All Covenant articles
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OpinionSPP: Is tail risk starting to wag the dog?
Adrian Bourne, co-chair of the Society of Pension Professionals’ covenant committee, outlines recent changes to the ‘value at risk’ measure for DB pension schemes and what trustees and other stakeholders must now consider.
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People NewsAppointments: TPR hires lead for commercial master trust oversight
The latest hires, promotions and appointments for the week ending 17 October 2025.
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News‘More flexibilities’ for trustees to consider in DB Funding Code
Three-quarters of respondents quizzed during a recent webinar hosted by LCP said they believed there was more for trustees to consider, including aspects of covenant, surplus, and investment strategy.
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NewsDB Funding Code one year on: Aon flags challenges for trustee boards
Exactly a year after the Pensions Regulator’s Defined Benefit Funding Code came into force, Aon says the “baseline for funding standards has been raised”.
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NewsMajority of DB schemes ‘need covenant work’ before surplus can be released
Covenant experts say pension fund trustee boards must ensure their sponsor covenant information reflects their surplus position and is appropriate to support any future surplus release decisions.
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OpinionAssessing covenant reliability in an increasingly unpredictable world
From commercial pressures to tariff troubles, and national insurance hikes to geopolitical volatility, there are myriad issues affecting employer covenants. Vidett’s Mike Birch explores how these interact with the regulator’s new DB Funding Code.
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OpinionCovenant comes of age: A journey from crisis to confidence
The importance of the employer covenant has helped shape UK pensions regulation, writes Arabella Slinger of the Society of Pension Professionals. The Pension Schemes Bill shows there is no sign of its importance reducing.
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NewsAnnual Funding Statement: Covenant assessment clarity welcomed
In its Annual Funding Statement, the regulator clarified aspects of covenant assessments to help trustee boards through the first valuations under the new funding regime.
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OpinionDB surplus release: Three key questions to drive better outcomes
The government’s plan to permit the extraction of surplus assets marks a pivotal moment for DB pensions but needs careful handling, writes Alex Beecraft of the Society of Pension Professionals.
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NewsDon’t ignore covenant risk, says SPP
The Society of Pension Professionals has published a new “myth-busting” paper around covenant risks in light of the new DB Funding Code.
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NewsTPR warned of ‘levelling down’ in DB funding code consultation
Respondents to the Pensions Regulator’s first consultation on its imminent defined benefit funding code have told the watchdog of their concerns over schemes “levelling down” to meet its fast-track valuation pathway, as well as noting their fears over a loss of flexibility.
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NewsSmaller schemes face ‘significant’ costs with TPR DB funding code
While the Pensions Regulator foresees an initial hike in implementation fees followed by reduced costs in the long term, experts have warned that the new defined benefit funding code will be particularly onerous for small schemes.
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NewsTPR ‘dials down leverage’ in DB funding code fast-track
The Pensions Regulator has lowered the amount of leverage that it deems acceptable for schemes to have to meet the requirements for a “fast-track” valuation, as part of its new defined benefit funding code.
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NewsBigger LDI collateral buffers will increase sponsor reliance, MPs told
The Work and Pensions Committee has been reminded of the trade-off between bigger collateral buffers and investment returns, with one chief executive warning that buffers of 400 basis points would force some schemes to “pare back their growth ambitions” and increase their reliance on sponsor contributions.
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NewsTwo-fifths of sponsors uncertain on accounting for Covid-19
On the go: A significant proportion of defined benefit pension scheme sponsors are still working out whether and how to make an allowance for Covid-19 in their year-end accounts due to a range of issues, according to LCP.
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NewsProfit warnings from DB sponsors jump 38%
On the go: Profit warnings issued by UK-listed companies with defined benefit pension schemes increased by 38 per cent year on year in the third quarter of 2022.
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NewsAcademics back strike action over USS ‘pension cuts’
The Universities and College Union has secured a mandate to strike in 150 universities over member benefit cuts in the Universities Superannuation Scheme.
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NewsClara-Pensions expects consolidator competition ‘within a year’
On the go: The commercial consolidator Clara-Pensions expects to see other offerings providing competition in the market “in a year’s time”, according to chief executive Simon True, despite the “unhelpful economic environment”.
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NewsEmployers face contribution calls to maintain schemes’ hedging ratios
The sponsoring employers of defined benefit pension schemes look set to be called on for advances of contributions or additional funding, as schemes seek to preserve their liability hedging and lock in their improved funding levels.
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NewsEmployer DC contributions to exceed DB ‘in 5 years’
On the go: The expected decline of sponsor contributions towards defined benefit pension schemes should see businesses’ defined contribution payments outstrip these within five years, according to new research.