Alexander Forbes Trustee Services Ltd v Clarke & Ors [2008] EWHC 153 (Ch) (05 February 2008)

Alexander Forbes Trustee Services Ltd v Clarke & Ors [2008] EWHC 153 (Ch) (05 February 2008)

Members over 50 who had left service and were entitled to deferred pensions, as well as members over 50 still in service but eligible for early retirement, are persons whose entitlement to payment of pension had arisen within the meaning of section 73(3)(b) of the Pensions Act 1995 at the winding up date, because they could unilaterally require payment of an actuarially reduced pension by taking steps wholly within their own power.

Citation
[2008] EWHC 153 (Ch)
Parties
Claimant: Alexander Forbes Trustee Services Ltd; First Defendant: Geoffrey Alan Clarke; Second Defendant: John Morgan Lewis; Third Defendant: Robert Frederick Unwin
Jurisdiction
England and Wales
Judgment Date
05 February 2008
Procedural Posture
Part 8 Claim / Judgment After Hearing
Outcome
Directions granted; entitlement to payment under section 73(3)(b) includes members over 50 with deferred pensions and those still in service but eligible for early retirement.
Legal Topics
Order of Priority in Winding Up Occupational Pension Schemes, Interpretation of Section 73 Pensions Act 1995, Entitlement to Payment of Pension, Actuarially Reduced Early Pensions, Scheme Rules and Statutory Priorities
Pensions Trusts Employment Order of Priority in Winding Up Occupational Pension Schemes Interpretation of Section 73 Pensions Act 1995 Entitlement to Payment of Pension Actuarially Reduced Early Pensions Scheme Rules and Statutory Priorities

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Parties

Alexander Forbes Trustee Services Ltd

Claimant

Geoffrey Alan Clarke

First Defendant

John Morgan Lewis

Second Defendant

Robert Frederick Unwin

Third Defendant

Procedural Posture

Part 8 Claim / Judgment After Hearing

Legal Issues

  1. 1 Whether members over 50 with deferred pensions who had not exercised early pension rights are entitled to priority under section 73(3)(b) of the Pensions Act 1995
  2. 2 Whether members over 50 still in service but eligible for early retirement are entitled to priority under section 73(3)(b)
  3. 3 Interpretation of 'entitlement to payment' under section 73(3)(b)

Ratio Decidendi

Members over 50 who had left service and were entitled to deferred pensions, as well as members over 50 still in service but eligible for early retirement, are persons whose entitlement to payment of pension had arisen within the meaning of section 73(3)(b) of the Pensions Act 1995 at the winding up date, because they could unilaterally require payment of an actuarially reduced pension by taking steps wholly within their own power.

Court Disposition

Directions granted; entitlement to payment under section 73(3)(b) includes members over 50 with deferred pensions and those still in service but eligible for early retirement.

Orders

  • Both Mr Lewis and Mr Unwin, and the classes they represent, are entitled to priority under section 73(3)(b) for payment of actuarially reduced pensions as at the winding up date.