Update regarding the dispute with MFG Services

Update regarding the dispute with MFG Services

The JSAs have now received notice from the Supreme Court advising that the JSAs’ permission to appeal has been refused.

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As previously reported, based on the legal analysis received, the JSAs applied earlier this year to the Supreme Court for permission to appeal the Court of Appeal decision regarding a dispute with MFG Services relating to the final apportionment of the pension liability between MFGUK and MFG Services. The JSAs have now received notice from the Supreme Court advising that the JSAs’ permission to appeal has been refused. The JSAs have no further routes for disputing this claim and instead shall now work with MFG Services to finalise and admit their claim and make payment of the catch up distribution.

The Supreme Court’s decision does not impact the current level of distributions declared by the JSAs nor the Low Case scenario in the illustrative financial outcome statement. However, a net amount of £7 million was being recognised as an asset in the High Case scenario in the 31 March 2016 adjusted illustrative financial outcome statement on the basis of the JSAs receiving a successful Court decision on the dispute. The decision results in this £7 million asset no longer being recoverable and therefore the illustrative surplus of £61 million estimated as at March 2016 would be reduced to an illustrative surplus of £54 million.

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