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Helping trustees
monitor covenant strength

Case studies

The background

​The sponsoring employer manufactures diagnostic machinery in the healthcare sector, and is owned by a German parent.​

The Trustees had not previously taken independent covenant advice. They initially appointed us to assist in the design of a proportionate covenant monitoring framework to help them in regularly tracking the strength of the covenant.​

Shortly after commencing the work, the employer’s parent announced that it was separately floating the employer’s wider division via an initial public offering. Furthermore, as part of a related restructuring, a bulk transfer was proposed from another DB scheme in the group to create a new section within the scheme we were advising.​

Our solution

We assisted the Trustees to understand how the various transactions would affect covenant strength. We also successfully led a workstream to get a formal information sharing protocol in place with the employer, which would govern the financial data to be provided to the ourselves and the Trustees on a regular basis going forwards.​

The result

​We are now assisting the Trustees in assessing both sections’ covenants regarding their upcoming triennial valuations.

How we can help

We help trustees understand and monitor the employer covenant.

We help pension scheme trustees and sponsors to determine the ultimate destination for their scheme and help them put together a plan to get there, including how to effectively manage the risks they face along the way.

We help trustees achieve their strategic goals, with solution-led, appropriate advice.

Get in touch.

If you would like to know more about our services and how we can help you with pensions and benefits.

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