Headway Plc v Eastearly Ltd [2009] EWCA Civ 793 (23 July 2009)

Headway Plc v Eastearly Ltd [2009] EWCA Civ 793 (23 July 2009)

Section 75(6) of the Pensions Act 1995 requires that any scheme provision limiting liabilities by reference to assets be disregarded for section 75 debt calculation, enabling the trustee's Arrangement to increase the debt. Section 19 of the Pension Schemes Act 1993 permits partial buy-out of GMPs, but the scheme rules may restrict implementation unless high GMP members consent. If consent is not obtained, a truncated Arrangement can be lawfully implemented for other members.

Citation
[2009] EWCA Civ 793
Parties
Appellant/defendant: Headway PLC; Respondent/claimant: Eastearly Limited; Intervener: Secretary of State for Work and Pensions
Jurisdiction
England and Wales
Judgment Date
23 July 2009
Procedural Posture
Appeal From High Court (chancery Division) / Court of Appeal Judgment
Outcome
Appeal allowed in part; Arrangement permitted subject to consent or truncation.
Legal Topics
Section 75 Debt Calculation, Pension Scheme Winding Up, Guaranteed Minimum Pensions (gmps), Partial Buy Out, Statutory Discharge of Liability
Pensions Trusts Contract Employment Section 75 Debt Calculation Pension Scheme Winding Up Guaranteed Minimum Pensions (gmps) Partial Buy Out +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 10 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Headway PLC

Appellant/defendant

Eastearly Limited

Respondent/claimant

Secretary of State for Work and Pensions

Intervener

Procedural Posture

Appeal From High Court (chancery Division) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the trustee can lawfully implement an arrangement to increase the section 75 debt by completing a partial buy-out before quantifying the debt
  2. 2 Whether partial buy-out of GMPs is permitted under statutory and scheme provisions

Ratio Decidendi

Section 75(6) of the Pensions Act 1995 requires that any scheme provision limiting liabilities by reference to assets be disregarded for section 75 debt calculation, enabling the trustee's Arrangement to increase the debt. Section 19 of the Pension Schemes Act 1993 permits partial buy-out of GMPs, but the scheme rules may restrict implementation unless high GMP members consent. If consent is not obtained, a truncated Arrangement can be lawfully implemented for other members.

Court Disposition

Appeal allowed in part; Arrangement permitted subject to consent or truncation.

Orders

  • Counsel to agree form of order reflecting judgment outcome.
  • Arrangement may be implemented for consenting high GMP members and all low GMP members.