United Kingdom

Aon Employer Covenant Consulting Services

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Aon is a leading provider of covenant review services and has worked with over 150 clients in this area since 2008.

Our employer covenant team is staffed with accounting and credit specialists who between them have over 50 years of relevant experience.

We advise trustees or corporates with schemes that vary in size from £1 million to over £4 billion and we are active across all business sectors.

In 2013, Aon was awarded "Sponsor Covenant Provider of the Year" by UK Professional Pensions.


Our approach to Covenant Assessment:

  • We have a modular and flexible approach to employer covenant analysis - providing the desired level of analysis as required by clients.
  • Aon's covenant team is very comfortable working with other advisors as we do on virtually all of our clients. We work closely with scheme actuaries and trustees or corporates to ensure an integrated approach to employer covenant analysis.
  • Our covenant assessment approach is closely aligned with that of the Pensions Regulator (as outlined in their August 2015 guidance) which ensures that the Trustee can be confident that all of the relevant issues are covered.
  • We are acutely aware that our analysis is generally just one step in a more complex valuation process and, therefore, we always ensure that we deliver on time and to budget.
  • If there were any difficulties in meeting agreed delivery dates, then we would highlight these issues at the earliest possible date and look for alternative solutions with the Trustees.
  • We manage our client relationships carefully to avoid "surprises" and to ensure that trustees can easily incorporate our advice into their overall objectives/requirements.
  • We offer a cost effective service built on concise reports.

Covenant capabilities - what we can provide:

  • Covenant assessments
  • Covenant monitoring (KPI's & triggers)
  • Affordability analysis
  • Stress testing
  • Integrated risk management
  • tPR Clearance analysis / mitigation advice
  • PPF guarantor certification analysis
  • Ad-hoc covenant advice

What differentiates us from other covenant providers?

  • Our lead consultants stay involved at all stages of analysis and delivery
  • We are used to working very closely with actuaries and other advisors
  • We are part of an organisation that has a trustee focus but which also provided pensions consulting services to corporates
  • We offer a quality service at a reasonable price
  • We focus more on trustee and corporate support and less on writing long reports
  • We are not restructuring or insolvency specialists or investment bankers (as are many of our competitors)

September 2015 - Updated Covenant guidance from the Pension Regulator

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Trustees who do not use an external covenant advisor may struggle to comply with the Regulator’s updated guidance on covenant assessment and monitoring. These slides outline the Regulator’s latest guidance and include a useful checklist for trustees to consider after they have assessed the employer’s covenant and 23 examples (case studies) to review.



Aon Hewitt Limited is authorised and regulated by the Financial Conduct Authority.


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