Virgin Media Ltd v NTL Pension Trustees II Ltd & Ors

Virgin Media Ltd v NTL Pension Trustees II Ltd & Ors

The Court held that 'section 9(2B) rights' in Regulation 42 of the Contracting-out Regulations 1996 includes both past service and future service rights. Therefore, any amendment to the rules of a salary-related contracted-out scheme affecting benefits to be earned by future service required the written confirmation of the scheme actuary that the scheme would continue to satisfy the statutory standard. The legislative purpose, statutory context, and regulatory scheme all supported this interpretation, and the contrary construction would undermine the statutory protection for scheme members.

Parties
Claimant / Appellant: Virgin Media Ltd; 1st Defendant / Respondent: NTL Pension Trustees II Ltd; 2nd Defendant / Respondent: Ross Russell Ltd; 3rd Defendant / Respondent: John Jardine
Jurisdiction
England and Wales
Judgment Date
25 July 2024
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal dismissed
Legal Topics
Contracting Out of Occupational Pension Schemes, Statutory Construction, Amendment of Pension Scheme Rules, Role of Scheme Actuary, Section 37 Pension Schemes Act 1993, Regulation 42 Occupational Pension Schemes (contracting Out) Regulations 1996
Pensions Law Statutory Interpretation Contracting Out of Occupational Pension Schemes Statutory Construction Amendment of Pension Scheme Rules Role of Scheme Actuary Section 37 Pension Schemes Act 1993 Regulation 42 Occupational Pension Schemes (contracting Out) Regulations 1996

Case Brief

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Parties

Virgin Media Ltd

Claimant / Appellant

NTL Pension Trustees II Ltd

1st Defendant / Respondent

Ross Russell Ltd

2nd Defendant / Respondent

John Jardine

3rd Defendant / Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether 'section 9(2B) rights' in Regulation 42 of the Contracting-out Regulations 1996 includes both past service and future service rights for the purpose of requiring actuarial confirmation before amending scheme rules.
  2. 2 Whether amendments to pension scheme rules affecting future service benefits required the scheme actuary's confirmation under s.37 PSA 1993 and reg 42.

Ratio Decidendi

The Court held that 'section 9(2B) rights' in Regulation 42 of the Contracting-out Regulations 1996 includes both past service and future service rights. Therefore, any amendment to the rules of a salary-related contracted-out scheme affecting benefits to be earned by future service required the written confirmation of the scheme actuary that the scheme would continue to satisfy the statutory standard. The legislative purpose, statutory context, and regulatory scheme all supported this interpretation, and the contrary construction would undermine the statutory protection for scheme members.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.
  • The High Court's order is affirmed.