Merchant Navy Ratings Pension Fund Trustees Ltd v Stena Line Ltd & Ors [2015] EWHC 448 (Ch) (25 February 2015)

Merchant Navy Ratings Pension Fund Trustees Ltd v Stena Line Ltd & Ors [2015] EWHC 448 (Ch) (25 February 2015)

The trustee has the power under the scheme's amendment clause to introduce the New Regime making all participating employers liable for deficit contributions, including historic employers, and to give credit for past contributions. The trustee's decision-making process was adequate, relied on appropriate professional advice, and was not vitiated by any conflict of interest or failure to consider relevant matters. The proposed amendment is a proper exercise of the trustee's powers and discretion, and the court approves the amendment.

Citation
[2015] EWHC 448 (Ch)
Parties
Claimant: Merchant Navy Ratings Pension Fund Trustees Limited; First Defendant: Stena Line Limited; Second Defendant: P&O Ferries Limited; Third Defendant: Sealion Shipping Limited; Fourth Defendant: International Marine Transportation Limited; Fifth Defendant: Terence Brown
Jurisdiction
England and Wales
Judgment Date
25 February 2015
Procedural Posture
Part 8 Claim (chancery Division) / Judgment on Application for Approval of Trustee's Proposed Amendment to Pension Scheme Rules
Outcome
Court approves the trustee's proposed amendment to the scheme rules to implement the New Regime.
Legal Topics
Trustee Powers, Pension Scheme Amendments, Deficit Contributions, Section 75 Pensions Act 1995, Exercise of Discretion by Trustees
Pensions Trusts Equity Trustee Powers Pension Scheme Amendments Deficit Contributions Section 75 Pensions Act 1995 Exercise of Discretion by Trustees

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Parties

Merchant Navy Ratings Pension Fund Trustees Limited

Claimant

Stena Line Limited

First Defendant

P&O Ferries Limited

Second Defendant

Sealion Shipping Limited

Third Defendant

International Marine Transportation Limited

Fourth Defendant

Terence Brown

Fifth Defendant

Procedural Posture

Part 8 Claim (chancery Division) / Judgment on Application for Approval of Trustee's Proposed Amendment to Pension Scheme Rules

Legal Issues

  1. 1 Whether the trustee has power to amend the scheme rules to introduce a new deficit contribution regime imposing liability on all participating employers, including historic employers
  2. 2 Whether the proposed amendment is a proper exercise of the trustee's powers and discretion
  3. 3 Whether credit can be given for past contributions (re-apportionment)

Ratio Decidendi

The trustee has the power under the scheme's amendment clause to introduce the New Regime making all participating employers liable for deficit contributions, including historic employers, and to give credit for past contributions. The trustee's decision-making process was adequate, relied on appropriate professional advice, and was not vitiated by any conflict of interest or failure to consider relevant matters. The proposed amendment is a proper exercise of the trustee's powers and discretion, and the court approves the amendment.

Court Disposition

Court approves the trustee's proposed amendment to the scheme rules to implement the New Regime.

Orders

  • Trustee is authorised to amend the scheme rules as set out in the schedule to the judgment.
  • Representation orders made as proposed for efficient conduct of the proceedings.