For members of certain pension schemes used for "Pension Reciprocation"
Cranborne Star Pension Scheme, Grosvenor Parade Pension Scheme, Tallton Place Pension Scheme, The Lancaster Pension Scheme, The Portman Pension Scheme, Woodcroft House Pension Scheme
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Frequently Asked Questions
FREQUENTLY ASKED QUESTIONS WILL BE ADDED HERE FROM TIME TO TIME AS THEY ARE IDENTIFIED – PLEASE CHECK BACK FOR UPDATES.
Are the pension schemes’ assets safe?
Dalriada cannot yet confirm this to be the case for all the assets.
Dalriada has obtained control of the schemes’ bank accounts.
Dalriada is actively attempting to gain control of the remaining scheme investments not linked to the MPVA payments. The majority of these investments are in overseas property ventures and would appear to be highly illiquid and have little, if any, realisable value in the short to medium term.
Dalriada is actively seeking to recover funds on behalf of scheme members that have been paid to a number of parties including the Ark companies. A freezing injunction has been obtained in relation to Ark’s bank account as part of this process. There is, however, no guarantee as to how much, if any, of these funds might be recovered.
Dalriada has appointed auditors to each Scheme. Accounts for each of the Schemes up to 31 May 2011, the date Dalriada was appointed by the Pensions Regulator, have been audited and are available for download from the appropriate Scheme link above.
Scheme Accounts up to 31st May 2012 have now been audited and are available for download from the appropriate Scheme link above.
Scheme Accounts up to 31st May 2013 have now been audited and are available for download from the appropriate Scheme link above.
Scheme Accounts up to 31st May 2014 have now been audited and are available for download from the appropriate Scheme link above.
Will the value of my pension fund be reduced?
Until Dalriada has taken control of the investments and has been able to put a value on those investments, it will not be able to give members an indication of the value of their benefits under the schemes.
A significant proportion of the schemes’ investments are “invested” in MPVA assets. The value of these “investments” is highly uncertain and Dalriada is seeking Court direction as to their legal status. Dalriada will not be able to begin to place a value on these “assets” until their legal status has been confirmed.
As of Friday 16th December 2011, it has been established that MPVA loans were not validly made.
On 11th January 2012, Dalriada received copies of Notices of Appeal, lodged by Athena and Minerva. The Court has indicated to our legal advisers that it will aim to make its first decision in the window 1st to 22nd March 2012. At that point, the Court could allow Athena and Minerva permission to appeal, or it could refuse permission or, alternatively, require a hearing to determine whether or not to allow permission.
If permission to appeal is allowed, a hearing of the appeal will follow.
Announcements 9 and 11 and our updates of 28th January 2013, 17th February 2013 and 17th April 2014, set out above, give the latest position with regard to the application for permission to appeal.
Dalriada has performed a reconciliation to ensure that it has exact details of the individuals who have transferred money into the Schemes and details of the recipients of MPVA payments since this is not completely clear from the documents and computer files provided by Ark.
Investments in overseas property ventures appear to be highly illiquid and have little, if any, realisable value in the short to medium term. However Dalriada has reached agreement for the return of £4m plus interest with regard to the Cyprus investment. Announcement 9 and our update of the 28th January provide more details.
Announcement 9 also provides an update on the other investments.
Announcement 11 provides a further update on the other investments.
Announcements 12, 13 and 14 all provide a further update on the other investments.
It is likely that, as a result of the nature of the investments, the charges deducted by the administrators, payments made to introducers and the high cost of resolving the uncertainties involved, the fund value when Dalriada is able to calculate it will be significantly less than the value of funds transferred in.
What happens if I have transferred in funds but I have not received an MPVA payment?
You will not now receive an MPVA payment.
an I transfer out of the Schemes to my original scheme (or to another registered pension scheme)?
Yes, you have a statutory right to transfer your benefits.
Until Dalriada can value the funds it will be unable to pay out any transfer values.
It will be many months before any transfer values can be paid out.
Members are entitled under the Occupational Pension Schemes (Transfer Values) Regulations 1996 to a transfer value quotation within three months of the date of request. Where necessary, we have made the Pensions Regulator aware of the non-compliance with the three month disclosure requirement. The Pensions Regulator has acknowledged the non-compliance and confirmed that it does not consider that it would be appropriate to impose a penalty in relation to this breach. If necessary, Dalriada expects to seek an extension from the Pensions Regulator to the normal period for paying out transfer values.
Your original scheme would normally be under no obligation to accept you back.
What happens if my transfer has not been completed yet?
Dalriada has written to potential members that it has identified as possibly being in the process of transferring. We have advised these people to advise the administrators of the transferring scheme that the transfer is not to go ahead.
If Dalriada receives any cheques in respect of transfer payments, these will not be banked and will be returned to the administrators of the transferring scheme.
Where transfer payments have been made direct to the trustees’ bank account, we are unable to prevent these transfers from taking place.
Are PRPs and MPVAs illegal?
Dalriada has been advised by a leading barrister (a Queen’s Counsel or “QC” who specialises in pensions and trust law matters) that there is a strong possibility that the MPVA payments are “void”. Dalriada will seek Court direction on whether this is the case and has issued proceedings in the High Court to clarify the status of the MPVAs.
