Trust account monies do not reduce pension scheme claim
A claim in the administration in relation to a ‘section 75 debt’ calculated under the Pensions Act 1995 was not to be reduced by a subsequent payment of £2m to the scheme despite the calculation being made prior to that payment.
Kaupthing Singer & Friedlander Ltd (KSF) went into administration. BESTrustees plc were trustees of KSF’s pension scheme, which had a large deficit. The scheme actuary certified the deficit — a sum known as the section 75 debt — at £74.65m. Afterwards the scheme was paid a sum of £2m from a trust account set up by KSF shortly before the start of the administration proceedings. The administrators rejected the scheme’s proof of debt for £74.65m, arguing it should be reduced to take into account the £2m receipt.
The court found that as at the date of KSF’s administration, the actuary had attributed a nil value to the claim in relation to the trust account because of litigation risks. That valuation had not been the subject of any challenge. The court further held the scheme would not be unjustly enriched. The administrator’s rejection of the scheme’s proof of debt was unjustified…
If you are registered and logged in to the site, click on the link below to read the rest of the Taylor Wessing briefing. If not, please register or sign in with your details below.
News from Taylor Wessing
News from The Lawyer
Briefings from Taylor Wessing
Insolvency proceedings were opened in respect of the assets of a German resident; the liquidator then sought to set aside a transaction that had been entered into with a resident of Switzerland.
As of 1 October 2012, transfers of majority shares in a private limited liability company in Slovakia have become more complicated.
Analysis from The Lawyer
The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world
Financial disputes are starting to dominate the English courts as the long-awaited fallout from the downturn finally comes to town