MNOPF Funding Shortfall to Deliver Hard Hit

MarineLink.com
Friday, July 12, 2013

International accountant and shipping adviser Moore Stephens warned that the latest valuation relating to the post-1978 (new) section of the Merchant Navy Officers Pension Fund (MNOPF) will place further financial strain on shipping companies involved in the scheme.

Under the valuation, the MNOPF trustees reported a funding shortfall as at March 31, 2012 of £492 million. Although this is less than had been anticipated, it nevertheless represents an increase of £152 million (discounted to £120 million) on the deficit recorded in the March 31, 2009 valuation.

To eliminate the funding shortfall, the trustees have called for additional contributions with a present value of £120 million as at March 31, 2012 under a recovery plan beginning from September 30, 2013 and ending on September 30, 2025. There is a payment by installment option, but companies with a deficit of more than £250,000 will have to submit to a new credit assessment in order to qualify for this.

Employers’ contributions for existing members are also increasing, from 15.5% to 20%, while active member contributions are going up from 9.5% to 12.2%.

Michael Simms, a partner with the shipping group at Moore Stephens, said, “These changes will come as a further body-blow to companies which have been under severe financial pressure for the past five years due to the global financial downturn and the combination of declining freight rates, increased competition and higher operating costs in the shipping industry.  In addition to the principal sums required, companies will also have to factor in the cost of their accounting requirements and assess the impact on loan covenants and other banking arrangements. For those opting to pay by installments, meanwhile, there is the additional cost of undergoing a new credit assessment, which is not insignificant. For shipowners already struggling to keep their heads above water, these increased pension costs represent an unwelcome, if not entirely unexpected, additional financial burden.”
 

Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Thordon Bearings Names New China Distributor

Thordon Bearings Inc. of Canada announced that CY Engineering Co. Ltd. will take over as the new authorized distributor for the People’s Republic of China, including Macau and Hong Kong,

Eniram Expands Training Services, Onboard and Onshore

Eniram Ltd, a provider of energy management technology and analytic services to the shipping industry, today announced the addition of in-depth training services

ClassNK Verifies lino Marine Service GHG

Classification society ClassNK has carried out the independent third-party verification of Iino Marine Service’s greenhouse gas (GHG) emissions inventory based on a reasonable level of assurance.

Navy

Iranian Ship, Crew Escape Captivity off Somali Coast

An Iranian fishing vessel and its crew have escaped after being held captive for five months by Somali fishermen, maritime piracy experts said on Friday, but it

Migrant Boat Sinks off Libya; 200 Feared Dead

A boat packed with mainly African migrants bound for Italy sank off the Libyan coast on Thursday and officials said up to 200 might have died. A security official in the western town of Zuwara,

Russian-Chinese Naval Drills End

The second phase of the Russian-Chinese Joint Sea-2015 naval maneuvers has officially ended outside the port of Vladivostok in Russia’s Far East, says spokesman

Finance

Oil Steadies as Equities Rally

Recovering stock markets boost oil prices; U.S. crude on track for first weekly gain in nine weeks. Oil prices steadied on Friday after bouncing back from six-and-a-half-year

Wärtsilä Scrubbers for Finnlines Vessels

Finnlines, a Ro-Ro and passenger vessel operator with services in the North and Baltic Seas, has contracted Wärtsilä to supply three vessels with exhaust cleaning scrubber systems.

Bollore Bags Contract for Kribi Container Port

France's Bollore-led consortium has been awarded the contract to develop and operate a container terminal in Cameroon's deep-water port of Kribi, says a report in Reuters.

News

Thordon Bearings Names New China Distributor

Thordon Bearings Inc. of Canada announced that CY Engineering Co. Ltd. will take over as the new authorized distributor for the People’s Republic of China, including Macau and Hong Kong,

LUKOIL Marine Lubricants Opens Gothenburg Warehouse

LUKOIL Marine Lubricants informs it has opened a new warehouse in Gothenburg.   The marine lubricants supplier said it constantly strives to expand its global supply network,

Eniram Expands Training Services, Onboard and Onshore

Eniram Ltd, a provider of energy management technology and analytic services to the shipping industry, today announced the addition of in-depth training services

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Offshore Oil Pipelines Salvage Ship Electronics Ship Repair Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 2.3464 sec (0 req/sec)