ORA assistance

Case studies

The background

In 2021 Helen Abbott was appointed by the Trustees of a large Irish DB Scheme with an employer in the banking sector, in order to assist them in identifying key covenant risks in the context of the Scheme’s 2021 valuation.

Our solution

We provided the Trustees with detailed conclusions around the affordability of contributions, the ability of the employer to support downside shocks, and potential risks to the future strength of covenant.

The results

Further recommendations were provided to the Trustees on the usage of contingent assets and potential value sharing mechanisms to help them to achieve a good outcome in their negotiations with the company.

In 2023 Helen has been re-engaged by the Trustees to assess the employer covenant for the purpose of their ORA for the Scheme.

Corporate change can often occur unexpectedly or quickly. For those sponsoring or managing pension schemes, the implications can be significant. DB pension liabilities and future DC pension arrangements, along with associated employee benefits, are a key consideration in any commercial transaction today.