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Pension scheme & benefit plan case studies
Chubb Specialty Insurance



Here are a few examples of why you may need our pension scheme and benefit plan liability insurance.

Stock market rise

After the sale of a company subsidiary, the pension trustees were tasked with transferring the funds into a new pension fund. According to the rules, the amount sent over had to be such ‘as the trustees, after consulting with the actuary, decide to be just and equitable’. They consulted the actuary but before the transfer date the value of the fund was enhanced by a strong stock market rise. The trustees did not take this into account and were subsequently sued by the scheme members.

Borrowing from the fund assets
When a newly acquired subsidiary came into financial difficulties, the directors and scheme trustees of a private company borrowed funds from the pension scheme to help the subsidiary out. The loan was repaid in the form of shares in other group companies. The value of these shares subsequently plummeted and the scheme beneficiaries were sued for fraud, maladministration and a £3million shortfall.

Delayed information
An employee, on redundancy, was entitled to have his pension transferred out of the company scheme. The professional administrators and assisting trustees gave the employee late and inadequate information regarding this. The error and delay, compounded by stock market movements, constituted maladministration.