Pensions advisory

A specialist covenant advisory service for sponsoring employers, trustees and other stakeholders of defined benefit pension schemes.

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Today’s complex pensions landscape requires expert guidance, especially for businesses undergoing major transactions or facing financial challenges.

S&W’s specialist pensions advisory team helps sponsoring employers, trustees and other stakeholders of defined benefit (DB) pension schemes evaluate the strength of the employer covenant and understand and manage the impact of corporate events.

The importance of getting it right

The Pension Schemes Act 2021 widened the Pension Regulator’s (TPR) powers and introduced new criminal offences, while the 2024 defined benefit funding code has tightened requirements for covenant assessments. Getting the right advice is essential to ensure compliance and protect members’ benefits.

Improved scheme funding has accelerated endgame planning. While insurance buy-ins and buy-outs remain popular, many schemes are exploring alternatives such as:

Run-on strategies
Superfund consolidators
Capital-backed journey plans

Evaluating employer covenant strength across these options is critical to making informed decisions.

How we can help

Employer covenant assessment and monitoring
Forward-looking financial reviews and ongoing monitoring to assess employers’ ability to meet pension obligations, aligned with TPR’s key concepts:
- Free cash generation
- Reliability period
- Covenant longevity
Transaction support
- Structuring efficient transactions
- Assessing covenant impact
- Developing mitigation strategies
- Negotiating with stakeholders
- Preparing TPR clearance applications
Restructuring and insolvency
- Options analysis and contingency planning
- Support during live or threatened regulatory investigations
- Advice on TPR’s anti-avoidance powers (contribution notices and financial support directions)
- High-quality support in the most challenging scenarios from a trusted panel member of the Pension Protection Fund’s restructuring framework
Expert services

Expert employer covenant services in contentious scenarios, including advice to regulators and regarding the use of their powers.

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Whether you’re a trustee safeguarding member benefits or a corporate sponsor managing pension obligations, our specialists can help you navigate complexity and achieve your objectives.