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.
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 Taylor Wessing
News from The Lawyer
Briefings from Taylor Wessing
For the tax year from 6 April 2014, the standard lifetime allowance has reduced from £1.5m to £1.25m.
One of the areas highlighted last year by the Regulator was the regulation of workplace DC pension schemes.
Analysis from The Lawyer
As the equity capital markets rocketed back into favour and global M&A saw at least a partial return to form, there have been some rich pickings for The Lawyer’s Corporate Team of the Year award shortlisted firms in 2014.
The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world