Hogan Lovells advised the Trustees on this project
The Secretary of State for Defence has executed a Crown Guarantee in favour of the Trustees of the NAAFI Pension Fund (the “Trustees” and the “Fund”).
The Fund’s employer is the Navy, Army and Air Force Institutes (“NAAFI”), which was established in 1921 to provide services (principally catering and retail) to Crown Forces serving in the UK and overseas. NAAFI personnel have played significant roles in the Second World War and British military operations since then, with over 500 NAAFI employees being killed in action.
The c.£500million Fund provides pension benefits to just under 6,000 former NAAFI employees. With the decline in NAAFI’s operations as British Forces are withdrawn from overseas bases, the Fund faced a very uncertain future.
Following a number of years’ negotiation, the Secretary of State for Defence has agreed to guarantee the Trustees’ obligations to pay benefits to members and the Fund’s expenses. The guarantee gives members the highest level of security that all their benefits will be paid.
The Hogan Lovells team was led by Edward Brown (Picture) supported by Jim Davis (Senior Associate), and with specialist public-law input from Charles Brasted (Partner) and Julia Marlow (Counsel).
Law Firms: Hogan Lovells;
Clients: NAAFI Pension Fund Trustees;