Merchant Navy Ratings Pension Fund Trustees Ltd v Stena Line Ltd & Ors

Merchant Navy Ratings Pension Fund Trustees Ltd v Stena Line Ltd & Ors

The trustee's proposed exercise of the amendment power to introduce the New Regime, making all participating employers liable for deficit contributions and giving credit for past contributions, is within the scope of the power and a proper exercise of discretion. The trustee acted for proper purposes, considered all relevant factors, relied on appropriate professional advice, and did not act irrationally or for an improper purpose. The New Regime is not retrospective or a re-writing of history. The scheme is 'frozen' for section 75 purposes, and C2 Employers cannot withdraw without meeting the withdrawal conditions. The court approves the New Regime and the supporting amendments.

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 (trustee Application for Court Approval) / Judgment After Full Hearing
Outcome
Court approves the trustee's proposed amendments and the New Regime; all issues determined in favour of the trustee.
Legal Topics
Trustee Powers, Pension Scheme Amendments, Employer Contributions, Section 75 Pensions Act 1995, Scheme Deficit Repair, Fiduciary Duties, Proper Purpose Doctrine, Retrospective Amendments, Withdrawal of Employers, Scheme Funding
Trusts Pensions Equity Company Law Trustee Powers Pension Scheme Amendments Employer Contributions Section 75 Pensions Act 1995 +6 more

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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 (trustee Application for Court Approval) / Judgment After Full Hearing

Legal Issues

  1. 1 Whether the trustee has power to amend the pension scheme rules to introduce a new deficit contribution regime (the 'New Regime') making all participating employers liable for deficit contributions, including historic employers;
  2. 2 Whether the exercise of the amendment power for this purpose is a proper exercise of discretion and within the scope of the power;
  3. 3 Whether the New Regime can give credit for past contributions (re-apportionment) and whether this is retrospective or a re-writing of history;

Ratio Decidendi

The trustee's proposed exercise of the amendment power to introduce the New Regime, making all participating employers liable for deficit contributions and giving credit for past contributions, is within the scope of the power and a proper exercise of discretion. The trustee acted for proper purposes, considered all relevant factors, relied on appropriate professional advice, and did not act irrationally or for an improper purpose. The New Regime is not retrospective or a re-writing of history. The scheme is 'frozen' for section 75 purposes, and C2 Employers cannot withdraw without meeting the withdrawal conditions. The court approves the New Regime and the supporting amendments.

Court Disposition

Court approves the trustee's proposed amendments and the New Regime; all issues determined in favour of the trustee.

Orders

  • The trustee is authorised to amend the scheme rules as set out in the schedule to the judgment to implement the New Regime.
  • The New Regime, including augmentation, re-apportionment, orphan loading, joint and several liability, synthetic section 75 debts, and ancillary features, is approved.