UK - Aon Consulting has launched a specialist trustee service to provide support for covenant assessments of sponsoring employers.
As a result of the 2004 Pensions Act, it is necessary for trustees of defined benefit pension schemes to undertake a thorough covenant assessment of their sponsoring employer.
Paul McGlone, principal & actuary at Aon Consulting, said: "We have seen over the past year an increase in trustee activity around careful monitoring of sponsoring employer covenants. Whilst we already offer valuable trustee services, it made sense to extend our support into this area."
Aon said this type of service had been mainly provided by accountancy firms in the past.
In this week's Pensions Buzz, we want to know whether or not you believe that business facing financial distress should be able to suspend their auto-enrolment contributions to avoid rising costs.
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.
The funding gap across FTSE 350 schemes could be slashed by as much as £275bn if schemes look beyond traditional ways of creating value. Victoria Ticha examines how
There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.