Agco Ltd. v Massey Ferguson Works Pension Trust Ltd & Ors

Agco Ltd. v Massey Ferguson Works Pension Trust Ltd & Ors

A member over the age of 50 qualifies for an unreduced normal retirement pension under rule 13(c)(iii) (or rule 14(c)(iii)) only if the member's contract of employment is terminated for redundancy in circumstances where the member has volunteered and been accepted for redundancy at the employer's invitation. Compulsory redundancies and other dismissals do not fall within the scope of 'retires from service at the request of the employer.'

Parties
Claimant/appellant: AGCO Limited; First Defendant/respondent: Massey Ferguson Works Pension Trust Limited; Second Defendant/respondent: Ronald Vincent Bradbury; Third Defendant/respondent: Alan Samuel Chater
Jurisdiction
England and Wales
Judgment Date
17 July 2003
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From Chancery Division
Outcome
Appeal allowed in part; declarations granted clarifying the scope of rule 13(c)(iii) and rule 14(c)(iii).
Legal Topics
Redundancy, Pension Scheme Interpretation, Early Retirement, Dismissal, Voluntary Redundancy, Compulsory Redundancy
Employment Law Pensions Law Trust Law Redundancy Pension Scheme Interpretation Early Retirement Dismissal Voluntary Redundancy +1 more

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Parties

AGCO Limited

Claimant/appellant

Massey Ferguson Works Pension Trust Limited

First Defendant/respondent

Ronald Vincent Bradbury

Second Defendant/respondent

Alan Samuel Chater

Third Defendant/respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From Chancery Division

Legal Issues

  1. 1 Whether an employee who is made redundant (voluntarily or compulsorily) 'retires from service at the request of the employer' within the meaning of the pension scheme rules and thus qualifies for an unreduced normal retirement pension.

Ratio Decidendi

A member over the age of 50 qualifies for an unreduced normal retirement pension under rule 13(c)(iii) (or rule 14(c)(iii)) only if the member's contract of employment is terminated for redundancy in circumstances where the member has volunteered and been accepted for redundancy at the employer's invitation. Compulsory redundancies and other dismissals do not fall within the scope of 'retires from service at the request of the employer.'

Court Disposition

Appeal allowed in part; declarations granted clarifying the scope of rule 13(c)(iii) and rule 14(c)(iii).

Orders

  • Paragraphs 1 and 2 of the order of Mr Justice Neuberger set aside and replaced by new declarations.
  • Costs of parties other than the Claimant to be paid by the Trustees from the assets of the Works Scheme on the indemnity basis.