Employer covenant reviews
Guidance released by The Pensions Regulator proposes that, as a minimum, trustees should undertake a full covenant review at each triennial valuation. Also as a covenant can change quickly, it is further recommended that the covenant is reviewed regularly between the formal reviews. Changes in covenant can have implications for trustees’ investment and funding strategies and therefore trustees should have a contingency plan mapped out so that prompt and effective action can be taken should it be required.
There are many factors that need to be considered when you are deciding on the required depth of a review and how frequently it is required. Follow this link to The Pensions Regulator website for further information. If you are looking at this for the first time, we would recommend downloading the Guidance issued in August 2015.
Whether an employer covenant review for a triennial valuation or an update, FRP Pensions can offer bespoke advice tailored to the specific situation.
We can carry out both in-depth reviews with detailed specific scopes as well as high level reviews which draws the attention of trustees to areas on which they should focus. Our reports to clients provide clear, concise and pragmatic advice together with action plans to facilitate negotiations which will have been shared and agreed with other appointed advisors.