A pragmatic approach to dispute
We were appointed to a Scheme following a breakdown in relationship with the existing professional trustee over a historic error in the Scheme’s rules.
Essentially, as the result of a clear error, the definition of pensionable salary had been changed providing members with massively greater benefits than had been intended.
The previous trustee had already spent tens of thousands of pounds considering how best to approach the courts to seek guidance on the position.
We immediately consulted with a pragmatic expert litigation lawyer who was able to advise us that we should simply amend the Rules going forward and operate the Scheme as though the error had never occurred. At our sponsor’s request we had this approach confirmed by counsel for a relatively nominal cost.
We also pursued the actuarial consultancy firm that had actually drafted the incorrect rule change and recovered the modest costs spent in coming to a conclusion.
We later discovered that other schemes had spent over 30 times the amount resolving similar issues.