Employer's covenant

One of the cornerstones of the new Scheme Funding regime is the requirement for all trustees to assess and understand the strength of the employer’s covenant.

Horwath Clark Whitehill’s pensions specialists carry out bespoke employer’s covenant delivering practical recommendations on the strength of the covenant.

We can assist you by:

• undertaking a financial review to establish the ability of the employer to support contributions
• advising on financial options available to trustees based on the employer’s funding capacity
• considering the impact of any proposed restructuring by the employer
• assisting in clearance procedures
• establishing a review process to strengthen governance.

The review is not just a one-off assessment but requires ongoing monitoring which follows as part of our review process.

‘It is essential for trustees to form an objective assessment of the employer’s financial position and prospects as well as its willingness to continue to fund the scheme’s benefits.’

Code of Practice on Scheme Funding, The Pensions Regulator

For more information, please contact Andrew Penketh by email on andrew.penketh@horwath.co.uk or by telephone on 0207 842 7100.

 

© 2009 Horwath Clark Whitehill. This information is published without the responsibility on our part for loss occasioned to any person acting or refraining from acting as a result of any information published herein. Privacy Policy Legal