Older News
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Update on High Court ill health benefits case – 18 October 2021
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Settlement approval hearing postponed to November 2021
As part of the normal course of running the Fund, the Trustee has as a matter of good governance begun an exercise to ensure that the benefits which are being paid in practice are in line with both the Fund’s current and historic trust deed and rules, as well as legislation. Bearing in mind the many years over which pension schemes operate, and the changes in law and practice which are introduced during that time span, this type of exercise is usual. It often reveals aspects of management and administration that are not aligned with the legal requirements. These “mis-alignments” are often fairly minor.
The Trustee is still in the early stages of the exercise, but so far it has revealed two areas where a mis-alignment results in potentially very material additional liabilities for the Fund. Much greater urgent investigation is needed before the full impact of these discoveries is understood. In the interim, the Trustee determined that it was right to explain the issue to employers, who could potentially need to pay significant additional contributions as a result.
The Trustee and its advisers are investigating the issues urgently and liaising with the representative beneficiaries’ and employers’ advisers.
This development has impacted the process to agree the ill health settlement. The hearing to consider approval of the ill health settlement was due to take place on 13 October 2021. The Court has agreed to adjourn the hearing to the week of 22 November 2021 , so that the representative beneficiaries’ and employers’ advisers can assess what effect, if any, this new issue may have on the settlement and the approval application.
If any member wishes to watch the hearing remotely, please could they contact Mercer, who will then pass on their details and their request to the Court.
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Statement on recent news articles
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The Trustee is aware of the article that appeared in the Times on Monday 31st May. The Trustee wishes to assure members that their benefits are secure. The Chair of Trustees has released the following statement:
“The overriding concern of the Trustee is the ability to pay members benefits in full and on time. As a multi-employer, last man standing, pension scheme, we’re always alive to the possibility of a participating employer struggling to pay contributions. If and when that happens it is a cause of concern as the knock-on effect is that other employers are required to meet the “default” contributions. The Trustee is very alive to the need to treat all participating employers fairly and equally.”
The Trustee would like to re-assure all members that their benefits remain secure and will continue to be paid in full and on time.
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Trustee Board update
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The RMT and Employers Group have recently agreed that the current Trustee Board will continue in its current form until the end of July. This is so it can complete the Fund’s valuation and progress its work around resolving the ill-health court case at a critical time.
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Merchant Navy Ratings Pension Fund - Regulatory intervention report
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On 16 December 2020, the Pensions Regulator published its Regulatory Intervention Report in regard to the MNRPF. This document reports on its findings on the governance of the Fund and relates directly to matters highlighted in the communication issued to all members by John Oldland in March 2020 and the update provided in the recent Newsletter to members. Click on the links to see copies of these documents on this website.
Since the Determination Panel hearing on 27 February 2020 the Trustee Board has been working effectively together, in the interests of the MNRPF and its members.
The announcement from the Pensions Regulator confirms the outcome of its investigation and closely aligns with what John Oldland mentioned in his letter.
You can view the Pension Regulators report at: https://www.thepensionsregulator.gov.uk/en/document-library/enforcement-activity/regulatory-intervention-reports/merchant-navy-ratings-pension-fund-regulatory-intervention-report
The Trustee would like to stress that, throughout the difficulties that led to the Determinations Panel hearing and since, the day-to-day affairs of the Fund (e.g. payment of Benefits, collection and investment of contributions, triennial valuation and annual funding update, annual audit, etc.) have continued to be effectively managed by the Trustee, with the assistance of its advisers. So hopefully members have seen little or no change in the routine operation of the MNRPF.
However, we understand that members may have some questions and hope that the following provides you with reassurance to any concerns you may have.
1. Is my pension at risk?
No your pension is not at risk. The MNRPF is well funded and as previously mentioned the day-to-day affairs of the Fund (e.g. payment of Benefits, collection and investment of contributions, triennial valuation and annual funding update, annual audit, etc.) have continued to be effectively managed by the Trustee, with the assistance of its advisers.
2. Do I need to do anything?
No there is nothing for you to do.
3. Can I transfer out?
If you are a deferred member and have not yet retired then transfers out of the Scheme are allowed. For any member considering this option we would very strongly encourage you to take independent regulated financial advice to see if this is an appropriate course of action for you.
