Universities Superannuation Scheme Ltd v Simpson & Ors

Universities Superannuation Scheme Ltd v Simpson & Ors

The normal pension age relevant for preserved benefits must be determined by reference to the individual member's contractual retirement age, not a uniform scheme age; actuarial reduction cannot be applied where the member was entitled to retire at that age under their terms of employment.

Parties
Claimant: Universities Superannuation Scheme Limited; First Defendant: Keith Simpson; Second Defendant: Jane McAdoo; Third Defendant: University of London
Jurisdiction
England and Wales
Judgment Date
29 April 2004
Procedural Posture
Civil / Judgment
Outcome
Claim allowed
Legal Topics
Occupational Pension Schemes, Preservation of Benefits, Actuarial Reduction, Contractual Retirement Age, Statutory Interpretation
Pensions Employment Trusts Occupational Pension Schemes Preservation of Benefits Actuarial Reduction Contractual Retirement Age Statutory Interpretation

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Parties

Universities Superannuation Scheme Limited

Claimant

Keith Simpson

First Defendant

Jane McAdoo

Second Defendant

University of London

Third Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the trustee may apply an actuarial reduction to preserved pension benefits brought into payment at a member's contractual retirement age below the scheme's normal retirement age
  2. 2 Interpretation of 'normal pension age' under section 180(1)(b) of the Pension Schemes Act 1993

Ratio Decidendi

The normal pension age relevant for preserved benefits must be determined by reference to the individual member's contractual retirement age, not a uniform scheme age; actuarial reduction cannot be applied where the member was entitled to retire at that age under their terms of employment.

Court Disposition

Claim allowed

Orders

  • Trustee may not apply actuarial reduction to preserved benefits brought into payment at a member's contractual retirement age if that age is not less than 60 and less than the scheme's normal retirement age.
  • Same applies for calculation of cash equivalent transfer values.