Kemble & Anor v Hicks & Ors (No 2) [1999] EWHC 301 (Ch) (17 June 1999)

Kemble & Anor v Hicks & Ors (No 2) [1999] EWHC 301 (Ch) (17 June 1999)

Trustees have no jurisdiction to use scheme assets to purchase indemnity insurance solely for their own benefit absent express provision in the definitive deed; employer contributions to money purchase scheme were improperly paid from final salary scheme surplus; trustees cannot use final salary scheme assets to restore cancelled units for money purchase scheme members.

Citation
[1999] EWHC 301 (Ch)
Parties
Claimant: Investment Capital Pension Trustees Limited; Claimant: James Kemble; Respondent: Mrs Hicks
Jurisdiction
England and Wales
Judgment Date
17 June 1999
Procedural Posture
Originating Summons / Judgment
Outcome
Trustees' application refused; declarations to reflect conclusions.
Legal Topics
Trustee Indemnity, Scheme Winding Up, Money Purchase Scheme, Final Salary Scheme, Trustee Insurance, Scheme Surplus and Deficit
Trusts Pensions Insolvency Trustee Indemnity Scheme Winding Up Money Purchase Scheme Final Salary Scheme Trustee Insurance +1 more

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Parties

Investment Capital Pension Trustees Limited

Claimant

James Kemble

Claimant

Mrs Hicks

Respondent

Procedural Posture

Originating Summons / Judgment

Legal Issues

  1. 1 Whether trustees can use scheme assets to purchase indemnity insurance for their own benefit
  2. 2 Whether employer contributions to the money purchase scheme were properly paid from the final salary scheme surplus
  3. 3 Whether trustees can use final salary scheme assets to restore cancelled units in the money purchase scheme

Ratio Decidendi

Trustees have no jurisdiction to use scheme assets to purchase indemnity insurance solely for their own benefit absent express provision in the definitive deed; employer contributions to money purchase scheme were improperly paid from final salary scheme surplus; trustees cannot use final salary scheme assets to restore cancelled units for money purchase scheme members.

Court Disposition

Trustees' application refused; declarations to reflect conclusions.

Orders

  • No authority for trustees to use scheme assets for indemnity insurance solely for their own benefit.
  • Employer contributions to money purchase scheme not properly paid from final salary scheme surplus.