Merchant Navy officer pensioners and their dependants in Kent have been assured that their payments are safe following changes.

There are around 1,500 retired officers in Kent among a worldwide membership of 50,000 in the Merchant Navy Officers Pension Fund (MNOPF).

Many worked for cross-Channel ferries. Members were told recently at a meeting in Dover that £680 million of pension benefits dating from the original scheme that began in 1937 and closed in 1978 had been secured by purchasing a bulk annuity insurance policy with Rothesay Life.

The purchase was set against challenging times for pension funds. “What we’re trying to do as a fund is to safeguard the pensions of all concerned by a de-risking strategy,” said chairman Peter McEwen. “We’ve had various meetings around the country, including the Ramada at Whitfield to explain what’s happening.”

The MNOPF is an industry-wide pension scheme established in 1937 to allow shipping companies to provide retirement and death benefits for their officers.

He said much had changed in the shipping industry since then, with many companies no longer in existence. A new scheme had been started in 1978. The fund was broadly in balance with assets of £3.6bn that had allowed it to buy insurance policies. “Going down the insurance road is much safer for pensioners,” Mr McEwen said. “Insurance companies are very strictly controlled.” The scheme was now fully funded.

Mr McEwen added: “The merchant navy is still very important in Kent, bringing 90% of everything into the UK and quite a lot to Dover.”

But pensioners had “nothing to worry about. We are safeguarding their pensions, we are removing as many risks as we can by using the insurance route which is well protected, well regulated and has good funding so we are able to cement their existing pension rights with an insurance policy. That’s good news for pensioners.”