how we helped our clients

Here are some case studies that illustrate the best examples of what we have achieved for our clients:

Final Salary Scheme

Employer A sponsored a final salary pension scheme with a substantial deficit. To manage costs for the future it was decided to cease accrual on a final salary basis and switch to Career Average Revalued Earnings (CARE) for future service. The trustees sought legal advice on the appropriateness of the changes proposed by the employer, whether they were permitted by the scheme rules and on the employer’s proposed change process. Further advice was then required to redraft and update the scheme rules.
In a similar matter, we advised a company on the potential contractual issues arising from pension scheme change, the options available under the pension scheme rules, how to approach their discussions with the trustees and on the communication and consultation requirements for employees.

Pension Scheme Trustees

These trustees were responsible for a pension scheme which was in surplus and in the process of being wound up.
They identified that previous trustees had invested significant sums in current accounts which bore no interest – an obvious breach of their duty to invest the funds on a business-like basis. Notwithstanding that the scheme was already in surplus, we advised the trustees that they could recover the loss caused by the previous trustees’ neglect via legal proceedings. They were initially advised by Counsel in very cautious terms, but ultimately accepted Clarke Willmott’s advice and, as a result, we were able to add a significant sum of money to the funds for distribution to the scheme members.

Self Administered Pension Scheme (SSAS)

Company L set up a small self-administered pension scheme (SSAS) on the advice of its accountant. The pension funds were invested, on the accountant’s advice, in some life assurance policies which included very high charging rates, such that further contributions would have been necessary simply for the fund to stand still. There was significant negative growth as the charging rates were much more than the reasonable rate of growth to be expected from prudent investments. It took legal proceedings to persuade the accountants’ insurers to make a satisfactory payment of redress to the company.

Public Sector

We have considerable experience of advising public sector employers on their pension obligations, principally under the Local Government Pension Scheme, the Teachers’ Pension Scheme, the Principal Civil Service Pension Scheme and the National Health Service scheme. Recent examples include:

• Advice on public sector transfer issues including the “Fair Deal” implications
• LGPS related advice including admission agreements
• Advice on the compensation and pension implications of proposed redundancies and early retirements.