UK - The Blagden Pension Scheme saga - which was finally settled after a compromise deal was reached - will not set a precedent over surplus cash entitlements.
Pensions legal experts said the winding up of chemical firm Blagden will not become a test case on pension surplus because it did not see the inside of a court room.
Advising the scheme was Sackers & Partners partner Ian Pittaway who said the case was settled on rules unique to the scheme.
Pittway added: “The Blagden pensions case is unlikely to have wider significance as it was settled on specific trustee rules. The case was won on the special nature of trustee rules.”
The amount awarded – £5.5m – is only just more than half the £10.1m the trustees were seeking but the deal means enough money remains to secure funding and guarantees benefits for scheme members.
Jeremy Spratt, recovery partner at KPMG, who took over the final stages of negotiation once Blagden was wound up, said: “This was a compromise deal and not a court order. It turned on the particular facts of the case and the terms of the trustees.”
The campaign was initially taken up by Blagden scheme trustee chairman John Gillum who said: I am delighted that we have been able to reach a compromise which means that we can now wind-up the scheme with the expectation of members' receiving their promised benefits in full. Legal & General has now been appointed as the insurance company to administer the new pension policies to members of the former Blagden pension scheme.
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