70. The solicitors reported that the only further action open to the Trustee
to prevent the use of the surplus as proposed would have been to refuse to agree
to the introduction of the M Plan. The solicitors said that particular
consideration had been given to this in the light of the proposed use of the
surplus to reduce employers' contributions to this new section. However, given
the `balance of powers' under the Scheme between the Respondents it was noted
that it was open to the Principal Employer to use the `surplus' to reduce
employer contributions in any event. It had therefore remained
open to the Trustee to agree to the introduction of the M Plan. Three of the
complainants submit that refusing to agree to the introduction of the M Plan was
not,
as the solicitors advised, the only further action open to the Trustee. They
submit that
"it was only necessary to refuse to agree to transfers." They also submit that
it was
only open to the Trustees to agree to the introduction of the M Plan if that was
in the
interests of the members.
Here is the "Big Mistake",
asserting: "the only further action open to the Trustee to prevent the use of
the surplus as proposed would have been to refuse to agree to the introduction
of the M Plan." In retrospect it must be clear that allowing the M-Plan
and not allowing the transfers of C-Plan monies to it was a viable option.
It is not clear why the solicitors thought otherwise.