Re: Reply to letter to MP

Posted by Alan Murphy on 21 October 2000 at 19:09:18:

In Reply to: Re: Reply to letter to MP posted by Pete Warren on 21 October 2000 at 12:06:50:

: On the first point could the payment holiday AND the use of the money for the M plan be considered a payment to the employer?
Yes! Because prior to the Trust Deed Amendment (Feb 2000) the employer was required to use ITS money to fund the M Plan. The Trust Deed 1997 states "Each employer shall make ... contributions ....". So in order for this to be true, the C-Plan surplus must have been payed to the employer (if only for a microsecond).

: On the second point the transfer of money is definitely NOT in the interests of members
Which members M-Plan or C-Plan members? (Silly question!)

: And finally, did we receive notice that the rules were being changed?
NO - and Neither that they HAD BEEN "changed".

I cannot find in the various reports sent to me by the Pensions Department over the years
any reference to the fact that the Trust Deeds had been changed. I am still looking.
However in the FULL '1999 Annual Report' (which you FIRST HAVE TO REQUEST from the Pensions Department), there is a 3 line paragraph which says:

"The definitive Trust Deed & Rules dated 24 April 1997, have been amended, firstly, with effect from 15 December 1997 to incorporate the benefit structures of the members transferred from the Data Sciences Pension Scheme and, secondly, on 24 February 2000 to clarify the position regarding contributions."

I think the use of the word "clarify" in this last sentence is the closest we can get to the word "change" - but you would have to be a lawyer to know the difference. Were the Deeds amended to "clarify the position" or were they "changed"? Judge for yourself - see the link below.