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Types of contingent funding

GROUP COMPANY GUARANTEES

The parent, or another group company, makes a legally binding commitment to provide support to the pension scheme in certain circumstances.

Case studies

Using a negative pledge to safeguard an existing dividend policy.

Using a Group Company Guarantee to manage Section 75 debt risk with the bonus of a big PPF levy saving!

Using an upside mechanism and escrow to mitigate the adverse effect of the Corporate Insolvency and Governance Act 2020 (“CIGA”) on benefit security.

Using contingent contributions to achieve fairness across stakeholders