Pensions Funding, Security & Restructuring

The Pensions Regulator therefore expects trustees to take an integrated approach to funding, investment and employer covenant risks. We help clients navigate this increasingly sophisticated area working closely with employer covenant advisory firms.

Our practice is well balanced between trustees, employers and corporate groups. We understand that there are different perspectives and can foresee where stumbling blocks may arise. Our specialist Pensions, Finance, Security and Restructuring lawyers work as one team to cover the full range of clients' needs, including:

strategic and tactical advice during funding negotiations, including the legal "balance of power" in the scheme's funding rules, and documenting scheme funding settlements
analysing and advising on the legal aspects of the employer covenant and working with employer covenant advisers to help sponsors and trustees get a complete picture
structuring and implementing contingent support and other security for pension scheme funding including guarantees, escrow arrangements, security over assets, collateralised structures, asset-backed contribution (ABC) arrangements and bank letters of credit
advising on the legal aspects of long-term pension scheme funding arrangements with a view to the scheme's overall journey plan towards self-sufficiency and/or buyout
advising on the implications of non-UK entities and newly incorporated SPVs sponsoring a scheme
dealing with employer exits and group reorganisations that affect the covenant, including options for management or recovery of employer "section 75" debts and the use of flexible apportionment arrangements, scheme apportionment arrangements and similar mechanisms.

We also assist sponsors and schemes where the employer is financially distressed or the scheme is jeopardising the ongoing viability of the business. We are well-versed in the full range of issues in this area including:

insolvency and restructuring of sponsoring employers and groups
implications of overseas insolvency for UK pension schemes
Pension Protection Fund levies, compliance and assessment period management.

Our work in this area is often at the cutting edge of law and practice and our industry links and appointments ensure we are engaged with developments in regulatory policy and changes to legislation.

Industry appointments

We participate in a wide range of pensions industry groups including the Legislative and Parliamentary Sub-Committee and the Covenant and Finance Sub-Committee of the Association of Pensions Lawyers. See our full list of industry appointments here.

Advising Laura Ashley on pensions and other aspects of refinancing, restructuring and administration.
Advising the trustees of the Arcadia Group Pension Schemes on new funding and security arrangements in connection with company voluntary arrangements (CVAs) for group companies.
Acting for the trustee of the British Steel Pension Scheme on separation from Tata Steel through a 'regulated apportionment arrangement' and setting up a replacement scheme offering members an alternative to PPF compensation
Advising the Trustees of the Lehman Brothers pension scheme on all aspects of the bank's insolvency including PPF assessment, the ground-breaking Financial Support Direction litigation (up to the Supreme Court) and on the settlement and buyout to secure all member benefits in full
Advising Carpetright plc on its successful restructuring
Advising the Trustee of the C&J Clark Pension Fund with its most recent valuation and covenant discussions with its sponsor group

Advising the Trustee of the MGN Pension Scheme (Reach plc's largest DB pension scheme) with its most recent valuation and covenant discussions with its sponsor group
Advising the Akzo Nobel (CPS) Pension Scheme on funding and contingent support arrangements in relation to a €10bn corporate disposal.
Supporting the Willis Pension Scheme through the US$18bn Willis-Towers Watson merger including providing advice in relation to US parent company, funding and security issues.
Advising the trustee of the Guilbert UK Retirement Benefits Plan on the pensions and structuring aspects of the sale by Office Depot, Inc. of its European business to The Aurelius Group
Acting for the trustees of a major blue-chip pension scheme in relation to a £1 billion contingent covenant support agreement
Advising The Greenalls Group Pension Trustees in relation to the restructuring of the De Vere hotels group, one of the largest debt-for-equity swaps in UK corporate history