What is Covenant Monitoring and What Are The Ongoing Obligations?
Assessing the employer’s covenant is not a single exercise carried out at each triennial valuation, it is an ongoing obligation.
It enables scheme Trustees to protect the interests of their scheme members as the scheme employers’ financial situation changes as a result of management actions or external commercial or economic factors.
The Regulator, through guidance and its series of national workshops, recommends ongoing monitoring of the employer covenant.
Our specialists recognise and understand this need and are able to offer a tailored and cost effective service to Trustees to enable them to respond decisively should a situation arise where they need to act promptly to safeguard their members’ interests.