DETERMINATION NOTICE under section 96(2)(d) of the Pensions Act 2004 ( the Act ) The Pensions Regulator case ref: 969/05 Schemes: Prudential Company Retirement Schemes (Batch 1 Limited Companies) 1. A J Bryan (Memorials) Ltd Company Retirement Scheme 2. Brian Pulfrey Ltd Company Retirement Scheme 3. Burwood Engineering (Burnley) Ltd Company Retirement Scheme 4. C A Edwards (Coal Merchants) Ltd Company Retirement Scheme 5. Claylake Commercials Limited Company Retirement Scheme 6. Daniel Johnson & Son Ltd Company Retirement Scheme 7. Davathane Ltd Company Retirement Scheme 8. E Manley & Co Ltd Company Retirement Scheme 9. Healthprint Ltd Company Retirement Scheme 10. Heavyparts (Commercial Spares) Ltd Company Retirement Scheme 11. I D & E A Staff Company Retirement Scheme 12. J K R Civil Engineering Ltd Company Retirement Scheme 13. Kemp Lovatt Ltd Company Retirement Scheme 14. Kingswood Productions Ltd Company Retirement Scheme 15. Mawer & Saunders Ltd Company Retirement Scheme 16. Old Mill Cars Ltd Company Retirement Scheme 17. P S P Refrigeration Ltd Company Retirement Scheme 18. Peace and Smith Ltd Company Retirement Scheme 19. Prototype Ltd Company Retirement Scheme 20. R & S Tools (Lincoln) Ltd Company Retirement Scheme 21. Rinco (UK) Ltd Company Retirement Scheme 22. Rutherford & Morgan Ltd Company Retirement Scheme 23. S A Sutton Ltd Company Retirement Scheme 24. S Morris & Sons (Birmingham) Ltd Company Retirement Scheme 25. SNJ (Fabrications) Limited Company Retirement Scheme DM No: 524153 1
26. Southern Software Services Limited Company Retirement Scheme 27. Sydenham Motor Co Ltd Company Retirement Scheme 28. Telemec Automatic Company Retirement Scheme 29. TWM Durafencing Ltd Company Retirement Scheme 30. Valmar Motor Co Ltd Company Retirement Scheme 31. W A W Building Contractors Company Retirement Scheme 32. Ward Bros (Haulage) Ltd Company Retirement Scheme Batch 2 (Sole Traders) 33. Cliff Townsend Builders Company Retirement Scheme 34. Cotswold Printing Company Retirement Scheme 35. Gordon Brown Company Retirement Scheme 36. Hortons Coaches Company Retirement Scheme 37. Normela Company Retirement Scheme 38. W E Dalton Company Retirement Scheme Batch 3 (Partnerships + Miscellaneous) 39. E A Dove Company Retirement Scheme 40. J & J Howe Company Retirement Scheme 41. J I & E Tarbit Company Retirement Scheme 42. L A Lampard & Co Company Retirement Scheme 43. Leith & Granton Boatmens Association Company Retirement Scheme 44. Lumley Bakery Company Retirement Scheme 45. Mike Thompson (Electrical) Company Retirement Scheme 46. R J & W M Sharland & Sons Company Retirement Scheme 47. Tabor Farms Company Retirement Scheme 48. Winterslow Garage Company Retirement Scheme Prudential Company Pension Schemes Batch 22 49. George Clark Company Pension Scheme 50. Portishead Relay Ltd Company Pension Scheme 51. J Wilson & Sons (Montaive) Ltd Company Pension Scheme 52. T W Macintyre Ltd Company Pension Scheme 53. Charles Morrison & Son Ltd Company Pension Scheme 54. Heather Bakeries Alperton Limited Company Pension Scheme 55. J W Pennington (Bradford Wool Sales) Ltd No 1 Scheme Company Pension Scheme 56. J W Pennington (Bradford Wool Sales) Ltd No 2 Scheme Company DM No: 524153 2
Pension Scheme 57. Machine Removal Services Ltd Company Pension Scheme 58. Coleman Bros (Highgate) Ltd Company Pension Scheme 59. Noel Sansom Ltd Company Pension Scheme 60. Atlantic Flooring Ltd Company Pension Scheme 61. Farringdon Grinding Works Company Pension Scheme 62. Quaker House Colliery Co Ltd Company Pension Scheme 63. D A Harris Ltd Company Pension Scheme 64. Wavertree Labour & Social Club Company Pension Scheme 65. Woking Glass Works Company Pension Scheme 66. P W Last Limited Company Pension Scheme 67. E R Fish Company Pension Scheme 68. West Midlands Sheet Metal Products Ltd Company Pension Scheme 69. J S Shearer & Co (Edinburgh) Ltd Company Pension Scheme 70. Skernside Patternmaking Co Ltd Company Pension Scheme 71. London House Furnishers Ltd Company Pension Scheme 72. Paul Taylor BJE Ltd Company Pension Scheme 73. A & D Fruit Ltd Company Pension Scheme 74. Mould Hobbings Ltd Company Pension Scheme 75. Agricultural Supplies (Dewsbury) Ltd Company Pension Scheme 76. Raymond Swan Ltd Company Pension Scheme 77. David Thomas (Contractors) Ltd Company Pension Scheme 78. Hope & Harrison Company Pension Scheme 79. BBH Coil & Transformer Manufacturing Co Ltd Company Pension Scheme 80. Paul Double & Son Ltd Company Pension Scheme 81. Hadrian Window Cleaning Services Limited Company Pension Scheme 82. Ridgegrove Ltd Company Pension Scheme Prudential Company Pension Schemes Batch 23 83. A & B Kelsey Company Pension Scheme 84. J P Jelly & Partners (Northern) Company Pension Scheme 85. Oldham Diesels Company Pension Scheme 86. Creech Motors Company Pension Scheme 87. Gladwin Coaches Company Pension Scheme 88. Eastwood Auto Electrical Service Company Pension Scheme DM No: 524153 3
