South Tyneside Metropolitan Borough Council, R (on the application of) v The Lord Chancellor & Anor [2007] EWHC 2984 (Admin) (14 December 2007)

South Tyneside Metropolitan Borough Council, R (on the application of) v The Lord Chancellor & Anor [2007] EWHC 2984 (Admin) (14 December 2007)

Regulation 79 must be interpreted to impose liability on employers to contribute to the pension fund in respect of former employees who are deferred members or pensioners, not only current active members. The interpretation advanced by the Claimant is reasonable, removes injustice, and aligns with the legislative purpose of spreading pension liability equitably among employers.

Citation
[2007] EWHC 2984 (Admin)
Parties
Claimant: South Tyneside Metropolitan Borough Council; First Defendant: The Lord Chancellor and Secretary of State for Justice; Second Defendant: The Secretary of State for Communities and Local Government
Jurisdiction
England and Wales
Judgment Date
14 December 2007
Procedural Posture
Judicial Review / Final Judgment
Outcome
Judgment for the Claimant
Legal Topics
Local Government Pension Scheme, Employer Contribution Liability, Interpretation of Pension Regulations
Administrative Law Pensions Law Statutory Interpretation Local Government Pension Scheme Employer Contribution Liability Interpretation of Pension Regulations

Case Brief

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Parties

South Tyneside Metropolitan Borough Council

Claimant

The Lord Chancellor and Secretary of State for Justice

First Defendant

The Secretary of State for Communities and Local Government

Second Defendant

Procedural Posture

Judicial Review / Final Judgment

Legal Issues

  1. 1 Whether Regulation 79 of the Local Government Pension Scheme Regulations 1997 imposes liability on an employer to make contributions in respect of former employees who are deferred members or pensioners
  2. 2 Proper interpretation of 'employing authority' under the Regulations

Ratio Decidendi

Regulation 79 must be interpreted to impose liability on employers to contribute to the pension fund in respect of former employees who are deferred members or pensioners, not only current active members. The interpretation advanced by the Claimant is reasonable, removes injustice, and aligns with the legislative purpose of spreading pension liability equitably among employers.

Court Disposition

Judgment for the Claimant

Orders

  • First Defendant is liable to pay £214,000 to the Tyne and Wear Pension Fund
  • Declaration as to the true meaning of Regulation 79 to be made unless parties indicate otherwise