If an employer is no longer be able to deal with the burden of their defined benefit (DB) scheme, even if their underlying business is profitable and cash-generative, it can be in the best interests of key stakeholders to restructure.

In these situations, the options for dealing with the pension scheme must be considered in detail to ensure all members are treated fairly. Any restructuring proposals must be acceptable to The Pension Regulator (TPR) and/or the Pension Protection Fund (PPF) when clearance and PPF entry are required.

We offer specialist advice to employers and trustees. We have developed a number of innovative proposals for employers and have guided trustee clients through proposals drafted by their employer, giving our view on necessity (given the health of the employer) and feasibility.

In insolvent restructurings, we advise on whether the underlying conditions have been met for the PPF and TPR to consider restructuring proposals.

We also advise other financial stakeholders, particularly lenders, in the context of restructurings which involve pension schemes, and can provide actuarial advice to help design an affordable post restructuring benefit structure.

Our services for trustees:

  • Viability review and assessment of inevitability of insolvency
  • Entity priority and insolvency modelling
  • Restructuring feasibility studies
  • Advice on Regulated Apportionment Arrangements (RAAs)
  • Scenario and options planning, including risk analysis and asset/liability modelling
  • Moral hazard investigations
  • Negotiation support between all parties, their advisers and the relevant regulatory bodies
  • Advising on and assisting with the management of pensions regulatory oversight

Overview of services for employers and other stakeholders:

  • Solvent and insolvent restructuring proposal development
  • Entity priority modelling and insolvency analysis
  • Project management of restructuring plans
  • Scenario and options planning, including risk analysis and asset/liability modelling
  • Exit option planning for creditors
  • Negotiation support between all parties, their advisers and the relevant regulatory bodies
  • Advising on and assisting with the management of pensions regulatory oversight

Partner, Head of Pensions Advisory Services Paul Brice

+44 (0)20 7728 3423

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