Prudential Company Pension Schemes Batch 24 89. J J Murphy and Co Company Pension Scheme 90. Highfield Garage Company Pension Scheme 91. James Rae & Son Company Pension Scheme 92. Failsworth Construction Co Company Pension Scheme 93. Fred R Schutte Company Pension Scheme 94. Duffields Dairy Company Pension Scheme 95. Britains Westerham Motor Garage Company Pension Scheme 96. Robin Hood Inn Company Pensions Scheme 97. Bankhouse Motors Company Pension Scheme To: Of: Prudential Corporate Pensions Trustee Limited Kings Reach 38-50 Kings Road Reading RG1 3AA Date: 20 March 2006 TAKE NOTICE that the Pensions Regulator of Napier House, Trafalgar Place, Brighton BN1 4DW ( The Regulator ) has made a determination on 15 March 2006 1. Determination 1.1 An application by Prudential Corporate Pensions Trustee Limited for the Regulator to issue orders authorising or directing that the 97 occupational pension schemes listed above to be wound up. 1.2 The application was granted. 2. Procedure Followed: Standard 2.1 By its Warning Notice dated 17 February 2006 ( the Warning Notice ) the Pensions Regulator gave notice that it proposed to take the above action pursuant to the application of the trustee, Prudential Corporate Pensions Trustee Limited. 2.2 The Regulator determined that the following parties are directly affected by this determination: 1. Prudential In its role as trustee of the 97 schemes. Corporate Pensions Trustee Limited DM No: 524153 4
(referred to as the directly affected party ) The directly affected party was entitled to make representations to the Pensions Regulator about the determination. 2.3 Following the issue of the Warning Notice Prudential Corporate Pensions Trustee Limited did not exercise its right to make representations to the Pensions Regulator. 3 Relevant Statutory Provisions Pensions Act 1995 (as amended) 11 Powers to wind up schemes (1) Subject to the following provisions of this section, the Authority may by order direct or authorise an occupational pension scheme to be wound up if they are satisfied that- (a) the scheme, or any part of it, ought to be replaced by a different scheme, (b) the scheme is no longer required, or (c) it is necessary in order to protect the interests of the generality of the members of the scheme that it be wound up. (2) The Authority may not make an order under this section on either of the grounds referred to in subsection (1)(a) or (b) unless they are satisfied that the winding up of the scheme- (a) cannot be achieved otherwise than by means of such an order, or (b) can only be achieved in accordance with a procedure which- (i) is liable to be unduly complex or protracted, or (ii) involves the obtaining of consents which cannot be obtained, or can only be obtained with undue delay or difficulty, and that it is reasonable in all the circumstances to make the order. (3A) not relevant to this application (3B) not relevant to this application (4) An order under this section authorising a scheme to be wound up must include such directions with respect to the manner and timing of the winding up as the Authority think appropriate having regard to the purposes of the order. This subsection is subject to sections 28, 135 and 219 of the Pensions Act 2004 (winding up order made when freezing order has effect in relation to scheme, during assessment period under Part 2 of that Act etc). (5) The winding up of a scheme in pursuance of an order of the Authority under this section is as effective in law as if it had been made under powers conferred by or under the scheme. (6) An order under this section may be made and complied with in relation to a scheme- DM No: 524153 5
