Barnardo's & Ors v Buckinghamshire & Ors [2016] EWCA Civ 1064 (02 November 2016)

Barnardo's & Ors v Buckinghamshire & Ors [2016] EWCA Civ 1064 (02 November 2016)

The definition of 'Retail Prices Index' in the 1988 rules does not confer a discretionary power on the trustees to substitute another index (such as CPI) for RPI unless the RPI has been officially replaced by the publishing authority. The natural and ordinary meaning of the rules, read as a whole and in context, requires that replacement of the RPI must be an external event, not a matter of trustee discretion. The appeal is dismissed; the trustees do not have the power to substitute another index in current circumstances.

Citation
[2016] EWCA Civ 1064
Parties
Appellants: Barnardo's & Ors; Respondents: Buckinghamshire & Ors; Intervener: Trustees
Jurisdiction
England and Wales
Judgment Date
02 November 2016
Procedural Posture
Appeal / Court of Appeal Judgment on Appeal From High Court (chancery Division)
Outcome
Appeal dismissed; cross-appeal dismissed.
Legal Topics
Interpretation of Pension Scheme Rules, Indexation of Pension Benefits, Statutory Construction, Modification of Occupational Pension Schemes, Section 67 Pensions Act 1995
Pensions Trusts Employment Contract Interpretation of Pension Scheme Rules Indexation of Pension Benefits Statutory Construction Modification of Occupational Pension Schemes +1 more

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Parties

Barnardo's & Ors

Appellants

Buckinghamshire & Ors

Respondents

Trustees

Intervener

Procedural Posture

Appeal / Court of Appeal Judgment on Appeal From High Court (chancery Division)

Legal Issues

  1. 1 Whether the trustees of the Barnardo's pension scheme have power under the 1988 rules to substitute the Consumer Prices Index (CPI) or another index for the Retail Prices Index (RPI) in calculating pension increases.
  2. 2 Whether the selection of a different index would constitute a 'detrimental modification' under section 67 of the Pensions Act 1995.

Ratio Decidendi

The definition of 'Retail Prices Index' in the 1988 rules does not confer a discretionary power on the trustees to substitute another index (such as CPI) for RPI unless the RPI has been officially replaced by the publishing authority. The natural and ordinary meaning of the rules, read as a whole and in context, requires that replacement of the RPI must be an external event, not a matter of trustee discretion. The appeal is dismissed; the trustees do not have the power to substitute another index in current circumstances.

Court Disposition

Appeal dismissed; cross-appeal dismissed.

Orders

  • The appeal by Barnardo's is dismissed.
  • The cross-appeal on section 67 Pensions Act 1995 is dismissed.