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 Angus Martin (London and South East), Matt Cowlishaw (Midlands) or Martin Barron (North and Scotland).