G4S Plc v G4S Trusteees Ltd [2018] EWHC 1749 (Ch) (12 June 2018)

G4S Plc v G4S Trusteees Ltd [2018] EWHC 1749 (Ch) (12 June 2018)

In a final salary pension scheme closed to future accrual but retaining a final salary link, members whose accrual has ceased are not in 'pensionable service' as defined by s.124(1) Pensions Act 1995, are not 'active members', and the scheme is a 'frozen scheme' for the purposes of the Employer Debt Regulations. The final salary link quantifies the benefit already earned, not a new benefit earned by post-closure service.

Citation
[2018] EWHC 1749 (Ch)
Parties
Claimant: G4S PLC; First Defendant: G4S TRUSTEES LIMITED; Second Defendant: Sok Wah Lee
Jurisdiction
England and Wales
Judgment Date
12 June 2018
Procedural Posture
Part 8 Claim / First Instance Judgment
Outcome
Claim allowed; declaration granted
Legal Topics
Pension Scheme Closure, Final Salary Link, Employer Debt Regulations, Section 75 Debt, Active Member Definition, Pensionable Service, Statutory Construction
Pensions Law Employment Law Pension Scheme Closure Final Salary Link Employer Debt Regulations Section 75 Debt Active Member Definition Pensionable Service +1 more

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Parties

G4S PLC

Claimant

G4S TRUSTEES LIMITED

First Defendant

Sok Wah Lee

Second Defendant

Procedural Posture

Part 8 Claim / First Instance Judgment

Legal Issues

  1. 1 Whether members of a pension scheme closed to future accrual but retaining a final salary link are 'active members' for the purposes of the Employer Debt Regulations
  2. 2 Whether such members are in 'pensionable service' as defined by s.124(1) Pensions Act 1995

Ratio Decidendi

In a final salary pension scheme closed to future accrual but retaining a final salary link, members whose accrual has ceased are not in 'pensionable service' as defined by s.124(1) Pensions Act 1995, are not 'active members', and the scheme is a 'frozen scheme' for the purposes of the Employer Debt Regulations. The final salary link quantifies the benefit already earned, not a new benefit earned by post-closure service.

Court Disposition

Claim allowed; declaration granted

Orders

  • Declaration that the relevant sections of the G4S Pension Scheme are frozen schemes for the purposes of the Employer Debt Regulations
  • Interest-based representation orders made as indicated in the judgment