20-20 Trustees specialises in finding solutions that help our scheme members and sponsors in distressed and low affordability circumstances and we have successfully achieved this in numerous cases.
Situations where we have been able to assist include:
Schemes facing financial difficulty, reduced affordability or distress
- Sponsor struggling to meet contribution requirements
- Sponsor close to failure/insolvency
- Emergence of unfunded liabilities e.g. pension equalisation issues
- Communication breakdown between relevant parties
- Reduced affordability of the scheme due to a required increased capital expenditure or other investment programme
Trustees in need of expert support, especially complex funding negotiations
- Difficult or acrimonious funding negotiations
- Complex investment strategy proposals
- Creative non-cash security arrangements
- With regulated businesses such as insurance, banking or utilities
High levels of scheme deficits and difficult trading conditions can lead to situations where more innovative and drastic thinking is required. Similarly, we recognise that businesses need to invest for their future, and that this investment can be enhancing, or even crucial to the security of the sponsor’s pension scheme.
In times of scheme distress, parties can become emotive and this can frustrate the finding of optimal solutions. Our calming, inclusive and commercially pragmatic approach helps bring such parties around the table so that meaningful discussions can ensue. We then manage those relationships to take the project through to its end.
Our experience in this field gives us a deep understanding of the drivers of all associated stakeholders, including financiers, the PPF and The Regulator. We use this to help minimise the risk of any stakeholders inadvertently falling into ‘material detriment’ or ‘moral hazard’ breaches of the law.
We have extensive knowledge and experience of scheme benefit and debt compromises, including the use of Regulated Apportionment Arrangements, and have helped many sponsors avoid insolvency whilst also optimising the benefits that our members receive.