The applicants were trustees of a pension scheme who sought directions from the court, wishing to buy annuities for scheme members. The proposal sought to maximise the benefit of the Pension Protection Fund.
Held: It was not a proper exercise of the Trustees’ powers to apply a disproportionately large part of the fund in anticipation of relying on future payments from the Fund. The Fund was designed to compensate for lost funds and operated as a fund of last resort. The proposal fell well outside the range of proper applications of funds even though it was not in breach of any express term of the trust.
Judges:
Henderson J
Citations:
[2009] EWHC 2810 (Ch), Times 18-Nov-2009
Links:
Statutes:
Jurisdiction:
England and Wales
Financial Services, Trusts
Updated: 23 July 2022; Ref: scu.377850