CLOSURE OF THE FUND

Following a court hearing in December 2000, the restructuring proposals put forward by the MNRPF Trustees were implemented and the MNRPF was closed to the further accrual of pension on 31 May 2001.

The proposals included the establishment of a new defined contributions scheme (the Merchant Navy Ratings Pension Plan - "MNRPP") to which active (as at the closure date) members of the MNRPF and their employers could contribute after 31 May 2001. The MNRPP was established with effect from 1 June 2001. It is entirely separate to the MNRPF and has a separate trustee company and administrators.

If you were contributing to the Fund at the date of closure you received an announcement which fully described how the closure affected your benefits and the options available in relation to continuing revaluation of your benefits in line with Section 148 Orders or increases in the Retail Prices Index ("RPI") up to a maximum of 7% in any year (LPI7).

The revaluation rate applying was notified on your benefit statement. If your circumstances change and you are in any doubt as to your continuing entitlement, please contact MNPA.

The effect on members who were either pensioners or deferred members at the closure date is as follows:

• Pensioners - you continue to receive your pension from the MNRPF as before closure
• Deferred members - your benefit accrued under the MNRPF will continue to be revalued (at the rate of revaluation applicable to members who have left the MNRPF) up to retirement as before closure.