We have assembled our Pensions Advisory team of experts from diverse, multi-disciplinary backgrounds, including accounting, corporate finance, insolvency, forensic accounting, actuarial and banking. The result is a team of that understand pensions from many view points.
Our team helped to shape the UK pension regulatory framework at its inception, advising the Pension Protection Fund on its initial risk-based levy, and the Pensions Regulator on its original Clearance Guidance and Scheme Specific Funding rules. We therefore have a deep understanding of the regulatory framework and the expectations of the Pensions Regulator for Scheme Specific Funding and the setting of appropriate Technical Provisions.
Our varied backgrounds give the BDO Pensions Advisory team a unique ability to understand the current and future potential economic value of the Employer to the Plan, and also allow us to clearly identify and calibrate the options available to the Trustees, whether that be in relation to Scheme Specific Funding or transactions.
We advise Trustees and Sponsors in respect of:
Scheme Specific Funding Valuations: We provide a proportionate assessment of the Employer Covenant strength and the affordability of future contributions. We also advise on sponsor proposals to promote sustainable growth and on mechanisms for supporting and enhancing the outcome for the scheme. We make clear and concise recommendations and work in a collaborative and constructive way with Trustees and Sponsors.
Transactions: We advise on the impact of transactions on the Employer Covenant. These typically include Mergers (corporates and schemes), demergers, takeovers, re-financings, recapitalisations and substantial dividend payments. We seek to provide a range of viewpoints and mitigation recommendations, where required, that can facilitate negotiation and a rapid agreement between parties.
Restructuring and insolvency: We provide advice to trustees and sponsors in respect of both solvent and insolvent restructurings. Solutions include Regulated Apportionment Arrangements, benefit re-design, Company Voluntary Arrangements and Administration.
Regulatory and expert witness: We advise trustees or potential targets in respect of regulatory action by the Pensions Regulator. We can also provide expert witness services in relation to Employer Covenant considerations.
Pensions M&A: We support Corporate Finance teams, Private Equity investors, hedge funds, vendors and purchasers to understand the pension risks associated with a transaction. We provide clear and concise advice enabling a rapid overview of DB obligations in the UK and other jurisdictions.
Corporate DB pension advice: We advise corporates on the funding and risk management of their DB pension obligations to ensure that the level of the Technical Provisions is appropriate and also that any deficit is funded as efficiently as possible, either via cash contributions or through the use of security, guarantees or contingent assets.