Urenco UK Ltd.v Urenco UK Pension Trustee Company Ltd & Anor

Urenco UK Ltd.v Urenco UK Pension Trustee Company Ltd & Anor

The statutory protection under Part 4 Schedule 8 Energy Act 2004 requires that, for the Transferred Employees, the Scheme’s power of amendment cannot be exercised to reduce future service benefits below those provided by the CPS as at the transfer date, ignoring the CPS’s power of amendment. The SPA and Undertakings reinforce this protection. The proposed changes to increase contributions and reduce pension increases are not permissible.

Parties
Claimant: Urenco UK Limited; First Defendant: Urenco UK Pension Trustee Company Limited; Second Defendant: Francis Gregory Alleyne Mossop
Jurisdiction
England and Wales
Judgment Date
31 May 2012
Procedural Posture
Civil (part 8 Claim) / Judgment
Outcome
Claim dismissed; declaration granted in favour of the Defendants.
Legal Topics
Occupational Pension Schemes, Statutory Pension Protection, Scheme Amendment Powers, Transfer of Undertakings, Employee Benefits, Interpretation of Energy Act 2004, Effect of Undertakings and Certificates
Pensions Law Employment Law Contract Law Statutory Interpretation Occupational Pension Schemes Statutory Pension Protection Scheme Amendment Powers Transfer of Undertakings +3 more

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Parties

Urenco UK Limited

Claimant

Urenco UK Pension Trustee Company Limited

First Defendant

Francis Gregory Alleyne Mossop

Second Defendant

Procedural Posture

Civil (part 8 Claim) / Judgment

Legal Issues

  1. 1 Whether the Scheme’s power of amendment in relation to future service benefits of the Transferred Employees is constrained by Part 4 Schedule 8 Energy Act 2004, and if so, to what extent.
  2. 2 Whether the Scheme’s power of amendment is constrained by the Sale and Purchase Agreement (SPA) or the Undertaking.

Ratio Decidendi

The statutory protection under Part 4 Schedule 8 Energy Act 2004 requires that, for the Transferred Employees, the Scheme’s power of amendment cannot be exercised to reduce future service benefits below those provided by the CPS as at the transfer date, ignoring the CPS’s power of amendment. The SPA and Undertakings reinforce this protection. The proposed changes to increase contributions and reduce pension increases are not permissible.

Court Disposition

Claim dismissed; declaration granted in favour of the Defendants.

Orders

  • The power of amendment in the Scheme may not be exercised so as to vary detrimentally the future service benefits of the Transferred Employees.
  • The proposed changes to increase contributions and reduce pension increases for the Transferred Employees are not permissible.