Understanding the ability of an employer to support its pension scheme is a central component of trustees' risk management and has been a core theme of funding guidance published by the Pensions Regulator.  

Argyll helps trustees understand the employer covenant.  The Regulator has made it clear that it expects trustees and employers to employ Integrated Risk Management in managing covenant, funding and investment risks.  

By working closely with their actuarial, legal and investment advisers, we ensure the covenant is integrated into trustees’ funding and investment decisions, as expected by the Regulator.  We also support trustees when the covenant changes, usually as a result of corporate activity such as a merger or acquisition, debt refinancing or business restructuring. 

We provide independent, conflict-free advice on all aspects of the employer covenant, including:
  • Covenant assessments and monitoring
  • Funding negotiations 
  • Corporate transactions and mitigation negotiation
  • Creative funding solutions and use of contingent assets
  • Insolvency analysis and outcome statements
  • Investigations into the availability of TPR’s moral hazard powers
  • Affordability analysis
  • Asset Backed Contribution stressed insolvency valuations 
  • Guarantee testing for PPF levy
  • Scheme apportionments 
We tailor our service to each client which can range from ‘one-off’ covenant assessments to much larger transaction- or funding-based projects.  

Contact us for more details of our services or for a no-obligation, confidential discussion of your requirements. 

Integrated covenant advice

© Argyll Covenant Advisory Ltd 


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