IMG Pension Plan HR Trustees Ltd v German & Anor [2009] EWHC 2785 (Ch) (10 November 2009)

IMG Pension Plan HR Trustees Ltd v German & Anor [2009] EWHC 2785 (Ch) (10 November 2009)

The 1992 Deed did not validly convert the Plan from a defined benefit to a defined contribution scheme in respect of accrued rights because the power of amendment was not properly exercised and did not permit the removal of accrued defined benefit entitlements. The compromise agreements did not operate to waive accrued defined benefit rights for members who did not give informed consent. Estoppel and contract arguments failed due to lack of clear representation or agreement by members to forgo accrued rights.

Citation
[2009] EWHC 2785 (Ch)
Parties
Claimant: IMG Pension Plan HR Trustees Limited; First Defendant: Peter German; Second Defendant: International Management Group (UK) Ltd
Jurisdiction
England and Wales
Judgment Date
10 November 2009
Procedural Posture
Chancery Division Part 8 Claim / First Instance Judgment
Outcome
Declaratory relief granted; conversion invalid as to accrued rights; compromise agreements not effective to waive accrued rights without informed consent.
Legal Topics
Pension Scheme Conversion, Trustee Duties, Power of Amendment, Compromise Agreements, Estoppel, Contractual Interpretation
Pensions Law Trusts Law Employment Law Pension Scheme Conversion Trustee Duties Power of Amendment Compromise Agreements Estoppel +1 more

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Parties

IMG Pension Plan HR Trustees Limited

Claimant

Peter German

First Defendant

International Management Group (UK) Ltd

Second Defendant

Procedural Posture

Chancery Division Part 8 Claim / First Instance Judgment

Legal Issues

  1. 1 Whether the 1992 Deed validly converted the Plan from a defined benefit to a defined contribution scheme
  2. 2 Whether the power of amendment was properly exercised
  3. 3 Effect of compromise agreements on members' rights

Ratio Decidendi

The 1992 Deed did not validly convert the Plan from a defined benefit to a defined contribution scheme in respect of accrued rights because the power of amendment was not properly exercised and did not permit the removal of accrued defined benefit entitlements. The compromise agreements did not operate to waive accrued defined benefit rights for members who did not give informed consent. Estoppel and contract arguments failed due to lack of clear representation or agreement by members to forgo accrued rights.

Court Disposition

Declaratory relief granted; conversion invalid as to accrued rights; compromise agreements not effective to waive accrued rights without informed consent.

Orders

  • Declaration that the 1992 Deed did not validly remove accrued defined benefit rights of members as at 1 January 1992.
  • Declaration that compromise agreements do not preclude members from asserting accrued defined benefit rights unless informed consent is proven.