Contingent funding approaches are rapidly becoming more widespread, partly thanks to big changes in regulation.
They can be a great way to protect member benefits as well as the shareholders and other creditors of the sponsoring employer.
As contingent funding approaches have now moved from a niche area of pensions management to the mainstream, they should be considered by every trustee board and sponsor.
How can we help
We will help you meet the new funding requirements whilst making most efficient use of company resources. We support companies and trustees to focus on how members will get their benefits without compromising shareholder value.
We help companies and trustees consider the full range of contingent funding approaches in many different situations. Some examples include:
- Designing and implementing a true Integrated Risk Management framework for pensions, addressing both upside and downside contingencies and responding flexibly to ongoing changes
- Designing an investment strategy that is appropriately supported
- Managing events that change the covenant strength, including M&A, debt restructuring, “covenant leakage” events and so on
- Understanding how contingent funding can be used to help support a “Bespoke” approach to pension funding
- Providing support that maintains flexibility for the sponsoring entity
- Minimising the risk of a trapped surplus when executing a full scheme buy-in
- Managing the risks of overfunding
- Minimising the PPF levy
- Responding to the pensions implications of the Corporate Insolvency and Governance Act
- Helping to manage potential conflicts between dividend policy and the pension scheme
Latest viewpoint articles
How we can help
We help sponsors of pension schemes understand and manage the costs and risks associated with supporting their current and legacy pension schemes as well as other employee benefits.
Whether to enter a DB Consolidator is a complex decision. Sponsors and Trustees must be sure it is the right decision for their scheme and its members. We can help.
We provide expert practical advice on the pensions issues involved when buying or selling businesses.
We work with you and your finance team to ensure that your ongoing statutory duties and compliance exercises are done quickly, efficiently and accurately.
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.