Pilkington’s Tiles Pension Scheme (PO-763)

Subject

Bridge Trustees Ltd complain that two of the previous trustees Mr Burrows and Mr Lloyd authorised the return of £193,010.93 to Pilkington’s Tiles Limited (the Company) and in doing so acted in contravention of the rules of the Scheme and contrary to the interests of the members. As such they have committed a breach of trust and should not be entitled to an indemnity under rule 14.20.

The Deputy Pensions Ombudsman’s determination and short reasons

The complaint should be upheld against Mr Dean Burrows and Mr Stephen Lloyd as they did not act in accordance with the rules. They did not act prudently or reasonably in considering whether a return of money to the Company was allowed under the rules, what the tax implications would be and whether this was in the best interests of the members.  Mr Burrows and Mr Lloyd’s focus was on returning the money to the Company and I therefore find that they acted in deliberate disregard of the interests of the members and therefore cannot claim an indemnity under rule 14.20. I also find that they failed to inform their fellow trustees of the return of money to the Company.