4. Are the issues all dealt with?
As outlined in the letter from John Oldland in the Summary Annual Report good progress has been made.
Further appointments are expected to be made to the Trustee Board in the new year. We expect this to happen Q2 2021.
5. Who is paying the £1m of adviser costs? Has this come out of my pension?
No. The costs of running the Fund do not impact the level or amount of your pension.
6. How secure is the Fund?
The Fund is in a good financial position with a successful regime of getting financial contributions from the sponsoring employers. The three-yearly formal valuation process is currently underway and will value the fund as at 31 March 2020 but this process takes many months to complete. The Trustee will write to you again once this process has completed.
7. Who is responsible for the governance issues?
The Trustee Board as a whole is responsible for the governance of the Fund.
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Ill Health Retirement – Further High Court Update – 8 October 2021
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As members have been informed, a hearing will take place in the High Court in the week of 11 October 2021 in relation to settlement of a case about the ill-health early retirement (“IHER”) benefits paid by the Fund.
As members were told by recent letter, the hearing will be held remotely before Mrs Justice Bacon DBE. This is over video-conference and means that no-one will attend the hearing in person. Those members who wished to watch the hearing remotely were invited to contact Mercer and those that did have been provided with arrangements to do so.
The Court has now confirmed that the remote hearing will take place on 13 October 2021. We will write to members again once the outcome of the Court hearing is known and some post-hearing steps have taken place. This is likely to be in November 2021.
As noted previously, the only thing that you need to do now, if you are not in receipt of an IHER pension but you think you might be affected, is keep safe any relevant records that you have.
The Trustee strongly recommends that, where possible, if you were in service on 8 October 1993 (even if you were in between ships on that date), you retain any medical and employment history and/or details about your past health. This is particularly around the time of leaving Merchant Navy service as a rating. If you are incapable of doing so or are the survivor of a member who was in service on 8 October 1993, the Trustee recommends that the family/survivors/estates of the member retain any relevant details and/or records.
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Ill Health Retirement – Further High Court Update – 31 August 2021
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Please note that an earlier version of this article contained the incorrect helpline number. It has now been updated. If you have any queries about the proposed settlement, please call 0800 197 6923.
As members may recall, a hearing is due take place in the High Court over two days from (or shortly after) 11 October 2021. This is in relation to settlement of a case about the ill-health early retirement (“IHER”) benefits paid by the Fund.
The issues in the case relate to whether IHER benefits paid by the Fund from 1985 onwards were validly introduced and the legal effect of various subsequent changes to those benefits. In particular, from 1991, certain IHER benefits were reduced or suspended, and from 8 October 1993, no further IHER pensions were provided to members leaving service after that date.
The Trustee is pleased to report that the parties have now agreed the detailed settlement terms. However, they remain subject to Court approval. They will be considered by the Judge for approval at the hearing in October, and the Judge will only approve the settlement if it is considered to be in the overall interests of both the members and the employers.
Further information about the proposed settlement is set out in a letter which is in the process of being sent to all members. A copy of that letter is available by clicking here.
The key thing that you need to do now, if you are not in receipt of an IHER pension but think you might be affected, is keep safe any relevant records that you have (see section 10: “Your records” in the letter).
In summary, the Trustee strongly recommends that, where possible, if you were in service on 8 October 1993 (even if you were in between ships on that date), you retain any medical and employment history and/or details about your past health. This is particularly around the time of leaving Merchant Navy service as a rating. If you are incapable of doing so or are the survivor of a member who was in service on 8 October 1993, the Trustee recommends that the family/survivors/estates of the member retain any relevant details and/or records.
We will write to members again once the outcome of the Court hearing is known and some post-hearing steps have taken place. This will probably be in November 2021.
There will also be updates posted from time to time on the members’ website. In particular, when we have further details about the arrangements for the hearing, we will put an update on the members’ website. This will probably be in early October.
If you would like more information about the proposed settlement, you can call our trained helpline agents on the freephone helpline below. This is a dedicated phone line for this case.
Helpline freephone number: 0800 197 6923
The helpline agents are only able to explain the proposed settlement in general terms as described in the letter and enclosed Summary. They are not able to provide any views or advice about the expected outcome in your particular case e.g. whether you will qualify and, if so, what compensation you might receive.
You can also write to us or email us at the address below. Again, we are not able to provide any views or advice about the expected outcome in your particular case.
