Lloyds Banking Group Pensions Trustees Ltd v Lloyds Bank PLC & Ors [2020] EWHC 3135 (Ch) (20 November 2020)

Lloyds Banking Group Pensions Trustees Ltd v Lloyds Bank PLC & Ors [2020] EWHC 3135 (Ch) (20 November 2020)

The Trustee's obligation to equalise benefits applies to transfers out where the cash equivalent was calculated without equalisation. The Trustee is not automatically discharged from liability for underpayments unless statutory discharge provisions, scheme rules, or member agreements expressly apply. Remedies include top-up payments to receiving schemes or members, calculated using assumptions at the original transfer date, with interest. Limitation periods and forfeiture provisions may restrict arrears claims, but do not extinguish the underlying obligation unless properly invoked.

Citation
[2020] EWHC 3135 (Ch)
Parties
Claimant: Lloyds Banking Group Pensions Trustees Limited; First Defendant: Lloyds Bank PLC; Second Defendant: HBOS PLC; Sixth Defendant: Secretary of State for Work and Pensions; Eighth Defendant: Ivan Walker
Jurisdiction
England and Wales
Judgment Date
20 November 2020
Procedural Posture
Chancery Division Business List / Final Judgment on Outstanding Issues Following Earlier Judgment and Supplemental Order
Outcome
Declaratory judgment clarifying Trustee obligations and remedies for inadequate transfer payments; partial relief granted to Claimant, subject to statutory and scheme limitations.
Legal Topics
GMP Equalisation, Transfer Values, Statutory Discharge, Limitation Periods, Scheme Rules, EU Law, Domestic Legislation, Arrears, Top Up Payments
Pensions Trusts Employment Equality GMP Equalisation Transfer Values Statutory Discharge Limitation Periods +5 more

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Parties

Lloyds Banking Group Pensions Trustees Limited

Claimant

Lloyds Bank PLC

First Defendant

HBOS PLC

Second Defendant

Secretary of State for Work and Pensions

Sixth Defendant

Ivan Walker

Eighth Defendant

Procedural Posture

Chancery Division Business List / Final Judgment on Outstanding Issues Following Earlier Judgment and Supplemental Order

Legal Issues

  1. 1 Does the Trustee's GMP equalisation obligation apply to transfers out to various types of receiving schemes?
  2. 2 What remedies are available for inadequate transfer payments?
  3. 3 Is the Trustee discharged from liability under section 99 PSA 1993 and related provisions?

Ratio Decidendi

The Trustee's obligation to equalise benefits applies to transfers out where the cash equivalent was calculated without equalisation. The Trustee is not automatically discharged from liability for underpayments unless statutory discharge provisions, scheme rules, or member agreements expressly apply. Remedies include top-up payments to receiving schemes or members, calculated using assumptions at the original transfer date, with interest. Limitation periods and forfeiture provisions may restrict arrears claims, but do not extinguish the underlying obligation unless properly invoked.

Court Disposition

Declaratory judgment clarifying Trustee obligations and remedies for inadequate transfer payments; partial relief granted to Claimant, subject to statutory and scheme limitations.

Orders

  • Trustee must remedy historic underpayments by making top-up payments to receiving schemes or members where not discharged by statute, scheme rules, or member agreement.
  • Top-up payments to be calculated using financial and demographic assumptions current at the original transfer date, with interest added as prescribed.