The new DB funding code – a whole new world for covenant advice
26 January 2023
In December The Pensions Regulator (TPR) issued its second major consultation on the new scheme funding regime that is due to apply to all DB schemes with valuation dates from 1 October 2023. It is clear that the new regime will require a much greater focus on covenant strength for many trustees and sponsoring employers.
Watch our on-demand webinar where we take a deeper look into the covenant aspects of the proposed Code and its underpinning draft DWP Regulations, and look forward to how TPR may further expand on these points when it issues even more extensive covenant guidance later in 2023.
This webinar is the second in a mini-series. It follows on from our webinar: “The new DB funding code – the good, the bad and the (potentially) ugly” and focuses on a more detailed look at the important covenant aspects of the new funding regime.
This webinar explores:
- The new concepts of covenant visibility, reliability and longevity that will have a direct impact on what funding and investment strategies are acceptable going forwards – and how they can be applied in practice
- The impact on recovery plans from applying the principle of ‘reasonable affordability’
- The need to strengthen guarantees and other contingent assets in a lot of cases if they are to count meaningfully towards covenant assessments
- New expectations on trustees that could impact on corporate (and charity) business plans, including dividends
- The depth of covenant analysis that could be required for schemes looking to take a Bespoke route for their valuations, given that covenant is central to underpinning any variation from Fast Track parameters
- Actions trustees and employers should take now and over the coming months
1 hour (inc Q&A)