AON Trust Corporation Ltd v KPMG & Ors

AON Trust Corporation Ltd v KPMG & Ors

Clause 8.5 allows reduction of pensions in payment and different reductions for different members; exercise of clause 8.5 constitutes a modification under s.67 Pensions Act 1995; the scheme is not a money purchase scheme as benefits are calculated by reference to average salary, not solely payments.

Parties
Claimant: Aon Trust Corporation Limited; 1st Defendant: KPMG; 2nd Defendant: Ruth Muir James; 3rd Defendant: Julian Walker
Jurisdiction
England and Wales
Judgment Date
29 July 2004
Procedural Posture
Part 8 Application / Judgment
Outcome
Declarations made in favour of Trustee's powers and scheme classification; representation orders granted; costs to be paid by KPMG; Question 5 adjourned.
Legal Topics
Money Purchase Schemes, Scheme Modification, Employer Liability, Actuarial Valuation, Scheme Deficit
Pensions Trusts Employment Money Purchase Schemes Scheme Modification Employer Liability Actuarial Valuation Scheme Deficit

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Parties

Aon Trust Corporation Limited

Claimant

KPMG

1st Defendant

Ruth Muir James

2nd Defendant

Julian Walker

3rd Defendant

Procedural Posture

Part 8 Application / Judgment

Legal Issues

  1. 1 Whether clause 8.5 allows reduction of pensions in payment
  2. 2 Whether clause 8.5 is a power to modify the scheme under s.67 Pensions Act 1995
  3. 3 Whether the scheme is a money purchase scheme under Pension Schemes Act 1993 and Pensions Act 1995

Ratio Decidendi

Clause 8.5 allows reduction of pensions in payment and different reductions for different members; exercise of clause 8.5 constitutes a modification under s.67 Pensions Act 1995; the scheme is not a money purchase scheme as benefits are calculated by reference to average salary, not solely payments.

Court Disposition

Declarations made in favour of Trustee's powers and scheme classification; representation orders granted; costs to be paid by KPMG; Question 5 adjourned.

Orders

  • Affirmative answers to Questions 1(i) and (ii)
  • Affirmative answer to Question 2