Our address for enquiries by post is:
Merchant Navy Ratings Pension Fund
c/o Mercer Employee Benefits
Post Handling Centre U
St James’s Tower
7 Charlotte Street
Manchester
M1 4DZOur email address for enquiries is: mnrpfmailings@mercer.com
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Ill Health Retirement – Further High Court Update 23 June 2021
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As members may recall, a hearing was due take place in the High Court over two days from (or shortly after) 5 July 2021. This was in relation to settlement of a case about the ill-health early retirement (“IHER”) benefits paid by the Fund.
The issues in the case relate to whether IHER benefits paid by the Fund from 1985 onwards were validly introduced and the legal effect of various subsequent changes to those benefits. In particular, from 1991, certain IHER benefits were reduced or suspended, and from 8 October 1993, no further IHER pensions were provided to members leaving service after that date.
Whilst the parties have made considerable progress in the confidential settlement discussions, the hearing listed for July needs to be re-scheduled. This is primarily to allow more time for discussions to take place with HMRC over the tax treatment of any payments made under the settlement.
The Judge has therefore agreed to re-list the hearing, and it will now take place over two days from (or shortly after) 11 October 2021. As before, the intention is that if settlement terms are agreed, they will be considered by the Judge for approval at that hearing. The Judge will only approve the settlement if it is considered to be in the interests of both the members and the employers.
Further information about the proposed settlement will be made available to members before the hearing in October 2021.
The Trustee strongly recommends that, where possible, members who (a) previously retired for reasons of ill health on an IHER pension, or (b) who left service on or after 8 October 1993 without taking IHER, retain any medical and employment history and/or knowledge about their past health.
The Trustee also recommends that, where possible, a members family/dependants also retain knowledge of, and/or records related to, a members employment and medical history in the event of a members incapacity or death. This is relevant for all members with service before 8 October 1993 who either (a) have or had IHER benefits or (b) left service through ill-health after that date without taking IHER (at the time of leaving service). This could be relevant whether or not the case settles.
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Ill Health Retirement – Further High Court Update March 2021
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As members will be aware from a letter sent to them in November 2020, a hearing was due take place in the High Court over two days from (or shortly after) 22 March 2021. This was in relation to the ill-health early retirement (“IHER”) benefits paid by the Fund.
The issues in the case relate to whether IHER benefits paid by the Fund from 1985 onwards were validly introduced and the legal effect of various subsequent changes to those benefits. In particular, from 1991, certain IHER benefits were reduced or suspended, and from 8 October 1993, no further IHER pensions were provided to members leaving service after that date.
Confidential settlement discussions are still ongoing, and it has become apparent that more time will be required to prepare and hopefully agree detailed settlement terms in this complex matter. The Judge has therefore agreed to re-list the hearing, and it will now take place over two days from (or shortly after) 5 July 2021. As before, the intention is that if settlement terms are agreed, they will be considered by the Judge for approval at that hearing. The Judge would only approve the settlement if he considers that it is the interests of both the members and the employers to do so.
Further information about the proposed settlement will be made available to members and employers in due course.
The Trustee strongly recommends that, where possible, members who (a) previously retired on an IHER pension, or (b) who left service on or after 8 October 1993 without taking IHER, retain any medical and employment history and/or knowledge about their past health.
The Trustee also recommends that, where possible, a member's family/dependants also retain knowledge of, and/or records related to, a member's employment and medical history in the event of a member's incapacity or death. This is relevant for all members with service before 8 October 1993 who either (a) have or had IHER benefits or (b) left service through ill-health after that date without taking IHER (at the time of leaving service). This could be relevant whether or not the case settles.
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How are you?
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Join the other MNRPF members (and their families and friends) who are already benefiting from our free Wellbeing Webinars and register now to enhance your wellbeing.
In these challenging times it’s even more important to consider your health and wellbeing - to find out how, register for our series of free Wellbeing Webinars taking place every week on Wednesdays at 10am.
On average, 100% of members who have joined so far, have rated the webinars as very helpful or helpful.
In the last webinar 88% of viewers rated the speaker as excellent.
It’s not too late to register! These fun and informative webinars are continuing until 31st March 2021. For details of the topics, please click here
Just click on the link below to register.
Please feel free to invite non-members, who you think would benefit – all they need to do is click the link below to register.
