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Duties of administrator (to be familiar with scheme provisions and not to commit maladministration) 2

United Kingdom
22/03/1999
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Reference: G00030 / G00031

The case involved the payment of surplus to the employer where there was no power in the rules to do so. Although the Ombudsman decided on a technical ground that the case was not within his jurisdiction, he did say that administrators had a duty to know the scheme rules and know when a breach had occurred or was likely to occur. In addition, they had a duty to members to prevent payments being made in breach of trust. In this case they should have been aware that the trustees had not taken legal advice and their obligation was not discharged just by having advised the trustees to do so. Administrators have a duty to members to avoid maladministration.





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