THORN PENSIONERS ASSOCIATION SAFEGUARDS THEIR FUND

The Thorn & EMI Group Pensioners' Association (TEPA), acting on behalf of the pensioners of Thorn Ltd.(the high street TV and rentals business), has, after a three year battle, prevented £50 million being removed from their pension fund, by the Japanese bank Nomura. The Board of Trustees have informed the fund members that the proposal to make a repayment to the employer, while continuing its contribution holiday, coupled to an increase of 5% in benefits together with increasing the RPI ceiling to 7% (for what that is worth in these times of low inflation), will not be pursued.

The reason given for not proceeding with the proposal was that insufficient funding would remain for the purchase of annuities to fully cover liabilities, should the fund be wound-up.

The reason that had been given for making the proposal, in the first place, was the existence of a surplus in the fund exceeding that allowed by the Inland Revenue's maximum surplus rules. The surplus had been created by much of the fund assets having been transferred from equities to bonds.

The proposal, breaching, as it did, the fund's trust deed and rules, a modification order by the Occupational Regulatory Authority (OPRA) was applied for, and granted, and would have been implemented were it not for the objections by a number of pensioners and TEPA, assisted by solicitors and barristers, engaged on a pro-bono basis.

This is how the matter stands at the moment. TEPA will remain vigilant in case Nomura makes another attempt to extract money from the pension fund. Helped by COPAS, of which it is a member, TEPA urges the Government to abolish the current maximum surplus rules.