Or if you prefer to watch the webinars in your own time, recordings of all the webinars taken place so far can be found by clicking on the link below.
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Beneficiary Trustee Director Nominations
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Further to the Trustee’s recent request for members to volunteer for the role of Beneficiary Trustee Director, the RMT has now confirmed their nominations for Beneficiary Trustee Directors. Further details can be found on the RMT website by clicking here.
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Our free webinar programme
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It’s interesting that we live in a world where asking ‘how are you doing?’ has become a bit of a formality. But the world has changed, and never have we put so much importance into the question ‘How are you?’ We hope this finds you safe, well and coping.
Over 13 weeks starting on 6 January 2021, the MNRPF are teaming up with the Wellbeing People to present a free 60 minute webinar every week, covering a wide range of wellbeing topics. These essential live wellbeing webinars are designed to support your mental, physical and emotional wellbeing particularly during these unprecedented times of social distancing and, in all too many cases, self-isolation.
Click here to find out more about the webinars and to register.
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Ill Health Retirement – High Court Update
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As members will be aware from the recent Summary Annual Report 2020 (also known as the Member Newsletter), a trial was due to be heard in the High Court over 8 days from (or shortly after) 9 November 2020 in relation to the ill-health early retirement (“IHER”) benefits paid by the Fund.
The issues in the case relate to whether IHER benefits paid by the Fund from 1985 onwards were validly introduced and the legal effect of various subsequent changes to those benefits. In particular, from 1991, certain IHER benefits were reduced or suspended, and from 8 October 1993, no further IHER pensions were provided to members leaving service after that date.
However, as a result of ongoing confidential settlement discussions, the Judge agreed to adjourn the trial and put the case on hold for a three month period. This is to allow the parties the necessary time to prepare and hopefully agree detailed settlement terms in this complex matter. The intention is that if settlement terms are agreed, they will be considered for approval by the Judge at a further hearing over two days from (or shortly after) 22 March 2021. The Judge would only approve the settlement if he considers that it is in the interests of the members and employers to do so.
Further information about the proposed settlement will be made available to members and employers in due course.
The Trustee strongly recommends that, where possible, members retain any medical and employment history and/or knowledge about their past health. The Trustee also recommends that where possible, a member's family/dependants also retain knowledge of, and/or records related to, a member's employment and medical history in the event of a member's incapacity or death. This is relevant for all members with service before 8 October 1993 who either have or had IHER benefits or left service through ill-health after that date without taking IHER (at the time of leaving service). This could be relevant whether or not the case settles.
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We are looking for members to become Beneficiary Trustee Directors
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The Trustee is currently seeking to fill two vacancies on the Pension Fund Trustee Board. A communication pack giving full details of the role and how to be nominated as a potential Trustee Director was posted to all members for whom the Trustee holds addresses on 4 September. All nominations need to be received by midnight on 30 October 2020. If you have not received your information pack by 11 September please contact the Fund administrator Mercer at Mhttps://contact.mercer.com/green and they will arrange for one to be sent to you.
Please remember to advise Mercer if you ever change address so that the Trustee can keep in touch with you. Mercer will also keep a record of your e-mail address if you provide it to them.
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Appointment of new trustee board and new independent Chair of the Trustee
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As noted in the Trustee Report and Accounts (“Report and Accounts”) for the year ended 31 March 2019, published on the member website and highlighted in the letter sent to members in December 2019, the Pensions Regulator (the “Regulator”) has been undertaking an investigation into the governance of the Fund.
You can download the full letter by clicking here.
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Coronavirus update
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The Trustee is also mindful of the Coronavirus (Covid 19) and the concerns that members might have about the impact this might have on their benefits. The Trustee is monitoring the impact of this situation with its advisers and we will report further on this in later communications.
In the meantime, should you have any queries regarding your benefits please contact Mercer at https://contact.mercer.com/green or on the phone on 01372 200385
John Oldland
Trustee Director -
Review of the governance structure of the Trustee Board and resignation of Chair
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December 2019
Merchant Navy Ratings Pension Fund (“the Fund”)
Following the publication of the Trustee Report and Accounts (“Report and Accounts”) for the year ended 31 March 2019 on the member website, we are writing to ensure that all members are aware of the information contained in the Report and Accounts on page 9 outlining the Pensions Regulator’s (the “Regulator’s”) investigation into the governance of the Fund and to provide you with some further information.
