TPR’s New Covenant Guidance
Pensions
Key themes
- Trustees must create recovery plans for deficits based on reliable employer cash flow projections.
- New metrics, Covenant Reliability and Longevity, will guide journey planning and risk management.
- Annual covenant monitoring and stress testing are required to assess and manage scheme risks.
TPR’s recent publication of its new Covenant Guidance has changed how covenants should be considered in funding, investment, and journey planning.
Isio Covenant Solutions (ICS) assists sponsors and trustees in understanding what the new regulatory guidance means for them. We can support by advising on the implications for investment, funding, end game options, risk management and corporate restructuring or transactions.
This article will help you understand the new key covenant concepts and some of the covenant challenges and opportunities.
Webinar
What does the new covenant guidance mean for you?
Join Mike Birch, Client Director at Vidett, Matt Cooper, Head of Isio Covenant Solutions and Jill Forsyth, Covenant Specialist at Isio as they help you better understand what the updated covenant guidance will mean in practice. During this 25 minute discussion, we explore some of the covenant considerations and opportunities for a range of scheme and sponsor scenarios to help you consider a right-sized approach to covenant under the new DB Funding regime.
Watch now
Matthew Cooper
