Andrew Simmonds QC, 5 Stone Buildings (taken from Isssue No 11 – April 2000)
THE PROBLEM
Consider the following hypothetical set of facts:
The Millennium Bug plc retirement benefits scheme (`the Scheme`) is an exempt approved final salary scheme. There are 10,000 members comprising 5,000 pensioners, 2,500 deferred pensioners and 2,500 actives. Payment of benefits is administered by Apocalypse Pension Consultants Limited (`Apocalypse`). In July 1999 the sponsoring employer, Millennium Bug plc, goes into insolvent liquidation. This triggers a winding up of the Scheme. In the course of the winding up it emerges that defects in Apocalypse’s computer software have led to final pensionable salaries of pensioners and deferreds being overstated by 100% in all benefit statements and calculations which have been issued and made for the previous ten years. The Scheme is now substantially in deficit.
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The Trust Quarterly Review is published in partnership with STEP, it discusses matters of interest to trustees and executors with a focus on the particular interests of trust corporations in mind
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