Sarjeant & Ors v Rigid Group Ltd [2013] EWCA Civ 1714 (20 December 2013)

Sarjeant & Ors v Rigid Group Ltd [2013] EWCA Civ 1714 (20 December 2013)

The rules of the pension schemes, specifically Rule 21C, do not require the buy-out of members' entitlements to be effected as a single operation. The trustees are empowered by implication to carry out a staged (partial) buy-out if it best enables them to fulfil their duty to provide benefits as nearly as practicable equivalent to scheme entitlements. The absence of an express discharge provision for partial buy-outs does not preclude such arrangements. The appeal is dismissed.

Citation
[2013] EWCA Civ 1714
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
Appeal / Court of Appeal Judgment on Appeal From High Court (chancery Division)
Outcome
Appeal dismissed
Legal Topics
Occupational Pension Schemes, Scheme Winding Up, Trustee Powers, Section 75 Pensions Act 1995 Debt, Partial Buy Out Arrangements, Interpretation of Pension Scheme Rules
Pensions Trusts and Equity Employment Law Occupational Pension Schemes Scheme Winding Up Trustee Powers Section 75 Pensions Act 1995 Debt Partial Buy Out Arrangements +1 more

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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

Appeal / Court of Appeal Judgment on Appeal From High Court (chancery Division)

Legal Issues

  1. 1 Whether the trustees of the pension schemes have power under the scheme rules to effect a staged (partial) buy-out of members' entitlements as part of a Headway arrangement during winding-up.

Ratio Decidendi

The rules of the pension schemes, specifically Rule 21C, do not require the buy-out of members' entitlements to be effected as a single operation. The trustees are empowered by implication to carry out a staged (partial) buy-out if it best enables them to fulfil their duty to provide benefits as nearly as practicable equivalent to scheme entitlements. The absence of an express discharge provision for partial buy-outs does not preclude such arrangements. The appeal is dismissed.

Court Disposition

Appeal dismissed

Orders

  • The appeal by Rigid Group Limited is dismissed.