MNOPF - Old Section
Recently, the Trustee undertook a strategic review of the Old Section (relevant to members who joined the scheme on or before 5 April 1978) of the MNOPF with the objective of enhancing the security of members’ benefits. As part of the review, the possibility of securing Old Section benefits with an insurance company by buying a policy in the name of the Trustee was investigated.
As a result, the Trustee recently secured a significant proportion of the Old Section's benefits through an insurance policy with
Lucida, a UK insurer regulated by the Financial Services Authority. The insurance policy is held as an investment of the Old Section and represents about 40% of its assets.
Benefits will continue to be paid to members in the usual way by MNPA Ltd. The agreement does not change the relationship between members and the MNOPF, nor the relative security of different members of the MNOPF.
The insurance policy provides additional protection for members’ benefits due to safeguards imposed by the regulation of insurers, additional capital reserve that Lucida is required to hold to provide the policy, and additional specific security agreed between
Lucida and the Trustee in the contract.
As before, members' benefits remain protected under the MNOPF by the employer covenant and ultimately the Pension Protection Fund.
The Trustee’s long term goal is to continue to secure benefits and the policy with
Lucida is an important step towards meeting this goal.
Q: Does this change the way my pension is paid?
A: No, the buy-in is held as an asset of the scheme and does not change the relationship between members and the MNOPF.
Q: I am a New Section member – am I impacted?A: No, this deal relates to the Old Section only and assets and liabilities of the New Section are held entirely separately.
Q: As a member, do I need to take any action?
A: No, the buy-in does not change the relationship between members and the Old Section and is an investment decision taken by the Trustee. No action is required by you and your pension will continue to be paid by the MNOPF as currently.
Q: At the moment my benefits are administered by MNPA Ltd. Will this change?
A: There is no impact on the administration of member benefits and there are no plans to change the existing relationship with MNPA Ltd.
Q: I am currently receiving a pension – will it increase as a result of the purchase of the insurance policy?
A: The insurance policy does not affect the amount of pensions paid to members. Future pension increases will depend, as they have in the past, on the extent of any surplus assets in the Fund.
Q: Will there be any reduction in the amount of my pension?
A: Your benefits will not be reduced as a result of the Trustee buying the insurance policy.
Q: Will I be contacted by the insurer in future?
A: The insurer will not contact members. Members will continue to be contacted in the normal way by the Trustee. Members should continue to address any questions they have to the Trustee as currently (see below for details).
Q: Have my benefits been insured?
A: The insurance policy is an asset of the Old Section and so provides security for all Old Section members.
Q: I’ve never heard of Lucida, who are they?
A: Lucida are an insurance company who specialise in providing insurance to the trustees of pension funds. They are based in the UK and regulated by the Financial Services Authority. Click here to visit their website.
Q: Who should I contact if I have any questions?
A: If you have any additional questions please contact the MNOPF at the following address:
MNOPF Trustees Ltd
Ashcombe House
The Crescent
Leatherhead
Surrey
KT22 8LQ
Tel: +44 (0)1372 200900
Email: memberenquiries@mnopf.co.uk
Website: www.mnopf.co.uk