In late 2017, the Trustee initiated an independent review of the governance of the Fund. Following an approach from the Trustee, the Regulator became involved and commenced its own investigation in November 2018.
The Regulator’s process is ongoing and the Trustee is engaging with the Nominating Bodies (the RMT and the Employers Group (MNP EG)) on the governance issues which have been identified.
During this time, the Board is continuing to progress business as usual activities.
We would like to reassure you that this has no impact on the security of your benefits or current impact on the day-to-day operation of the Fund as the Regulator’s involvement relates purely to the governance of the Trustee Board. As you know, the Fund has a robust sub-committee structure which deals with all day-to-day activities and enables the Trustee to focus on strategic matters and certain key decisions.
All day-to-day operations are therefore ‘business-as-usual’ and the Trustee will continue to manage the Fund to achieve its long-term strategy. The Trustee is continuing to work with Participating Employers and to collect contributions in line with the implementation methodology, established in the 2015 Court Case.
As highlighted in the Popular Reports which are issued annually to members, the funding level of the Fund has increased from 67% as at 31 March 2014 to 88% as at 31 March 2019, primarily as a result of the Trustee collecting £365 million in contributions from Participating Employers towards the deficits shown in the 2014 and 2017 Actuarial Valuations. (Please refer to the 2019 Popular Report for further information on the financial health of the Fund.)
Following the resignation of the Independent Trustee John Preston the Board expects to conduct a process in conjunction with the Regulator to appoint a new independent Chair of the Trustee, but in the meantime, the Trustee Board has an appropriate framework to operate on a day-to-day basis.
The ongoing investigation into the governance of the Fund by the Regulator prevents us from providing further information on this matter at this time. However, we will write again at the earliest opportunity to provide you with more information. Regardless where we are with the Regulator’s process, we will provide you with an update before the end of March 2020.
In the meantime, should you have any queries regarding your benefits please contact JLT via email at mnrpf@jltgroup.com or on the phone on 0345 521 0049.
Yours sincerely
Edward Jones
Trustee Directorand Peter Hall
Trustee DirectorOn behalf of the Merchant Navy Ratings Pension Fund Trustees Limited
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Ill health early retirement benefits (“IHER benefits”)
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We updated you last year of the legal uncertainties relating to the entitlement of certain members to enhanced ill health early retirement benefits (“IHER benefits”) from the Fund. The Trustee has kept members updated on the actions they are taking during the course of the year. As you are aware the Trustee is applying to the High Court for directions over these issues.
As mentioned previously, the Trustee has a neutral position in this case. Therefore, the Trustee has appointed representatives to act in the interests of both the members and the employers and each representative has their own legal team to support them. We wrote on 29 March 2019 to all members to let them know the names of their representatives and their legal team. Both the members’ and employers’ representatives are building their own case on the questions before the Court about IHER benefits and following a detailed process the Court will decide what IHER benefits members might be entitled to.
The Court Case will be heard in November 2020 which is the earliest possible date. Judgment is expected early in 2021. Once the Trustee has received this judgment, it will be better placed to decide what the next steps should be and whether members are entitled to any extra benefits. Depending on the outcome of the case, a further Court process may be required for this purpose. The case should not result in a reduction to the overall value of the total benefits of any members.
If higher or new enhanced IHER benefits are to be paid, it will create additional liabilities for the Fund (which were not reflected in the last valuation). We have informed Participating Employers of this.
As we said last year, it would be helpful if potentially affected members retained any medical history about past health, if they believe they may be entitled to this benefit. The Court will clarify if different categories of members are affected, but we believe this relates to members who had service before 8 October 1993.
The Trustee will continue to keep you informed as this matter develops.
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Collection of Deficit Contributions
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The Trustee has collected four instalments of deficit contributions from the Participating Employers towards removing the Fund’s 2014 deficit of £354 million. As at March 2019 the Trustee had received £314 million in deficit contributions and other payments towards the 2014 deficit.
The Trustee concluded the 2017 Actuarial Valuation (as at 31 March 2017) in 2018 which showed an additional deficit, in excess of expected receipts towards the 2014 deficit, of £89 million. As at March 2019 the Trustee had received £51 million in deficit contributions and other payments towards the 2017 Additional deficit.