The Transport Act 2000 (Civil Aviation Authority Pension Scheme) Order 2001

18. LIABILITY OF TRUSTEES

18.1  No Trustee shall be liable for any actions claims or demands arising out of anything done or caused to be done or omitted by him in connection with the Scheme and costs arising therefrom, except for:

(a) an act or omission which he knew to be a breach of trust and which he knowingly and wilfully committed or omitted as the case may be; and

(b) an act or omission in respect of which a Trustee incurs a fine or penalty as referred to in section 31 of the Pensions Act 1995; and

(c) an act or omission for which liability in relation to the investment of the Fund cannot be excluded or restricted in accordance with section 33 of the Pensions Act 1995.

Trustee indemnity

18.2  Where any action, claim or demand arises in connection with one Section only out of anything done or caused to be done or omitted (whether by way of investment or otherwise) by the Trustees and the Secretary, and employees of the Employers acting under the instructions of the Trustees or the Secretary, those persons are indemnified by the Employers participating in that Section against such actions, claims or demands, and costs arising from them (except an act or omission which any such person knew to be a breach of trust and which he knowingly and wilfully committed or omitted, as the case may be). Such indemnity shall be in proportion to the values of the accrued interests of those Employers' employees who are Current Members and the Pensioners in that Section, or on another basis determined by the Trustees which would not prejudice approval of the Scheme under Chapter I of Part XIV of the Taxes Act.

18.3  Where any action, claim or demand arises in connection with more than one Sections out of anything done or caused to be done or omitted (whether by way of investment or otherwise) by the Trustees and the Secretary, and employees of the Employers acting under the instructions of the Trustees or the Secretary, those persons are indemnified by the Employers participating in those Sections against such actions, claims or demands, and costs arising from them (except an act or omission which any such person knew to be a breach of trust and which he knowingly and wilfully committed or omitted, as the case may be). Such indemnity shall be in proportion to the values of the accrued interests of those Employers' employees who are Current Members and the Pensioners in those Sections, or on another basis decided by the Trustees which would not prejudice approval of the Scheme under Chapter I of Part XIV of the Taxes Act.

18.4  To the extent that they are not indemnified by the Employers under Clause 18.2 or 18.3, any such person shall be indemnified out of the Section Assets of the relevant Section or Sections, but not in respect of acts or omissions referred to in paragraphs (a) to (c) in Clause 18.1 above.

18.5  The Trustees shall not be liable in respect of any payment to any person erroneously made by them in good faith in the belief (having regard to Rule 22) that the person was entitled to it. A receipt issued to the Trustees by any person for any payment made to such person shall be a good and sufficient discharge of the obligations of the Trustees.

18.6  The Trustees shall be liable only for such monies and assets as they shall actually receive and shall in no event be liable for any interest in respect of such monies or if the Section Assets of the relevant Section are insufficient to pay the benefits under that Section whether by reason of the contributions payable by Employers into the Section being insufficient or by reason of any Employer failing to pay the contributions or by reason of any loss or depreciation of any of the assets of the Scheme.

Trustee insurance

18.7  The Trustees shall have power to take out insurance against any loss caused by or arising out of any action, claim or demand made against any Trustee or former Trustee or any of their delegates or any officer or employee of a corporate trustee. The Trustees may also insure themselves and any of those persons against liability for breach of trust not involving the personal conscious wrongdoing or fraud of the person concerned. The premiums of any such insurance shall be treated as an expense of the Scheme, and dealt with in accordance with Clause 13.2, but subject to section 31 of the Pensions Act 1995.