FDR Ltd v Dutton & Ors

FDR Ltd v Dutton & Ors

The correct method for calculating pension increases for pre-20 June 1991 service is the Modified Cumulative Approach, which ensures that pensioners receive no less than they would have under the old rules, but do not benefit from a blend of the old and new rules. The proviso protects the right to a 3% compound increase, not a right to the most beneficial outcome from both rules.

Parties
Appellant: FDR Limited; Respondent: Carol Dutton; Respondent: David Lawrence; Respondent: Ty Miller; Respondent: Peter Motley; Respondent: Keith Rowling
Jurisdiction
England and Wales
Judgment Date
29 March 2017
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
appeal allowed
Legal Topics
Pension Scheme Amendments, Accrued Rights Protection, Interpretation of Pension Rules
Pensions Trusts Employment Pension Scheme Amendments Accrued Rights Protection Interpretation of Pension Rules

Case Brief

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Parties

FDR Limited

Appellant

Carol Dutton

Respondent

David Lawrence

Respondent

Ty Miller

Respondent

Peter Motley

Respondent

Keith Rowling

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 How do the new and old pension scheme rules interact regarding annual increases for pre-20 June 1991 service?
  2. 2 What is the correct method for calculating pension increases for accrued rights under the scheme?

Ratio Decidendi

The correct method for calculating pension increases for pre-20 June 1991 service is the Modified Cumulative Approach, which ensures that pensioners receive no less than they would have under the old rules, but do not benefit from a blend of the old and new rules. The proviso protects the right to a 3% compound increase, not a right to the most beneficial outcome from both rules.

Court Disposition

appeal allowed

Orders

  • The appeal is allowed.