Lloyds Banking Group Pensions Trustees Ltd v Lloyds Bank Plc & Ors

Lloyds Banking Group Pensions Trustees Ltd v Lloyds Bank Plc & Ors

The trustee is legally obliged to equalise benefits for the effect of unequal GMPs between men and women for service between 17 May 1990 and 5 April 1997. The obligation arises under Article 157 TFEU and section 67 Equality Act 2010. The only legally permissible methods are those that achieve equalisation with minimum interference to the rights of employers and beneficiaries; method C2 (year-by-year comparison with interest at 1% over base rate) is required. Back-payments must be made for all underpayments, subject only to any valid scheme forfeiture rules, and are not subject to a statutory limitation period. Interest is payable at 1% over base rate, simple interest. The statutory GMP...

Parties
Claimant: Lloyds Banking Group Pensions Trustees Limited; First Defendant: Lloyds Bank PLC; Second Defendant: HBOS PLC; Third Defendant: Angela Sharp; Fourth Defendant: Judith Cain; Fifth Defendant: Susan Dixon; Sixth Defendant: Secretary of State for Work and Pensions; Seventh Defendant: Her Majesty’s Treasury
Jurisdiction
England and Wales
Judgment Date
26 October 2018
Procedural Posture
Civil (pensions/trusts, Part 8 Claim) / Judgment After Trial of Preliminary Issues
Outcome
Claim allowed in part; declaration of obligation to equalise benefits for the effect of unequal GMPs; directions as to method and period for back-payments and interest.
Legal Topics
GMP Equalisation, Sex Discrimination in Occupational Pensions, Trustee Powers and Duties, Limitation Periods in Pension Claims, Interest on Arrears, Principle of Minimum Interference, Implementation of EU Law in Domestic Schemes
Pensions Law Equality and Discrimination Law Trust Law European Union Law GMP Equalisation Sex Discrimination in Occupational Pensions Trustee Powers and Duties Limitation Periods in Pension Claims +3 more

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Parties

Lloyds Banking Group Pensions Trustees Limited

Claimant

Lloyds Bank PLC

First Defendant

HBOS PLC

Second Defendant

Angela Sharp

Third Defendant

Judith Cain

Fourth Defendant

Susan Dixon

Fifth Defendant

Secretary of State for Work and Pensions

Sixth Defendant

Her Majesty’s Treasury

Seventh Defendant

Procedural Posture

Civil (pensions/trusts, Part 8 Claim) / Judgment After Trial of Preliminary Issues

Legal Issues

  1. 1 Is there a legal obligation to equalise benefits for the effect of unequal GMPs between men and women in occupational pension schemes?
  2. 2 What method(s) of equalisation are legally permissible or required?
  3. 3 What is the period for which back-payments must be made and is there a limitation period?

Ratio Decidendi

The trustee is legally obliged to equalise benefits for the effect of unequal GMPs between men and women for service between 17 May 1990 and 5 April 1997. The obligation arises under Article 157 TFEU and section 67 Equality Act 2010. The only legally permissible methods are those that achieve equalisation with minimum interference to the rights of employers and beneficiaries; method C2 (year-by-year comparison with interest at 1% over base rate) is required. Back-payments must be made for all underpayments, subject only to any valid scheme forfeiture rules, and are not subject to a statutory limitation period. Interest is payable at 1% over base rate, simple interest. The statutory GMP...

Court Disposition

Claim allowed in part; declaration of obligation to equalise benefits for the effect of unequal GMPs; directions as to method and period for back-payments and interest.

Orders

  • Trustee to amend the Schemes to equalise benefits for the effect of unequal GMPs for service between 17 May 1990 and 5 April 1997.
  • Trustee to adopt method C2 (year-by-year comparison with interest at 1% over base rate, simple interest) for equalisation.