Britvic Plc v Britvic Pensions Ltd & Anor [2021] EWCA Civ 867 (10 June 2021)

Britvic Plc v Britvic Pensions Ltd & Anor [2021] EWCA Civ 867 (10 June 2021)

The words 'or any other rate decided by the Principal Employer' in Rule C.10(2) are clear and unambiguous, permitting the employer to set a rate of increase that is higher or lower than the default capped RPI rate. There is no basis for reading 'any other rate' as 'any higher rate' or for applying corrective construction, as there is no clear mistake or obvious correction. The employer's discretion under Rule C.10(2) can be exercised for different periods of service, for more than one year, and allows for a 0% increase. The discretion also applies to deferred pensions under Rule C.2(2).

Citation
[2021] EWCA Civ 867
Parties
Claimant/appellant: Britvic PLC; Defendant/respondent (trustee): Britvic Pensions Limited; Defendant/respondent (representative Member): Simon Richard Mohun
Jurisdiction
England and Wales
Judgment Date
10 June 2021
Procedural Posture
Appeal (civil) / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal allowed on all grounds
Legal Topics
Interpretation of Pension Scheme Rules, Corrective Construction, Statutory Pension Increase Requirements, Employer Discretion in Pension Increases
Pensions Law Trusts Law Contract Law Interpretation of Pension Scheme Rules Corrective Construction Statutory Pension Increase Requirements Employer Discretion in Pension Increases

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Parties

Britvic PLC

Claimant/appellant

Britvic Pensions Limited

Defendant/respondent (trustee)

Simon Richard Mohun

Defendant/respondent (representative Member)

Procedural Posture

Appeal (civil) / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether 'any other rate decided by the Principal Employer' in Rule C.10(2) allows for higher or lower rates than the default capped RPI increase
  2. 2 Whether the employer's discretion under Rule C.10(2) can be exercised for different periods of service or for more than one year
  3. 3 Whether the discretion allows a 0% increase

Ratio Decidendi

The words 'or any other rate decided by the Principal Employer' in Rule C.10(2) are clear and unambiguous, permitting the employer to set a rate of increase that is higher or lower than the default capped RPI rate. There is no basis for reading 'any other rate' as 'any higher rate' or for applying corrective construction, as there is no clear mistake or obvious correction. The employer's discretion under Rule C.10(2) can be exercised for different periods of service, for more than one year, and allows for a 0% increase. The discretion also applies to deferred pensions under Rule C.2(2).

Court Disposition

Appeal allowed on all grounds

Orders

  • Declaration that Rule C.10(2) allows the Principal Employer to set any rate of increase, higher or lower, including 0%
  • Declaration that the discretion can be exercised for different periods of service and for more than one year