Alitalia-Linee Aeree Italiane SPA v Rotunno & Ors

Alitalia-Linee Aeree Italiane SPA v Rotunno & Ors

Rule 9.1 does not require the Trustees to determine the rate of employer contributions by reference to the cost of securing benefits on a buy-out basis. The funding objective is to safeguard or protect members' benefits by adopting the funding method best suited to the scheme's circumstances, as determined by the Trustees on actuarial advice and after consultation with the employer. No particular method is prescribed, and flexibility is intended.

Parties
Claimant: Alitalia-Linee Aeree Italiane SPA; Defendant: Filippo Rotunno; Defendant: Ian Houston; Defendant: Andrew Pape; Defendant: BES Trustees PLC; Defendant: Pietro Rosamilia
Jurisdiction
England and Wales
Judgment Date
08 February 2008
Procedural Posture
Civil / Judgment
Outcome
Declaration granted in favour of Alitalia on construction of Rule 9.1; Trustees entitled to indemnity from Alitalia for costs.
Legal Topics
Construction of Pension Scheme Rules, Employer Contribution Obligations, Trustee Indemnity
Trusts Pensions Contract Construction of Pension Scheme Rules Employer Contribution Obligations Trustee Indemnity

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Parties

Alitalia-Linee Aeree Italiane SPA

Claimant

Filippo Rotunno

Defendant

Ian Houston

Defendant

Andrew Pape

Defendant

BES Trustees PLC

Defendant

Pietro Rosamilia

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Proper construction of Rule 9.1 of the 1997 Rules regarding employer contributions
  2. 2 Whether Rule 9.1 requires funding on a buy-out basis
  3. 3 Trustees' entitlement to indemnity for costs under clause 10.2

Ratio Decidendi

Rule 9.1 does not require the Trustees to determine the rate of employer contributions by reference to the cost of securing benefits on a buy-out basis. The funding objective is to safeguard or protect members' benefits by adopting the funding method best suited to the scheme's circumstances, as determined by the Trustees on actuarial advice and after consultation with the employer. No particular method is prescribed, and flexibility is intended.

Court Disposition

Declaration granted in favour of Alitalia on construction of Rule 9.1; Trustees entitled to indemnity from Alitalia for costs.

Orders

  • Rule 9.1 does not require funding on a buy-out basis; Trustees to determine funding method as appropriate.
  • Trustees entitled to indemnity from Alitalia for costs of proceedings under clause 10.2.