This note explains changes to the Trustee’s board of directors (the Board).

As you may know from newsletters the Board has, for some time, been constituted as follows: three independent directors being Roger Barrs (Chairman), Keith Manktelow (who is also a pensioner), and Noel Kelly (an investment specialist) and two member nominated directors being Jonathan Bregazzi and Giles Ainley. This team has worked very well together for some years. However, as was recently communicated to you, the insolvency and subsequent administration of Flybe Limited (Flybe) has resulted in the Scheme commencing winding up. Both Flybe’s administration, and the triggering of the Scheme’s winding up as a consequence of that administration, have obliged the Board to reassess the way it is constituted and to make some changes.

Member nominated directors (MNDs): as noted above, Jonathan and Giles have previously been elected by the Scheme’s membership to act as MNDs and have served the membership and Trustee extremely diligently and professionally in that regard. We would like to take this opportunity to thank them for their years of service and the commitment they showed to the Scheme throughout that period. However, as you are probably aware, Jonathan and Giles were both Flybe employees and have now also lost their jobs.  As with all Flybe staff, they are now engaged in the process of looking for new work.

At the same time, the triggering of the Scheme’s winding up has meant that the burden of running the Scheme and the time commitment that this brings, has increased considerably. This has meant many more Trustee meetings than would usually be the case. To maintain the integrity of the Scheme as an Isle of Man trust (in order to avoid adverse tax consequences for the Scheme), the participants of these meetings must be reside in the Isle of Man during the meeting which has meant it has not been possible for Jonathan and Giles (as UK residents) to actively participate in the Scheme’s decision making during the Covid crisis. The collective consequence of these various circumstances has meant that Jonathan and Giles have decided to step down from the Board (effective 15 May 2020), so that they can focus on future employment opportunities and life after Flybe.  The remaining directors fully understand their reasons for doing so and are extremely grateful for the time and effort that they have put in over the years.  We wish them all the best for the future.

Investment profile: as noted above, Noel became a director 1 January 2018 to enhance the Board’s investment expertise.  In that regard, Noel has played a key role in helping the Board formulate its investment strategy with its professional investment advisers. In particular, Noel most recently assisted the Scheme with the re-structuring of its investments when the future of Flybe was thrown into doubt before its acquisition by Connect Airways Limited.  Noel, a seasoned investment professional and, along with the Scheme’s investment consultants (Mercer) helped the Scheme implement a de-risked strategy that has helped the Scheme withstand the downturn resulting from the Covid pandemic. However, now that the Scheme has entered winding up and having implemented a low risk investment strategy, the need for Noel’s skills has diminished as the Scheme is no longer going to run its investments on in the medium to long term, and will now switch its focus to securing your benefits with insurers. Accordingly, Noel has also decided to resign from the Board with effect from 30 June 2020. The Scheme does, of course, continue to retain the services of Mercer as its investment consultant. Again, the Trustee would like to thank Noel on behalf of the Scheme for the diligence and professionalism with which he undertook his role on the Board.

Winding up: as noted above, the Scheme is now in winding up and has entered one of the most technically complex phases of its lifecycle. To strengthen the Trustee’s expertise during the winding-up process, the Board has appointed Mark Kiernan with effect from 1 May 2020. Mark is the Chief Executive of Isle of Man based actuarial firm Boal & Co and has been working for the Scheme since 2007 when Boal & Co were appointed to provide secretarial services to the Scheme. He therefore has an in-depth understanding of how the Scheme operates. In addition, Mark has been a professional pension trustee for over 20 years, holds a number of independent trustee roles for large Isle of Man employers and has unique experience in the Isle of Man of overseeing the insolvent winding up of occupational pension schemes.  In addition, he is trustee to over 100 international pension plans, which includes over 20 Fortune 500 companies.

Both the Isle of Man and UK pension regulators have been notified of his appointment.

Mark's details along with the details of the trustee board can be found in the Trustee section.

If any members have any queries regarding these changes, please feel free to contact any member of the Board.