Pensions update: Omega Pharma decision
On 25 July 2014, the Irish Commercial Court handed down judgment in the case of Holloway and Others v Damianus BV and Others — otherwise known as the Omega Pharma case. The court directed the employers of the Omega Pharma scheme to pay €2.23m (£1.77m) to the trustees as a result of the employers’ failure to meet a contribution demand made by the trustees upon the winding-up of the scheme.
Briefly, in October 2012, the principal employer gave three months’ notice of its intention to terminate contributions to the Omega Pharma pension scheme. During the notice period, the trustees sought to engage with the three scheme employers on the scheme’s deficit but no such engagement took place. The trustees therefore sought legal and actuarial advice and, notwithstanding the fact that there was no deficit on the funding standard basis (the MFS) prescribed under the Pensions Act 1990 (as amended), made a contribution demand in the sum of €3m. This sum was judged by the scheme actuary to be a fair assessment of the scheme’s deficit and was calculated using a mixture of annuity costs and transfer values, rather than a straightforward annuity buy-out basis, which would have resulted in a higher level of deficit (circa €5.8m)…
Click on the link below to read the rest of the LK Shields Solicitors briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from LK Shields Solicitors
Briefings from LK Shields Solicitors
It’s the largest overhaul of company law in half a century and is intended to make running a business in Ireland easier
Draft legislation that would have increased the red tape burden may be overhauled.