On Thursday, the High Court approved a settlement in a case brought by the trustee of the Merchant Navy Ratings Pension Fund about ill-health early retirement, meaning the fund will pay lump-sum arrears and increased pensions to several thousand affected members. 

 

In 2019, the trustees of the fund sought directions on the “provision, revision, and removal of enhanced IHER benefits”, first introduced into the multi-employer fund in 1985. In August last year, the parties entered into a settlement agreement under which the MNRPF would pay compensation to the members who were adversely affected by past decisions over the entitlement to IHER benefits, but new issues were identified and so a revised settlement was agreed and approved by the court, on the basis that it is for the benefit of both members and the employers.  

 

“The trustee welcomes the certainty that this settlement brings for members and employers and that it avoids the need for further time and cost for the case to go to a full trial,” said John Oldland, independent chair of the trustee. 

 

“The trustee has done all it can to facilitate the long settlement process to reach the point where the settlement can now be implemented. The trustee, in conjunction with its advisers, will now be working very hard to ensure payments under the settlement are paid to affected members in the shortest possible timeframe” 

 

The fund said it will be providing lump-sum arrears and increased pensions in relation to several thousand members, including those whose IHER benefits were scaled back when first put into payment, suspended or reduced following a review, and those whose IHER benefit had been incorrectly withdrawn when they left service.