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Scheme contribution rules may survive statutory funding regime, says Court ruling on 'pilots case'

1 July 2010
1 July 2010 –Judgment in the so-called 'pilots case' (PNPF Trust Company Ltd v Taylor) was handed down this week (28 June 2010) from the High Court.  The case concerns the liability of various entities to contribute to the Pilots’ National Pension Fund, an industry-wide scheme for marine pilots.  The scheme was unusual in that many of its members were technically self-employed, but some of the issues raised are of wider relevance to occupational schemes in general.

Richard Evans, a partner in Mayer Brown's Pension group, said:
 “The interesting bit is at the end of the 180 pages.  The judge returns to an idea which he’d floated in the British Vita case:  scheme contribution rules may ‘survive’ the statutory funding regime.  The point could be crucial for schemes where the contribution rules are more trustee-friendly than the SFR.  The employer will think it’s done a deal on contributions under the SFR, but could find that it then receives a demand for more.”

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+44 20 3130 8547

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    Richard Evans
    T +44 20 3130 3606
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