Guide to Employer Covenant

What information does the guide contain?

In a defined benefit pension scheme one of the most important things for a trustee to understand is the strength of the employer covenant. The Scheme is a creditor of the employer and encouraged by The Pensions Regulator to examine their position in a similar way to a bank creditor.

This means understanding:

  • Which employers have a legal responsibility to fund the scheme
  • The financial strength of those employers
  • The likely ability of the employers to continue to fund the scheme going forward
Guide to Employer Covenant

This guide was put together by Steve Carrodus – to find about more about Steve CLICK HERE