NBPF Pension Trustees Ltd. v Warnock-Smith & Anor [2008] EWHC 455 (Ch) (14 March 2008)

NBPF Pension Trustees Ltd. v Warnock-Smith & Anor [2008] EWHC 455 (Ch) (14 March 2008)

Trustees' proposals for distribution of reserves, exclusion of unknown/untraced/refusing beneficiaries, and purchase of run-off insurance are lawful exercises of discretion and justified under scheme rules and section 57(1) Trustee Act 1925, except insurance against claims from excluded unknown beneficiaries, which does not benefit the trust as a whole and is not sanctioned.

Citation
[2008] EWHC 455 (Ch)
Parties
Claimant: NBPF Pension Trustees Limited; Defendant: Michael Warnock-Smith; Defendant: Geoffrey James Paddock; Claimant: Bus Employees Pension Trustees Limited; Defendant: Francis Wheeler; Defendant: Raymond Park
Jurisdiction
England and Wales
Judgment Date
14 March 2008
Procedural Posture
Trustee Application for Court Sanction / Final Hearing on Distribution and Insurance Approval
Outcome
Application granted in part
Legal Topics
Trustee Discretion, Distribution of Pension Surplus, Insurance for Trustees, Beneficiary Exclusion, Section 57 Trustee Act 1925
Trusts Pensions Equity Trustee Discretion Distribution of Pension Surplus Insurance for Trustees Beneficiary Exclusion Section 57 Trustee Act 1925

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Parties

NBPF Pension Trustees Limited

Claimant

Michael Warnock-Smith

Defendant

Geoffrey James Paddock

Defendant

Bus Employees Pension Trustees Limited

Claimant

Francis Wheeler

Defendant

Raymond Park

Defendant

Procedural Posture

Trustee Application for Court Sanction / Final Hearing on Distribution and Insurance Approval

Legal Issues

  1. 1 Whether trustees' proposed distributions of pension scheme reserves are lawful exercises of discretion
  2. 2 Whether trustees have power to make taxable payments
  3. 3 Whether trustees can exclude unknown and untraced beneficiaries from surplus distribution

Ratio Decidendi

Trustees' proposals for distribution of reserves, exclusion of unknown/untraced/refusing beneficiaries, and purchase of run-off insurance are lawful exercises of discretion and justified under scheme rules and section 57(1) Trustee Act 1925, except insurance against claims from excluded unknown beneficiaries, which does not benefit the trust as a whole and is not sanctioned.

Court Disposition

Application granted in part

Orders

  • Sanction for trustees' proposed distributions of reserves in both schemes
  • Approval for exclusion of unknown, untraced, and refusing beneficiaries from surplus distribution