(a) in spite of any enactment or rule of law, or any rule of the scheme, which would otherwise operate to prevent the winding up, or (b) except for the purpose of the Authority determining whether or not they are satisfied as mentioned in subsection (2), without regard to any such enactment, rule of law or rule of the scheme as would otherwise require, or might otherwise be taken to require, the implementation of any procedure or the obtaining of any consent, with a view to the winding up. (6A) Subsection (6) does not have effect to authorise the Authority to make an order as mentioned in paragraph (a) or (b) of that subsection, if their doing so would be unlawful as a result of section 6(1) of the Human Rights Act 1998 (unlawful for public authority to act in contravention of a Convention right). (7) In the case of a public service pension scheme- (a) an order under subsection (1) directing or authorising the scheme to be wound up may only be made on the grounds referred to in paragraph (c), and (b) such an order may, as the Authority think appropriate, adapt, amend or repeal any enactment in which the scheme is contained or under which it is made. The Pensions Act 2004 Section 100 Duty to have regard to the interests of members etc (1) The Regulator must have regard to the matters mentioned in subsection (2)- (a) when determining whether to exercise a regulatory function- (i) in a case where the requirements of the standard or special procedure apply, or (ii) on a review under section 99, and (b) when exercising the regulatory function in question. (2) Those matters are- (a) the interests of the generality of the members of the scheme to which the exercise of the function relates, and (b) the interests of such persons as appear to the Regulator to be directly affected by the exercise. 4. Relevant Guidance (2) The Authority may not make an order under this section [11] on either of the grounds referred to in subsection (1)(a) or (b) unless they are satisfied that the winding up of the scheme- (a) cannot be achieved otherwise than by means of such an order, or (b) can only be achieved in accordance with a procedure which- (i) is liable to be unduly complex or protracted, or (ii) involves the obtaining of consents which cannot be obtained, or can only be obtained with undue delay or difficulty, and that it is reasonable in all the circumstances to make the order. DM No: 524153 6
5. Background to the Application 1. On 4 and 6 January 2006 Prudential Corporate Pensions Trustee Limited (PCPTL) was appointed as trustee to these 97 schemes under section 7(3)(b) of the Pensions Act 1995: to secure that the number of trustees is sufficient for the proper administration of the scheme. 2. PCPTL wrote to the Regulator on 2 February 2006 in relation to the 97 schemes listed above stating that they had been appointed as trustee of these schemes in January 2006 and: The rules for the schemes in question do not contain provision for the schemes to be wound up. The purpose of this letter is to formally request that the Pensions Regulator issues orders under section 11 of the Pensions Act 1995 which would authorise the trustee to wind up the schemes. 3. All the schemes involved are paid up, fully insured, earmarked money purchase plans which have never been contracted out. 4. PCPTL cited the following reasons for the applications: (a) Under the constituting Group Policy for each scheme the employer as Policyholder was the trustee. The employer has ceased to exist and there is now no trustee and no-one with the power to appoint a trustee. (b) The rules within the Group Policy for each scheme do not contain provisions which allow the scheme to be wound up. The Power to amend the terms of the Group Policy lies with the employer/policyholder who has ceased to exist. (c) Without an employer or trustee, there is no party under section 11(3) of the Pensions Act 1995 capable of making an application for an order to authorise the winding-up of the scheme. 5. In relation to the number of members for each scheme PCPTL referred back to an earlier email to Opra dated 10 April 2001 which stated: You have asked that for each scheme we supply the total number of members together with the split between deferred members and pensioners. We have a problem here which we have mentioned in earlier correspondence. The number of deferred members is not a problem. However, under the first three of the four product types, [Prudential Company Pension Schemes; Prudential Company Retirement Schemes; Prudential Unit Schemes; Prudential Profits to Members Schemes] all pensions in payment have been set up on a centralised record basis under a single reference for that product type. We have examined the data available but it is now virtually impossible to trace the pensioner back to the individual scheme under which the pension is being paid. When these pensions first started to be paid Disclosure of Information was not an issue and there was no obvious need to maintain records at an individual scheme level. Consequently, we are unable to determine whether individual schemes have any pensioners, or the numbers involved (the only exception to this is a batch of schemes where the last member(s) has/have retired since late 1997 where we can say for certain whether or not there are pensions in payment (but not the number) under a particular scheme). DM No: 524153 7
