Lloyds Banking Group Pensions Trustees Ltd v Lloyds Bank Plc & Ors [2018] EWHC 3343 (Ch) (06 December 2018)

Lloyds Banking Group Pensions Trustees Ltd v Lloyds Bank Plc & Ors [2018] EWHC 3343 (Ch) (06 December 2018)

Method D2 for GMP conversion does not require prior equalisation of benefits under Method C2; the actuary may determine the higher of the actuarial equivalents of the unequalised male and female pensions for the purposes of GMP conversion, and is not compelled to use the actuarial equivalent of the equalised pension.

Citation
[2018] EWHC 3343 (Ch)
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
06 December 2018
Procedural Posture
Chancery Division Business List / Post Judgment Consequential Hearing on Form of Order
Outcome
Order made as drafted without the requirement for prior equalisation under Method C2 for Method D2.
Legal Topics
GMP Equalisation, Pension Scheme Administration, Statutory Interpretation, Actuarial Calculation Methods
Pensions Law Trusts Law GMP Equalisation Pension Scheme Administration Statutory Interpretation Actuarial Calculation Methods

Case Brief

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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

Chancery Division Business List / Post Judgment Consequential Hearing on Form of Order

Legal Issues

  1. 1 Whether Method D2 for GMP conversion requires prior equalisation under Method C2
  2. 2 Whether actuary must use actuarial equivalent of equalised or unequalised pensions for Method D2

Ratio Decidendi

Method D2 for GMP conversion does not require prior equalisation of benefits under Method C2; the actuary may determine the higher of the actuarial equivalents of the unequalised male and female pensions for the purposes of GMP conversion, and is not compelled to use the actuarial equivalent of the equalised pension.

Court Disposition

Order made as drafted without the requirement for prior equalisation under Method C2 for Method D2.

Orders

  • Declaration that Method D2 is a lawful method to which the Banks could consent, without requiring prior equalisation under Method C2.
  • Actuary permitted to determine the higher of the actuarial equivalents of the unequalised male and female pensions for GMP conversion.