David Faulds, a scheme member of one of the six schemes that have entered into pensions reciprocation arrangements, has kindly agreed to represent the interests of members in the Court proceedings.
He is referred to as a Representative Beneficiary.
Mr Faulds has obtained legal representation through solicitors, Gateley, who in turn have instructed a barrister.
All Mr Faulds’ reasonable costs (which will include the cost of the solicitors and barrister) will have to be met from the assets of the Schemes.
If you wish to make contact with Gateley you can do so by any of the following methods:
Post: Gateley (Manchester) LLP, Ship Canal House, 98 King Street, Manchester, M2 4WU
Email: pensionschememembers@gateleyuk.com
Alternatively, if you wish to speak to someone at Gateley, they will be available to take telephone calls between the hours of 10am and midday and 2pm and 4pm Monday to Friday on 0161 836 7963.
Whilst members are not discouraged from contacting Gateley, because costs are being met from the assets of the Schemes, it would be sensible to limit telephone calls to relaying information that it may be useful to bring to Mr Faulds’ attention for the purposes of the Court proceedings.
Once the Court has determined the initial question of the legal status of the MPVAs it is very likely that Dalriada will need to put some further questions to the Court to provide them with direction as to how to operate the Schemes.
Dalriada would like to stress that it takes a neutral stance as regards the outcome of the Court Proceedings. Dalriada has been advised that it cannot administer the MPVA arrangements without legal clarification from the Court.
To avoid the need to incur the costs of multiple beneficiaries who may have differing interests Dalriada will, for the purposes of the Court proceedings, put forward the argument that the MPVAs were invalidly made and that the loan payments received pursuant to the MPVAs were void or voidable. Mr Faulds will, again purely in a representative capacity, argue to the contrary that the MPVAs were valid and should be operated in the manner originally intended.
The Court hearing was held between the 29th November and the 2nd December 2011. The judgment was handed down on 16th December 2011. MPVA loans were found to have been invalidly made.
On 11th January 2012, Dalriada received copies of Notices of Appeal, lodged by Athena and Minerva. The Court has indicated to our legal advisers that it will aim to make its first decision in the window 1st to 22nd March 2012. At that point, the Court could allow Athena and Minerva permission to appeal, or it could refuse permission or, alternatively, require a hearing to determine whether or not to allow permission.
If permission to appeal is allowed, a hearing of the appeal will follow.
Announcements 9 and 11 and our updates of 28th January 2013, 17th February 2013 and 17th April 2014, set out above, give the latest position with regard to the application for permission to appeal.
Our Announcement of 10 November (Announcement 14) confirmed that the application for permission to appeal had been dismissed and that our applications to Court to seek directions on the management of the Schemes going forward are now largely prepared. That Announcement also sought applications from members to act as a representative beneficiary.
Will I have to pay back any money I have received under an MPVA?
If the Court decides that MPVAs are “void” we will be required to seek repayment of the money. The objective would be to put the schemes back to the position they would have been in if the void transactions had never taken place, so far as possible.
As of 16th December it has been confirmed that MPVA loans were invalidly made.
On 11th January 2012, Dalriada received copies of Notices of Appeal, lodged by Athena and Minerva. The Court has indicated to our legal advisers that it will aim to make its first decision in the window 1st to 22nd March 2012. At that point, the Court could allow Athena and Minerva permission to appeal, or it could refuse permission or, alternatively, require a hearing to determine whether or not to allow permission.
If permission to appeal is allowed, a hearing of the appeal will follow.
Announcements 9 and 11 and our updates of 28th January 2013, 17th February 2013 and 17th April 2014, set out above, give the latest position with regard to the application for permission to appeal.
Members who have received an MPVA payment should now arrange their financial affairs on the basis that they are required to repay all of the money they have received.
As set out in Announcements 6 and 9 (16th December 2011 and 28th January 2013), those members in receipt of an MPVA payment may be subject to unauthorised payment charges by HMRC.
As set out in Announcements 11 and 14, the position taken by HMRC means that members who have not received an MPVA payment might also be subject to unauthorised payment charges by HMRC.
I feel that I have been wrongly advised to transfer into a scheme. Who should I complain to?
Dalriada’s role as Independent Trustee is to manage the schemes in the best interests of their members. If any member feels that they were wrongly advised to transfer into a scheme then Dalriada cannot assist with this complaint. You should immediately contact the firm that provided the advice.
You can get free advice from organisations like the Citizens Advice Bureau or see the Money Advice Service’s tips on making a complaint.
If a member has a complaint about any action taken by Dalriada (or prior to Dalriada’s appointment on 31 May the other trustees of the schemes) than you should complain to Dalriada.
You may also find it helpful to read our page about the regulation of pension schemes. If you wish to speak to someone independent of Dalriada, The Pensions Advisory Service provides a free, independent source of advice.
What should I do if I have any further questions?
If you are a member or prospective member of one of the schemes and have a personal question please contact Dalriada in one of the following ways:
By using the Get in Touch form on this website.
By telephoning our helpline for members
028 9041 2756By post to
Dalriada Trustees Limited
Linen Loft
27-37 Adelaide Street
Belfast
BT2 8FEBy e-mailing suzanne_wilson@dalriadatrustees.co.uk
Media enquiries should be directed to the contacts named on our Media Page.
