Britvic Plc v Britvic Pensions Ltd & Anor [2020] EWHC 118 (Ch) (17 January 2020)

Britvic Plc v Britvic Pensions Ltd & Anor [2020] EWHC 118 (Ch) (17 January 2020)

The phrase 'any other rate decided by the Principal Employer' in the pension increase rule confers a power on the employer to substitute any rate, whether higher or lower than the default RPI-capped rate, subject to statutory minima. The power is not limited to increases. The employer may set different rates for different tranches of service, may set the rate by reference to an alternative index (such as CPI), and may set the rate at or near zero, provided statutory minima are observed. The same construction applies to both the 2003 and 2007 Trust Deed and Rules. The court's declarations are made without prejudice to any other claims (e.g., rectification, estoppel, or validity challenges)...

Citation
[2020] EWHC 118 (Ch)
Parties
Claimant: Britvic Plc; First Defendant: Britvic Pensions Limited; Second Defendant / Representative Beneficiary: Simon Richard Mohun
Jurisdiction
England and Wales
Judgment Date
17 January 2020
Procedural Posture
Part 8 Claim (construction of Pension Scheme Rules) / Substantive Hearing and Judgment
Outcome
Declarations granted (with caveats) as to the construction of the pension increase and revaluation rules in favour of the employer's interpretation.
Legal Topics
Interpretation of Pension Scheme Rules, Power to Alter Pension Increase Rates, Statutory Minimum Pension Increases, Revaluation of Deferred Pensions, Trustee Neutrality, Representative Beneficiary Appointment
Pensions Trusts Employment Interpretation of Pension Scheme Rules Power to Alter Pension Increase Rates Statutory Minimum Pension Increases Revaluation of Deferred Pensions Trustee Neutrality +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 17 Party arguments 2
Sign in to unlock

Parties

Britvic Plc

Claimant

Britvic Pensions Limited

First Defendant

Simon Richard Mohun

Second Defendant / Representative Beneficiary

Procedural Posture

Part 8 Claim (construction of Pension Scheme Rules) / Substantive Hearing and Judgment

Legal Issues

  1. 1 Whether the employer's alteration power under the Britvic Pension Plan rules allows substitution of a lower as well as a higher rate for pension increases
  2. 2 Whether different rates may be set for different tranches of service
  3. 3 Whether the employer may set the rate by reference to an alternative index (e.g. CPI)

Ratio Decidendi

The phrase 'any other rate decided by the Principal Employer' in the pension increase rule confers a power on the employer to substitute any rate, whether higher or lower than the default RPI-capped rate, subject to statutory minima. The power is not limited to increases. The employer may set different rates for different tranches of service, may set the rate by reference to an alternative index (such as CPI), and may set the rate at or near zero, provided statutory minima are observed. The same construction applies to both the 2003 and 2007 Trust Deed and Rules. The court's declarations are made without prejudice to any other claims (e.g., rectification, estoppel, or validity challenges)...

Court Disposition

Declarations granted (with caveats) as to the construction of the pension increase and revaluation rules in favour of the employer's interpretation.

Orders

  • It is declared that, on the proper construction of rules C10(2) and/or C2(2) of the 2003 and 2007 Trust Deed and Rules (as amended), those rules as currently formulated confer a power on the company (subject to statutory minima) to substitute any rate (higher or lower) for pension increases, to set different rates...
  • Declarations are made without prejudice to any other claims or arguments (including rectification, estoppel, or validity challenges).