this More sharing options
Follow:

Get in touch

More on Deloitte