In view of the above points PCPTL therefore sought orders to wind up these 97 schemes. 6. Facts and Matters Relied Upon 1. These schemes were no longer needed because: all the Limited Companies had been dissolved; the sole traders had died or were untraceable; the partners in the partnerships had died or were untraceable; 2. The best interests of the members of the schemes would be served by the winding up of these schemes. 3. The winding up of the schemes could not otherwise be achieved pursuant to section 11(2)(a) of Pensions Act 1995. 7. Conclusion: Details of Determination 1. The Pensions Regulator hereby directs that the following schemes: 1. A J Bryan (Memorials) Ltd Company Retirement Scheme 2. Brian Pulfrey Ltd Company Retirement Scheme 3. Burwood Engineering (Burnley) Ltd Company Retirement Scheme 4. C A Edwards (Coal Merchants) Ltd Company Retirement Scheme 5. Claylake Commercials Limited Company Retirement Scheme 6. Daniel Johnson & Son Ltd Company Retirement Scheme 7. Davathane Ltd Company Retirement Scheme 8. E Manley & Co Ltd Company Retirement Scheme 9. Healthprint Ltd Company Retirement Scheme 10. Heavyparts (Commercial Spares) Ltd Company Retirement Scheme 11. I D & E A Staff Company Retirement Scheme 12. J K R Civil Engineering Ltd Company Retirement Scheme 13. Kemp Lovatt Ltd Company Retirement Scheme 14. Kingswood Productions Ltd Company Retirement Scheme 15. Mawer & Saunders Ltd Company Retirement Scheme 16. Old Mill Cars Ltd Company Retirement Scheme 17. P S P Refrigeration Ltd Company Retirement Scheme 18. Peace and Smith Ltd Company Retirement Scheme DM No: 524153 8
19. Prototype Ltd Company Retirement Scheme 20. R & S Tools (Lincoln) Ltd Company Retirement Scheme 21. Rinco (UK) Ltd Company Retirement Scheme 22. Rutherford & Morgan Ltd Company Retirement Scheme 23. S A Sutton Ltd Company Retirement Scheme 24. S Morris & Sons (Birmingham) Ltd Company Retirement Scheme 25. SNJ (Fabrications) Limited Company Retirement Scheme 26. Southern Software Services Limited Company Retirement Scheme 27. Sydenham Motor Co Ltd Company Retirement Scheme 28. Telemec Automatic Company Retirement Scheme 29. TWM Durafencing Ltd Company Retirement Scheme 30. Valmar Motor Co Ltd Company Retirement Scheme 31. W A W Building Contractors Company Retirement Scheme 32. Ward Bros (Haulage) Ltd Company Retirement Scheme 33. Cliff Townsend Builders Company Retirement Scheme 34. Cotswold Printing Company Retirement Scheme 35. Gordon Brown Company Retirement Scheme 36. Hortons Coaches Company Retirement Scheme 37. Normela Company Retirement Scheme 38. W E Dalton Company Retirement Scheme 39. E A Dove Company Retirement Scheme 40. J & J Howe Company Retirement Scheme 41. J I & E Tarbit Company Retirement Scheme 42. L A Lampard & Co Company Retirement Scheme 43. Leith & Granton Boatmens Association Company Retirement Scheme 44. Lumley Bakery Company Retirement Scheme 45. Mike Thompson (Electrical) Company Retirement Scheme 46. R J & W M Sharland & Sons Company Retirement Scheme 47. Tabor Farms Company Retirement Scheme 48. Winterslow Garage Company Retirement Scheme 49. George Clark Company Pension Scheme 50. Portishead Relay Ltd Company Pension Scheme 51. J Wilson & Sons (Montaive) Ltd Company Pension Scheme 52. T W Macintyre Ltd Company Pension Scheme 53. Charles Morrison & Son Ltd Company Pension Scheme DM No: 524153 9
