Sponsor-focused Services

In all other business areas, sponsors drive the agenda; this should be no different in defined-benefit pensions.

With extensive experience in employer-nominated trusteeship, we have a deep understanding of the sometimes conflicting needs of sponsors and trustee boards. We assist defined benefit sponsors in funding negotiations, working in partnership with trustees and their advisers to achieve fair and balanced funding outcomes. This collaborative approach aims to secure member benefits while also considering the interests of the business and shareholders.

Sponsors must evaluate where to allocate resources, considering factors like internal business returns, pension scheme returns, and risk-adjusted returns. They should also contemplate what they would do in the absence of the scheme and why those actions are not pursued regardless.

Other stakeholder needs, including those of shareholders, banks, credit agencies, and suppliers, and their perspective on pension risk, are also crucial. Sponsors need to proactively communicate the real story of the employer covenant and ensure that the capital and resources devoted to the scheme are effectively balanced against the competing demands of the business and its shareholders.

Additionally, sponsors should assess how Integrated Risk Management (IRM) is implemented and whether their agenda is adequately represented in the scheme’s IRM strategy. This includes verifying that any contingency plans reflect feasible actions the sponsor is willing to undertake.

Over the years, we've guided many sponsors, collaborating with trustees and advisers to achieve superior results. Contact us to discover how we can support your objectives.