3fae9351_pport___The_Pensions_Regulator__Term
[Definition] The covenant is an employer’s legal obligation and its ability to fund the scheme now and in the future. The strength of it depends upon the robustness of the legal agreements in place and the likelihood that the employer can meet them. As scheme sponsor the employer underwrites the risks to which the scheme is exposed, including underfunding, longevity, investment and inflation. [Term] 
Covenant
Monitoring employer support | The Pensions Regulator
Term