CMG PENSION TRUSTEES LIMITED v CGI IT UK LIMITED

CMG PENSION TRUSTEES LIMITED v CGI IT UK LIMITED

Rule 5.11 of the CMG UK Pension Scheme is a forfeiture clause that extinguishes entitlement to any benefit or instalment not claimed within six years of its due date, regardless of member knowledge or whether the beneficiary is missing. Completing and returning a Retirement Option Form does not constitute a claim for the purposes of Rule 5.11. Interest on arrears should be applied at 1% above base rate. Recoupment of overpayments requires an order from a competent court if disputed, and a declaration suffices; the Pensions Ombudsman is not a competent court for this purpose.

Parties
Claimant: CMG Pension Trustees Limited; Defendant: CGI IT UK Limited
Jurisdiction
England and Wales
Judgment Date
11 August 2022
Procedural Posture
Civil / Final Judgment
Outcome
Claim determined; Rule 5.11 construed as a forfeiture clause extinguishing stale claims.
Legal Topics
Forfeiture Clauses, Limitation of Actions, Interest on Arrears, Equitable Recoupment, Interpretation of Pension Scheme Rules
Pensions Trusts Employment Forfeiture Clauses Limitation of Actions Interest on Arrears Equitable Recoupment Interpretation of Pension Scheme Rules

Case Brief

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Parties

CMG Pension Trustees Limited

Claimant

CGI IT UK Limited

Defendant

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Whether Rule 5.11 of the CMG UK Pension Scheme is a forfeiture clause
  2. 2 Whether Rule 5.11 extinguishes entitlement to arrears after six years
  3. 3 Whether a claim is made by completing a Retirement Option Form

Ratio Decidendi

Rule 5.11 of the CMG UK Pension Scheme is a forfeiture clause that extinguishes entitlement to any benefit or instalment not claimed within six years of its due date, regardless of member knowledge or whether the beneficiary is missing. Completing and returning a Retirement Option Form does not constitute a claim for the purposes of Rule 5.11. Interest on arrears should be applied at 1% above base rate. Recoupment of overpayments requires an order from a competent court if disputed, and a declaration suffices; the Pensions Ombudsman is not a competent court for this purpose.

Court Disposition

Claim determined; Rule 5.11 construed as a forfeiture clause extinguishing stale claims.

Orders

  • Representation orders granted as per Amended Claim Form paragraphs 2 and 3.
  • Rule 5.11 applies to shortfalls in lump sums and periodic payments; entitlement extinguished after six years if not claimed.