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 September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Decade Old India Shipping Summit Makes History

In ten years, India Shipping Summit held consistently in Mumbai, has sailed on a robust growth course despite the worldwide witnessing recessionary waves buffeting any endeavors to grow and gain.

Liebherr to Deliver RTGs to Mayotte and Manila

Liebherr confirms orders for variable speed RTGs and electric RTGs. DPWorld Asian Terminals Inc. has placed an order with Liebherr Container Cranes for a further 5 RTGs at its Manila facility.

U.S. Navy Contracts 12 Rapid Response Skimmers

Kvichak Marine won a US Navy contract for 12 30-ft.Rapid Response Skimmers (RRS) for delivery over the next 18 months, with options for up to 30 additional skimmers to be delivered through 2019.

Navy

Navy to Commission Submarine North Dakota

The Navy will commission its newest attack submarine North Dakota, during a ceremony Saturday, Oct. 25, 2014, at Submarine Base New London in Groton, Connecticut.

US Navy CNO: Photo of the Day

Chief of Naval Operations (CNO) Adm. Jonathan Greenert receives a system update brief in the combat information center aboard the Arleigh Burke-class guided-missile

U.S. Navy Contracts 12 Rapid Response Skimmers

Kvichak Marine won a US Navy contract for 12 30-ft.Rapid Response Skimmers (RRS) for delivery over the next 18 months, with options for up to 30 additional skimmers to be delivered through 2019.

Finance

Areva-Siemens Raises Claim Over Finnish Reactor Delays

The French-German consortium Areva-Siemens , the supplier of Finland's much-delayed Olkiluoto-3 nuclear reactor, has increased its claim against Finnish utility Teollisuuden Voima (TVO),

Ezra Bags $70m in Offshore Contracts

Ezra Holdings Limited, a leading contractor and provider of integrated offshore solutions to the oil and gas industry, today announced that the Group’s Subsea Services division,

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

News

Decade Old India Shipping Summit Makes History

In ten years, India Shipping Summit held consistently in Mumbai, has sailed on a robust growth course despite the worldwide witnessing recessionary waves buffeting any endeavors to grow and gain.

USCG to Ensure Safety During World Series

The Coast Guard and local agencies are working to ensure the safety of boaters and baseball fans during World Series games at AT&T Park this weekend. The

Areva-Siemens Raises Claim Over Finnish Reactor Delays

The French-German consortium Areva-Siemens , the supplier of Finland's much-delayed Olkiluoto-3 nuclear reactor, has increased its claim against Finnish utility Teollisuuden Voima (TVO),

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1341 sec (7 req/sec)