Assessing the proposal Sample Clauses

Assessing the proposal. The administering authority will make a decision on whether to enter into a DDA within the sooner of 21 days of receiving a request or when the Pension Fund Committee are next scheduled to sit to take such a decision, but this may vary to reflect specific circumstances, for example if the administering authority chooses to request a covenant assessment then the process may take longer. To reach a decision the administering authority will consider: • The size of the exiting employer’s residual liabilities relative to the size of the Fund; • The size of the exit payment relative to the costs associated with entering into a DDA; • Whether a debt spreading agreement or suspension notice would be more appropriate (see specific circumstances below); • Any information provided by the exiting employer to support their covenant strength, including any information on a guarantor or other form of security that the employer may be able to put forward to support their covenant; • The results of any covenant review carried out by the Fund Actuary or a covenant specialist; • The exiting employer’s accounts; • The potential impact on the other employers in the Fund; and • The opinion of the Fund Actuary. The administering authority is not obliged to accept an exiting employer’s request for a DDA. For example, in the following circumstances the administering authority may consider a DDA not to be appropriate: • the exiting employer could reasonably be expected to settle their exit payment in a single amount; • it is known or likely that another active member will come into employment in the three years following the cessation date (in these cases a suspension notice would be considered more appropriate than a DDA); or • the administering authority is concerned that where a DDA is entered, that the employer could not afford the impact of any negative experience which would result in an increase in the required secondary rate of contributions and an increase in the employer’s overall deficit (in these cases a debt spreading agreement would be considered more appropriate as the payments are fixed throughout the term of the agreement). Once all information has been considered the administering authority will consult with the exiting employer as required under the Regulations. If the administering authority does not wish to enter into a DDA they will explain to the exiting employer their reasoning and any alternatives (e.g. a debt spreading agreement, suspension notice or indee...