The Trustees of The Pension Plan v Finsac Ltd

IN THE SUPREME COURT OF JUDICATURE OF JAMAICA

CLAIM NO. 2005/HCV 1845

IN THE MAVER OF THE PENSION PLAN

FOR THE EMPLOYEES OF CITIZENS

BANK JAMAICA LIMITED

AND

IN THE MAVER OF THE TRUSTEES ACT

BETWEEN

AND

The Trustees of the Pension Plan APPLICANTS

for the Employees of Citizens

Bank Limited now RBV

Bank Jamaica Limited

FINSAC LIMITED RESPONDENT

IN CHAMBERS

Charles Piper and Miss Kanika Tomlinson for the applicants

Nicole Lambert and Jerome Spencer instructed by the Director of State Proceedings

for the respondent -1

July 4 and 19, 2007

DISPOSITION OF SURPLUS OF PENSION SCHEME, CONSTRUCTION OF PENSION

SCHEME RULES, IMPLIED TERM, CONSTRUCTIVE TRUST

SYKES J.

1. Despite the difficult economic climate in Jamaica, the Citizens Bank Limited pension

scheme has done reasonably well. After meeting all liabilities, contractual and

otherwise, according to the actuary, there is a surplus of JA$115.1 million. The scheme

is being wound up. An actuary, Mr. Rambarran, came up with a distribution of the surplus

that saw JA$24.5 million going back to the employer. This case is about who should get

the JA$24.5m. The Financial Sector Adjustment Company Limited ("Finsac") asserts

that it is entitled to the JA$24.5 million. The trustees of the scheme, who have applied

to the court for an interpretation of the pension rules, contend that under the rules,

the employees are entitled t o the entire surplus. The third possible claimant, RBTT

Bank Jamaica Limited ("the bank") has declared that it is not interested in joining this

furious dash for the millions. It is common ground that the employer, for the purposes

of these proceedings is the bank.