Sarjeant & Ors v Rigid Group Ltd

Sarjeant & Ors v Rigid Group Ltd

The scheme rules do not expressly or impliedly restrict the trustees to a single-stage buy-out on winding-up. The rules are drafted to provide flexibility, and the absence of an express discharge provision for partial buy-outs does not preclude them. Trustees are empowered to effect staged buy-outs (Headway arrangements) to maximise the value of assets available for members, and are discharged pro tanto as benefits are secured. The appeal is dismissed.

Parties
Claimant/respondent: Roger Ivor Sarjeant; Claimant/respondent: Philip Howard Burditt; Claimant/respondent: Frank Holden; Defendant/appellant: Rigid Group Limited
Jurisdiction
England and Wales
Judgment Date
20 December 2013
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Interpretation of Pension Scheme Rules, Trustee Powers on Winding Up, Partial Buy Out Arrangements, Section 75 Pensions Act 1995 Debt, Scheme Asset Application
Pensions Law Trusts Law Contract Law Interpretation of Pension Scheme Rules Trustee Powers on Winding Up Partial Buy Out Arrangements Section 75 Pensions Act 1995 Debt Scheme Asset Application

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Parties

Roger Ivor Sarjeant

Claimant/respondent

Philip Howard Burditt

Claimant/respondent

Frank Holden

Claimant/respondent

Rigid Group Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the scheme rules permit trustees to effect a staged (partial) buy-out of members' entitlements on winding-up to maximise the section 75 debt recoverable from the employer

Ratio Decidendi

The scheme rules do not expressly or impliedly restrict the trustees to a single-stage buy-out on winding-up. The rules are drafted to provide flexibility, and the absence of an express discharge provision for partial buy-outs does not preclude them. Trustees are empowered to effect staged buy-outs (Headway arrangements) to maximise the value of assets available for members, and are discharged pro tanto as benefits are secured. The appeal is dismissed.

Court Disposition

Appeal dismissed

Orders

  • The appeal by Rigid Group Limited is dismissed.