Bridge Trustees Ltd v Yates & Ors [2008] EWHC 964 (Ch) (01 May 2008)

Bridge Trustees Ltd v Yates & Ors [2008] EWHC 964 (Ch) (01 May 2008)

Benefits derived from MoneyMatch and VIP Interests under the Scheme are 'money purchase benefits' within the statutory definition, except where subject to the 1983 Guarantee or Guaranteed Minimum Pension (GMP) underpin, in which case only the excess over the underpin is a money purchase benefit. Such benefits are excluded from section 73 by regulation 13, except for those derived from voluntary contributions or which are underpin benefits. Pensions in payment at the date of winding up, derived from MoneyMatch or VIP Interests, are not within section 73(3)(b) and remain money purchase benefits. Employer credits are not voluntary contributions for section 73(3)(a).

Citation
[2008] EWHC 964 (Ch)
Parties
Claimant: Bridge Trustees Limited; First Defendant: John Yates; Second Defendant: Mark Houldsworth; Third Defendant: John Hunter
Jurisdiction
England and Wales
Judgment Date
01 May 2008
Procedural Posture
Pension Scheme Construction and Winding Up / First Instance Judgment
Outcome
Declaratory judgment granted in favour of the Claimant's construction, with orders approving the Trustee's decision regarding voluntary contributions, except for employer credits.
Legal Topics
Money Purchase Benefits, Hybrid Pension Schemes, Section 73 Pensions Act 1995, Occupational Pension Schemes (winding Up) Regulations 1996, Priority of Pension Scheme Liabilities, Voluntary Contributions, Guaranteed Minimum Pension (gmp), Internal Annuitisation, Scheme Winding Up
Pensions Law Trusts Law Money Purchase Benefits Hybrid Pension Schemes Section 73 Pensions Act 1995 Occupational Pension Schemes (winding Up) Regulations 1996 Priority of Pension Scheme Liabilities Voluntary Contributions +3 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 8 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Bridge Trustees Limited

Claimant

John Yates

First Defendant

Mark Houldsworth

Second Defendant

John Hunter

Third Defendant

Procedural Posture

Pension Scheme Construction and Winding Up / First Instance Judgment

Legal Issues

  1. 1 Whether benefits derived from MoneyMatch and VIP Interests under the Scheme constitute 'money purchase benefits' as defined by section 181 Pension Schemes Act 1993.
  2. 2 Whether such benefits, if money purchase, are excluded from section 73 Pensions Act 1995 by regulation 13 of the Occupational Pension Schemes (Winding Up) Regulations 1996.
  3. 3 Whether pensions in payment at the date of winding up, derived from MoneyMatch or VIP Interests, fall within section 73(3)(b).

Ratio Decidendi

Benefits derived from MoneyMatch and VIP Interests under the Scheme are 'money purchase benefits' within the statutory definition, except where subject to the 1983 Guarantee or Guaranteed Minimum Pension (GMP) underpin, in which case only the excess over the underpin is a money purchase benefit. Such benefits are excluded from section 73 by regulation 13, except for those derived from voluntary contributions or which are underpin benefits. Pensions in payment at the date of winding up, derived from MoneyMatch or VIP Interests, are not within section 73(3)(b) and remain money purchase benefits. Employer credits are not voluntary contributions for section 73(3)(a).

Court Disposition

Declaratory judgment granted in favour of the Claimant's construction, with orders approving the Trustee's decision regarding voluntary contributions, except for employer credits.

Orders

  • It is declared that benefits derived from MoneyMatch and VIP Interests are money purchase benefits except to the extent of any underpin (GMP or 1983 Guarantee).
  • Such benefits are excluded from section 73 Pensions Act 1995 by regulation 13, except for voluntary contributions and underpin benefits.