Railways Pension Trustee Company Limited v Atos IT Services UK Limited & Anor.

Railways Pension Trustee Company Limited v Atos IT Services UK Limited & Anor.

Rule 21(1) of the Atos Section Rules does not require a mechanical calculation to eliminate the shortfall in full but confers a discretion on the Actuary to consider affordability, value for money, and collectability when determining increases in member contributions or reductions in benefits. Article 7 of the Protection Order imposes a sufficiency of funding or balance of cost obligation on the employer, requiring the employer to make good any shortfall not otherwise addressed by member contributions or benefit reductions, and applies to both protected and unprotected members due to the unsegregated nature of the section. Article 5 of the Protection Order prohibits the employer and...

Parties
Claimant: Railways Pension Trustee Company Limited; Defendant: Atos IT Services UK Limited; Defendant: Atos UK International IT Services Limited
Jurisdiction
England and Wales
Judgment Date
16 December 2022
Procedural Posture
Part 8 Claim (directions in Pension Scheme Administration) / Judgment After Hearing of Substantive Issues
Outcome
Declaratory judgment in favour of the Trustee's construction of the rules and statutory order.
Legal Topics
Interpretation of Pension Scheme Rules, Employer Contribution Obligations, Protection of Pension Rights, Application of Statutory Orders to Pension Schemes
Pensions Law Trust Law Statutory Interpretation Interpretation of Pension Scheme Rules Employer Contribution Obligations Protection of Pension Rights Application of Statutory Orders to Pension Schemes

Case Brief

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Parties

Railways Pension Trustee Company Limited

Claimant

Atos IT Services UK Limited

Defendant

Atos UK International IT Services Limited

Defendant

Procedural Posture

Part 8 Claim (directions in Pension Scheme Administration) / Judgment After Hearing of Substantive Issues

Legal Issues

  1. 1 Whether Rule 21 of the Atos Section Rules confers a discretion on the Actuary regarding increases in member contributions and reductions in benefits to address a funding shortfall
  2. 2 Whether Article 7 of the Railway Pensions (Protection and Designation of Schemes) Order imposes a sufficiency of funding or balance of cost obligation on the employer
  3. 3 Whether Article 5 of the Protection Order prohibits actions likely to cause protected members to opt out by reason of unaffordable contributions or benefit reductions

Ratio Decidendi

Rule 21(1) of the Atos Section Rules does not require a mechanical calculation to eliminate the shortfall in full but confers a discretion on the Actuary to consider affordability, value for money, and collectability when determining increases in member contributions or reductions in benefits. Article 7 of the Protection Order imposes a sufficiency of funding or balance of cost obligation on the employer, requiring the employer to make good any shortfall not otherwise addressed by member contributions or benefit reductions, and applies to both protected and unprotected members due to the unsegregated nature of the section. Article 5 of the Protection Order prohibits the employer and...

Court Disposition

Declaratory judgment in favour of the Trustee's construction of the rules and statutory order.

Orders

  • Declaration that the Actuary has a discretion to determine member contribution rates and benefit reductions under Rule 21(1) taking into account affordability, value for money, and collectability.
  • Declaration that Article 7 of the Protection Order imposes a sufficiency of funding or balance of cost obligation on the employer to make good any shortfall not otherwise addressed.