Pensions Advisory

Assisting employer and trustee negotiations

Overcoming a breakdown in trust following a company acquisition

Background

The trustees pension scheme was seeking increased contributions and asset-based security from our client, a manufacturer and distributor of packaging.

Action

FRP was appointed by the employer to advise on the pension employer covenant – its legal obligation and financial ability to support the scheme now and in the future – and undertake a full review of its financial position. Our client’s group had recently been acquired by a new owner based in Europe.

As a result of this transaction there had been a breakdown of trust between the trustees and our client. In addition the trustees believed that the former owners had not adequately addressed the obligations to the pension scheme at the time of the sale.

Outcome

The detailed review by our Pensions Advisory team provided a clear picture of the employer’s covenant, and provided a robust platform for resolving negotiations between the employers and the trustees.

As part of those negotiations the employers were merged into one company using a flexible apportionment arrangement, which our team assessed and was able to get approved by both parties.

Our detailed review provided a robust platform for satisfying negotiations between the employers and the trustees Gerland Smith Pensions Advisory

Related team

Gerald Smith

Gerald Smith

  • Partner
  • Pensions Advisory
  • Birmingham