MyCompanyPension.co.uk - Helping members of occupational pension schemes to better understand their benefits.

17th November 2017
:: Scheme Member | How secure is my pension? | The employer covenant

The employer covenant  
The ability to pay for scheme benefits is called the covenant – it reflects the sponsoring employer’s commitment to the pension scheme and its ability to meet that commitment by coming up with the contributions when they are required - not just now - but many years into the future.
 
Pension benefits are very expensive. Many employers are currently paying 20% to 25% of their payroll into the pension scheme.
 
As part of its overall financial considerations, even where the future stability of a company is not in question, your employer may look at the viability of continuing to fund a defined benefit scheme.
 
Find out more about the employer covenant, and how it could affect you.
 
To find out more, choose one of our free Factsheets on the right to match your category of membership.
 
 
Not sure which category of member you are? See our definitions:
 
 
 
 
 
See our Glossary for definitions of phrases in our Factsheets
       
 
 
 
 
 
  Defined Benefit scheme members
 
The employer covenant - for Active Members of Defined Benefit Schemes
The employer covenant - for Preserved Members of Defined Benefit Schemes
The employer covenant - for Pensioner Members of Defined Benefit Schemes
       
 
  Money Purchase scheme members
 
This Factsheet is not yet available to members of Money Purchase schemes
This Factsheet is not yet available to members of Money Purchase schemes 
 
     

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