23 August 2011
On the 23 August 2011 the PPF published the following advice to Trustees on the requirement to purchase Missing Beneficiary Insurance for FAS1 Annuitising Schemes.
“The Board of the PPF (the “Board”), as FAS Scheme Manager, would not usually consider it appropriate for trustees of schemes which are eligible for FAS to spend scheme assets on obtaining missing beneficiary insurance. This is because it does not appear to the Board that such cover is normally required or even necessary. If any trustee can demonstrate that this cover is required in its case, only proportionate cover should be bought and at proportionate cost.
Further, it is also the Board’s policy that if trustees do have the power under their Scheme’s Trust Deed and Rules to obtain run-off insurance, both the extent of cover obtained and the cost of such insurance should be proportionate to the risks in fact faced by the trustee.
If any trustee wishes to buy any such insurance with scheme assets, the Board would wish to discuss the matter before any policy is bought.
The Board will consider all cases on their own facts and determine whether it is appropriate to apply this policy to each such case. Where the Board determines that it is not appropriate to buy a missing beneficiary policy and/or a policy of run-off insurance in any particular case, the Board would consider issuing a direction under section 134 Pensions Act 2004 (as modified for its application to the Financial Assistance Scheme) to secure compliance with this policy.”
If you have any questions regarding this advice in the first instance please contact your FAS1 Caseworker.