Understanding the ability of an employer to support its pension scheme is a central component of trustees’ risk management and has been a core theme of funding guidance published by the Pensions Regulator.
Argyll helps trustees understand the employer covenant. The Regulator has made it clear that it expects trustees and employers to approach risk management in an integrated way and consider covenant, funding and investment risks together (Integrated Risk Management).
By working closely with their actuarial, legal and investment advisers, we ensure the covenant is integrated into trustees’ funding and investment decisions, as expected by the Regulator. We also support trustees when the covenant changes, usually as a result of corporate activity such as a merger or acquisition, debt refinancing or business restructuring.
Although a full covenant assessment is usually carried out every three years to coincide with the actuarial valuation, the Regulator expects trustees to monitor the covenant between valuations. We offer a variety of monitoring solutions from ‘light touch’ KPI monitoring to detailed dashboards and commentary.
We tailor our service to each client which can range from regular covenant assessments to large transaction- or funding-based projects.
We have experience of a vast range of industries and are also a leading provider of covenant analysis to the non-profit and charitable sector.
Contact us for more details of our services or for a no-obligation, confidential discussion of your requirements.