Sponsor business drivers, cost bases and debt structures should be well understood
LCP finds ‘significant number’ of DB trustees have low confidence in medium-term strength of employer
Economic outlook has not led to increased monitoring for two thirds of industry
Warnings from industry professionals not to underestimate the materiality of covenant risk
Cardano adopts ‘measured’ approach to future initiatives
Uncertainty guides lawyer advice despite lower worry over regulatory bite
Defined benefit (DB) pension schemes must stay alive to heightening risks to funding from sponsor covenants, climate change and longevity experience, The Pensions Regulator (TPR) says.
Schemes need to dynamically and closely monitor the position of their employer covenant and its corporate longevity, ensuring the assessment is not conducted in isolation, the Employer Covenant Practitioners Association (ECPA) says.
Michael Bushnell looks at the continuing impact of the pandemic on employer covenant and ESG risks, and how schemes can plan ahead.
As the number of Coronavirus cases continues to grow, Calum Cooper looks at the potential impact on DB scheme liabilities and sponsor covenants.