BTG Pensions Advisory offers Trustees a comprehensive covenant assessment service
As a Trustee, you will want and need to know the extent your scheme employer is, both currently and for the longer term, able and willing to fulfil its obligations to its pension scheme.
You will want to assess its ability to meet the schedule of contributions set to eliminate any past service deficit identified by the scheme funding process.
Where its current cash resources cannot eliminate any existing past service deficit immediately, you will need to see the employer’s projected cash flows and business plans to establish what it can reasonably afford and over what period it can make up the deficit.
Where the deficit is unlikely to be met within the immediately foreseeable future you will need to consider what other security may be available to secure the scheme benefits should the scheme employer become insolvent and where the scheme would sit in relation to other creditors.
As a Trustee you will also need to understand the impact corporate transactions or other scheme events the employer may initiate or undertake will have on the scheme and on the employer’s continuing ability to support the scheme.
BTG Pensions Advisory is uniquely placed to provide you with the support you require to comply with your obligations in that process and to assist you in seeking to achieve your scheme’s Statutory Funding Objective.
Our pension advisory service includes:
- Covenant assessment and independent business reviews
- Monitoring changes in employer covenant
- Participating in scheme funding negotiations
- Devising innovative solutions to secure the employer and scheme
- Assessing the level of free cash flow to fund pension liabilities
- Identifying the impact of corporate transactions on the scheme
- Advising on restructuring opportunities
- Negotiating with the PPF in restructuring cases
- Identifying available security opportunities
- Estimating likely outcomes on insolvency
- Advising on employer withdrawal events and Section 75 debts