The Employer Covenant Review

We can provide advice to either the Pension Scheme Trustees or the Principal Employer in relation to the funding of their Defined Benefit Scheme.

The strength of the Employer Covenant is addressed using our financial modelling techniques and applying them to available public financial accounting information and any other financial information made available by the Principal Employer or the Group to which it belongs. This might include up to date management accounts, financial forecast and if relevant, pre/post business sale projections.

We will benchmark the strength of the Employer Covenant against those provided by a range of Credit Agencies and analyse any recent broker reports relating to the financial position and prospects of the Group.

Taking all of the above into account we can assist the trustees or the corporate in their considerations over a funding plan. The plan will include suggested time period, question of funding and possible sources of security.

When invited to do so we will assist the trustees or the corporate in their negotiations with other professional advisors and the Pensions Regulator.

If the advice being sought relates to a potential sale or acquisition of the business we can use our Corporate Finance colleagues to assist on negotiations regarding business valuations, financial instruments and security arrangements.