54. Heather Bakeries Alperton Limited Company Pension Scheme 55. J W Pennington (Bradford Wool Sales) Ltd No 1 Scheme Company Pension Scheme 56. J W Pennington (Bradford Wool Sales) Ltd No 2 Scheme Company Pension Scheme 57. Machine Removal Services Ltd Company Pension Scheme 58. Coleman Bros (Highgate) Ltd Company Pension Scheme 59. Noel Sansom Ltd Company Pension Scheme 60. Atlantic Flooring Ltd Company Pension Scheme 61. Farringdon Grinding Works Company Pension Scheme 62. Quaker House Colliery Co Ltd Company Pension Scheme 63. D A Harris Ltd Company Pension Scheme 64. Wavertree Labour & Social Club Company Pension Scheme 65. Woking Glass Works Company Pension Scheme 66. P W Last Limited Company Pension Scheme 67. E R Fish Company Pension Scheme 68. West Midlands Sheet Metal Products Ltd Company Pension Scheme 69. J S Shearer & Co (Edinburgh) Ltd Company Pension Scheme 70. Skernside Patternmaking Co Ltd Company Pension Scheme 71. London House Furnishers Ltd Company Pension Scheme 72. Paul Taylor BJE Ltd Company Pension Scheme 73. A & D Fruit Ltd Company Pension Scheme 74. Mould Hobbings Ltd Company Pension Scheme 75. Agricultural Supplies (Dewsbury) Ltd Company Pension Scheme 76. Raymond Swan Ltd Company Pension Scheme 77. David Thomas (Contractors) Ltd Company Pension Scheme 78. Hope & Harrison Company Pension Scheme 79. BBH Coil & Transformer Manufacturing Co Ltd Company Pension Scheme 80. Paul Double & Son Ltd Company Pension Scheme 81. Hadrian Window Cleaning Services Limited Company Pension Scheme 82. Ridgegrove Ltd Company Pension Scheme 83. A & B Kelsey Company Pension Scheme 84. J P Jelly & Partners (Northern) Company Pension Scheme 85. Oldham Diesels Company Pension Scheme DM No: 524153 10
86. Creech Motors Company Pension Scheme 87. Gladwin Coaches Company Pension Scheme 88. Eastwood Auto Electrical Service Company Pension Scheme 89. J J Murphy and Co Company Pension Scheme 90. Highfield Garage Company Pension Scheme 91. James Rae & Son Company Pension Scheme 92. Failsworth Construction Co Company Pension Scheme 93. Fred R Schutte Company Pension Scheme 94. Duffields Dairy Company Pension Scheme 95. Britains Westerham Motor Garage Company Pension Scheme 96. Robin Hood Inn Company Pensions Scheme 97. Bankhouse Motors Company Pension Scheme commence wind up proceedings with effect on and from 28 days following the date of signing of these Orders in accordance with section 96(5)(a) of the Pensions Act 2004. 2. These Orders are made because the Pensions Regulator is satisfied that the schemes are no longer required pursuant to section 11(1)(b) of the Pensions Act 1995. 3. The Schemes be wound up in accordance with the provisions of sections 73-75 of the Pensions Act 1995 (as modified by the Occupational Pension Schemes ((Winding Up) Regulations 1996) and any relevant provisions of those regulations, or such other statutory provisions and regulations as may be in force from time to time and may be applicable to the winding up of the schemes. 8. Decision Maker The determination which gave rise to the obligation to give this Determination Notice was made by the Determinations Panel. 9. Scheme details Type of scheme Status of scheme Membership Size of funds Contracted in/out Earmarked, fully insured, defined contribution Paid up Unknown Unknown Contracted in DM No: 524153 11
10. Scheme trustees Name Period of office Status of trustee 1. Prudential Corporate Pensions Trustee Limited From 6 January 2006 by order of the Regulator under section 7(3)(b) of the Pensions Act 1995. Corporate 11. Scheme advisers Type Name Period of office Company 1. Insurer Prudential Unknown Prudential 12. Provider details Name Address Nature of business Prudential Kings Reach 38-50 Kings Road Reading RG1 3AA Insurance company 13. Important Notices This Determination Notice is given to you under sections 96(2)(d) of the Act. The following statutory rights are important. 14. Referral to the Pensions Regulator Tribunal 14.1 You have the right to refer the matter to which this Determination Notice relates to the Pensions Regulator Tribunal ( the Tribunal ). Under section 103(1)(b) of the Act you have 28 days from the date this Determination Notice is given to you to refer the matter to the Tribunal or such other period as specified in the Tribunal rules or as the Tribunal may allow. A reference to the Tribunal is made by way of a written notice signed by you and filed with a copy of this Determination Notice. The Tribunal s address is: 15-19 Bedford Avenue, London WC1B 3AS (tel: 020 7612 9649). The detailed procedures for making a reference to the Tribunal are contained in section 103 of the Act and the Tribunal Rules. 14.2 You should note that the Tribunal rules provide that at the same time as filing a reference notice with the tribunal, you must send a copy of the reference notice to The Pensions Regulator. Any copy reference notice should be sent to Determinations Support at The Pensions Regulator, Napier House, Trafalgar Place, Brighton BN1 4DW. DM No: 524153 12
Signed: Michael Maunsell... Chairman: Michael Maunsell... Date: 20 March 2006... DM No: 524153 13