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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.

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Case studies

Using a negative pledge to safeguard an existing dividend policy.

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

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

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Using contingent contributions to achieve fairness across stakeholders

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