3i PLC v John Decesare & Ors

3i PLC v John Decesare & Ors

The fetter in the 3i Group Pension Plan rules, by its natural and ordinary meaning, protects only accrued rights or interests in respect of benefits already provided under the Plan, not future service benefits. The word 'accrued' qualifies both 'rights' and 'interests', and the phrase 'benefits already provided' is backward-looking. Therefore, amendments terminating or reducing future accrual of benefits, such as those made by the Closure Deed, were a valid exercise of the power of amendment and not precluded by the fetter.

Parties
Claimant: 3i PLC; First Defendant (representative Member): John Decesare; Second Defendant (trustee): Gardens Pension Trustees Limited; Third Defendant (trustee): The Law Debenture (1996) Pension Trust Corporation
Jurisdiction
England and Wales
Judgment Date
21 November 2025
Procedural Posture
Part 8 Claim (construction of Pension Scheme Amendment Power) / Judgment After Trial on Agreed Construction Issue
Outcome
Claim allowed. Declaration granted that the Closure Deed amendments were a valid exercise of the power of amendment and not precluded by the fetter.
Legal Topics
Interpretation of Pension Scheme Amendment Powers, Scope of Fetters on Amendment, Accrued Rights and Interests, Closure of Defined Benefit Pension Schemes, Distribution of Pension Scheme Surplus
Pensions Law Trusts Law Contract Law Interpretation of Pension Scheme Amendment Powers Scope of Fetters on Amendment Accrued Rights and Interests Closure of Defined Benefit Pension Schemes Distribution of Pension Scheme Surplus

Case Brief

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Parties

3i PLC

Claimant

John Decesare

First Defendant (representative Member)

Gardens Pension Trustees Limited

Second Defendant (trustee)

The Law Debenture (1996) Pension Trust Corporation

Third Defendant (trustee)

Procedural Posture

Part 8 Claim (construction of Pension Scheme Amendment Power) / Judgment After Trial on Agreed Construction Issue

Legal Issues

  1. 1 Whether the fetter in the 3i Group Pension Plan rules precludes amendments terminating or reducing future benefit accrual without member consent
  2. 2 Whether the Closure Deed validly closed the Plan to future accrual under the power of amendment

Ratio Decidendi

The fetter in the 3i Group Pension Plan rules, by its natural and ordinary meaning, protects only accrued rights or interests in respect of benefits already provided under the Plan, not future service benefits. The word 'accrued' qualifies both 'rights' and 'interests', and the phrase 'benefits already provided' is backward-looking. Therefore, amendments terminating or reducing future accrual of benefits, such as those made by the Closure Deed, were a valid exercise of the power of amendment and not precluded by the fetter.

Court Disposition

Claim allowed. Declaration granted that the Closure Deed amendments were a valid exercise of the power of amendment and not precluded by the fetter.

Orders

  • Parties to agree an order giving effect to the judgment.
  • If consequential matters require a hearing, arrangements to be made through the judge's clerk.