Trustees urged to understand importance of robust stress testing and regular monitoring
Organisation highlights ‘ongoing value’ of proportionate and regular covenant monitoring
Organisation said new funding regime means a different approach to covenant
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.