FOR EMPLOYERS

COVENANT ASSESSMENT

The Pensions Regulator defines the employer covenant as ‘the extent of the employer’s legal obligation and financial ability to support the scheme now and in the future’.

The employer covenant is essential to the operation of the Fund. The ability to call on support from employers in the future allows us to adopt an investment strategy that seeks to optimise returns, which ultimately benefits employers through lower contributions. It is therefore important that we understand the covenant strength of each employer in the Fund.

Our assessment of each employer’s covenant helps us to understand how much support the employer can provide to the Fund, both in the short and longer term. Employer support is taken in the context of how much cash can be made available to the Fund, as and when such cash support might be needed.

Each employer’s covenant strength is reflected in the assumptions used to value the Fund’s liabilities.

If you would like to understand more about how employer covenant is assessed by the LPFA, then please contact the Employer Management Team.

Cookie control centre

We use cookies to provide you with a better service. Essential cookies provide core functionality and you cannot use the website without them. Essential cookies do not collect any personal information or track your activity on the website. Other cookies, such as Analytic cookies and Functionality cookies, are not essential. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

Strictly Necessary

Always active
null

Name: october_session

Provider: lpfa.org.uk

Duration: 2 Years

Type: First Party Cookies

Name: admin_auth

Provider: lpfa.org.uk

Duration: 5 Years

Type: First Party Cookies

Name: preference_cookie

Provider: lpfa.org.uk

Duration: 1 Year

Type: First Party Cookies

Performance Cookies

null

Name: _ga

Provider: lpfa.org.uk

Duration: 2 Years

Type: Analytics Cookies

Name: _gat_gtag_UA_199637294_1

Provider: lpfa.org.uk

Duration: 1 Hour

Type: Analytics Cookies

Name: _gid

Provider: lpfa.org.uk

Duration: 1 Year 1 Hour

Type: Analytics Cookies

Functional Cookies

null

Name: NID

Provider: google.com

Duration: 1 Year 6 Months

Type: Third Party Cookies

Name: VISITOR_INFO1_LIVE

Provider: youtube.com

Duration: 6 Months

Type: Third Party Cookies

Name: YSC

Provider: youtube.com

Duration: End of browser session

Type: Third Party Cookies