Pensions deficiency: Help establish an optimum recovery plan

The UK Scheme Trustees were keen to assess the UK employers' and global group's restructuring strategy.
 
Baker Tilly helped them establish an optimum recovery plan for the Scheme deficit through an independent assessment of affordability and the group-wide covenant.

"What I particularly liked about Baker Tilly was that they tailored their work to what we wanted, and didn't attempt to use a sledgehammer to crack a nut. Their report and advice were clear, concise and understandable to lay Trustees. I thought they provided good value for money."
Independent Trustee Chair

A series of global mergers and de-mergers created a new $2billion turnover group. As part of the transactions significant dividends were paid to the immediate and ultimate holding companies. Additional debt was also granted and security taken over assets of the de-merged group.
 
Following a review of the new employer's financial covenant we suggested that the trustees take legal advice regarding the payment of the dividends and notify the Regulator of the security granted. We then recommended the scheme seek a payment to reduce the deficit, together with negative pledges, charges, and a guarantee from the employer's parent undertaking.