Following the closure of the MNOPF to Defined Benefit (“DB”) accrual on 31 March 2016, certain variations and enhancements were provided to former active DB members (these are defined in the MNOPF Trust Deed and Rules and include revaluation of deferred benefits by an additional 1.5% per annum compound on top of the normal statutory revaluation that applies to deferred pensions). The variations and enhancements continue to be relevant to those former active MNOPF DB members who joined the Ensign Retirement Plan (for the MNOPF) on 1 April 2016 and who subsequently ceased to be in pensionable service in the MNOPF on 31 March 2018 when the MNOPF Money Purchase section was closed and transferred to the Ensign Retirement Plan (“Ensign”) on 1 April 2018 and continue to be active members of Ensign.
In view of the proposed transfer of member benefits from Ensign to the Smart Pension Master Trust (“Smart Pension”), the Ensign Trustee has agreed that the scheme will be closed to future contributions from the end of 31 March 2023 and that contributions from 1 April 2023 will be paid to Smart Pension (or an alternative pension arrangement where a member’s employer has chosen not to join Smart Pension).
In view of these changes, on 28 September 2022, the MNOPF Trustee Board agreed to amend the MNOPF Trust Deed and Rules to remove the eligibility requirement that the variations and enhancements were contingent on Ensign active membership. This amendment ensures that an Ensign member who ceases to be an active member of Ensign on the Ensign Active Membership Cessation Date (31 March 2023) as a result of the winding up of Ensign, will continue to be eligible for the variations and enhancements after that date.
However, if a current Ensign active member were to cease paying contributions prior to the Ensign Active Membership Cessation Date (31 March 2023), then they would no longer be an Ensign active member at 31 March 2023 and therefore would no longer be eligible to receive these variations and enhancements.