Employer Covenant and Restructuring Services
The Pensions Regulator has made it critical for stakeholders of defined benefit pension schemes to understand and monitor the businesses that support them. This includes assessing the strength of the employer's financial position and prospects as well as its legal obligation to fund the scheme's benefits (known as the 'Employer Covenant'), and the impact of employer or scheme events on the scheme’s position.
How we can help
We are committed to providing clear, unambiguous advice and creating innovative solutions for our clients. We are robust in supporting our clients' interests, while recognising the Employer / Trustee relationship is ongoing and long-term, thereby benefiting from a pragmatic, consensual approach to discussions.
Our team is adept at harnessing the unparalleled breadth and depth of talent and expertise across the firm, often working with the Deloitte Consulting practice to leverage specific sector expertise, and/or actuarial benefit advice from Deloitte Total Reward and Benefits.
Our experts provide clear, pragmatic, employer covenant advice to trustees and employers who are looking to better understand the support provided to a scheme by the sponsor - be that as part of a triennial valuation, regular monitoring or to assess the potential impact of corporate activity.
Restructuring and Transaction Support
We have considerable experience supporting lenders, employers and trustees in both restructuring/insolvency situations and non-distressed transactions. This includes advising on Regulated Apportionment Arrangements (RAAs), Flexible Apportionment Arrangements (FAAs) and potential risk from the Pensions Regulator’s ‘moral hazard’ powers.