Walker Morris Trustees Ltd.v Masterson & Anor

Walker Morris Trustees Ltd.v Masterson & Anor

The amendments to the pension scheme (other than the 1986 Deed and the 1991 resolution) are invalid for failure to obtain written actuarial advice as required by clause 12 of the trust deed. Section 67 certificates do not satisfy this requirement. The 1991 resolution is valid as a utilisation of surplus and/or to secure Inland Revenue approval. The power of augmentation cannot be used to validate general amendments or benefit improvements for classes of members.

Parties
Claimant: Walker Morris Trustees Ltd; First Defendant: Andrew Robert Masterson; Second Defendant: Sally Anne Lodge
Jurisdiction
England and Wales
Judgment Date
31 July 2009
Procedural Posture
Civil (pensions/trusts) / Judgment After Trial of Preliminary Issues
Outcome
Declarations granted; most amendments invalid except 1986 Deed and 1991 resolution; directions given for scheme administration.
Legal Topics
Trustee Powers, Pension Scheme Amendments, Interpretation of Trust Deeds, Actuarial Advice Requirements, Scheme Member Rights
Trust Law Pensions Law Trustee Powers Pension Scheme Amendments Interpretation of Trust Deeds Actuarial Advice Requirements Scheme Member Rights

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Parties

Walker Morris Trustees Ltd

Claimant

Andrew Robert Masterson

First Defendant

Sally Anne Lodge

Second Defendant

Procedural Posture

Civil (pensions/trusts) / Judgment After Trial of Preliminary Issues

Legal Issues

  1. 1 Whether amendments to the pension scheme are valid absent written actuarial advice as required by the trust deed
  2. 2 Whether section 67 certificates under the Pensions Act 1995 satisfy the written advice requirement
  3. 3 Whether the 1991 resolution is valid as an exercise to secure Inland Revenue approval or as a utilisation of surplus under clause 10

Ratio Decidendi

The amendments to the pension scheme (other than the 1986 Deed and the 1991 resolution) are invalid for failure to obtain written actuarial advice as required by clause 12 of the trust deed. Section 67 certificates do not satisfy this requirement. The 1991 resolution is valid as a utilisation of surplus and/or to secure Inland Revenue approval. The power of augmentation cannot be used to validate general amendments or benefit improvements for classes of members.

Court Disposition

Declarations granted; most amendments invalid except 1986 Deed and 1991 resolution; directions given for scheme administration.

Orders

  • Declarations that amendments (other than the 1986 Deed and 1991 resolution) are invalid for lack of written actuarial advice.
  • Declaration that the 1991 resolution is valid as a utilisation of surplus and/or to secure Inland Revenue approval.