Re-structuring
Services to employers
Uncharted territory
Distressed employers have a number of options when it comes to their defined benefit pension obligations.
There have been a number of high profile cases recently where pension scheme liabilities have significantly and detrimentally affected the viability of the sponsoring business.
Employers are finding themselves in uncharted territory in tough and uncertain economic times. Often, business objectives are hindered by the pension scheme, and it is important to know that help is available to navigate these challenging circumstances.
Spence’s innovative and pragmatic approach focuses on three key areas to help identify and implement the best outcome for employers and scheme members.
A wealth of pension restructuring experience
We have an experienced team to support corporate entities and to help find positive, pragmatic solutions for all parties concerned.
Our specialist consultants have gained their experience through an ongoing and close working relationship with the Pensions Protection Fund (PPF) and over 20 years’ experience of working with a variety of employers across the economic spectrum.
This market-leading insight makes us uniquely placed to help employers make the best of a difficult situation.
Streamlined with innovative scheme technology
Our award-winning software, Mantle®, allows us to assess pension scheme liabilities dynamically, adding real value. We can examine the progression of pension scheme liabilities over the full spectrum of future economic scenarios to provide valuable insight into the future viability of the employer, given its pension scheme obligations. This insight can highlight some uncomfortable truths. Having the tools to address these as early as possible can enhance the possibility of finding a suitable solution that benefits all parties.
Our software can answer questions such as:
- What is the chance of being 100% funded on a PPF basis in 10 years on the current contribution basis? How should we invest our assets to optimise this likelihood?
- What is the chance that contributions to fund the scheme will exceed £amount in the next 10 years?
- What cash injection would be required from the sponsoring employer to ensure PPF benefits are always covered?
Our modelling capability allows us to put facts and figures to these important questions, which can add real value to corporate discussions.
Strong project management
Providing advice to employers in distressed situations is a very specialised area and, as each case is different, there is no ‘one size fits all’ solution. However, we have a tried and tested consulting process that delivers tangible results.
When combined with our strong project management skills, this approach dovetails well with any advice you may be receiving from other parties such as legal advisers and covenant assessors.