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Jargon Buster

MNT/MND

Member Nominated Trustee/Member Nominated Director

MFR

Minimum Funding Requirement

Money Purchase Arrangement

see Defined Contribution Scheme above.

Minimum Funding Requirement

The discredited and now defunct minimum funding requirement for defined benefit schemes. Replaced by the statutory funding objective for actuarial valuations after 22 September 2005.

Member Nominated Trustee

The Pensions Act 1995 made provision for member nominated trustees (or member nominated directors, where there is a corporate trustee). The original opt out available to employers has ceased to apply. Currently, members must be allowed to nominate one third of the trustees.

Articles

AON Pension Trustees Ltd v MCP Pension Trustees Limited [2010] EWCA Civ 377

This case is important on two levels. From a practical perspective, it is a stark reminder to all trustees of the importance of keeping accurate and up-to-date records of their beneficiaries. Equally the case shows how vital it can be to take out insurance on the winding-up of a trust.

From a technical perspective, the case is important because it confirms, for the first time, that the protection afforded by section 27 of the Trustee Act 1925 can be extended to trustees of pension schemes. However, trustees cannot rely on the s27 protection when they have already had ‘notice’ of a claim. The judgment examines what constitutes notice for these purposes.

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