Foster Wheeler Ltd v Hanley & Ors (Rev 1)

Foster Wheeler Ltd v Hanley & Ors (Rev 1)

The correct approach is to pay members with mixed NRDs a pension in respect of benefits accrued with a NRD of 60 from age 60, and to pay benefits accrued with a NRD of 65 as a deferred pension, which may be taken early but must be actuarially reduced. This approach, using rule 17, represents the minimum interference with the scheme's provisions, avoids windfalls, and is consistent with both European and domestic law. The judge's approach (option 1) was wrong as it conferred greater benefits than required and unfairly prejudiced the company and other members.

Parties
Appellant: Foster Wheeler Limited; Respondent: Andrew John Hanley; Respondent: David Wardlaw; Respondent: George Midgley; Respondent: Norman Frederick Harley; Respondent: Trevor Bryan Staples; Respondent: Richard George Larkin; Respondent: Richard Bruce Chacksfield; Respondent: Russell Thomas Forrester Evans; Respondent: Richard Williams
Jurisdiction
England and Wales
Judgment Date
08 July 2009
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal allowed
Legal Topics
Pension Scheme Equalisation, Barber Rights, Normal Retirement Date (nrd), Early Retirement Provisions, Trustee Powers, Implementation of EU Law in Domestic Pensions, Scheme Amendments and Member Rights
Pensions Law Trusts Law Employment Law European Law Pension Scheme Equalisation Barber Rights Normal Retirement Date (nrd) Early Retirement Provisions +3 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 4 Authorities cited 11 Party arguments 2
Sign in to unlock

Parties

Foster Wheeler Limited

Appellant

Andrew John Hanley

Respondent

David Wardlaw

Respondent

George Midgley

Respondent

Norman Frederick Harley

Respondent

Trevor Bryan Staples

Respondent

Richard George Larkin

Respondent

Richard Bruce Chacksfield

Respondent

Russell Thomas Forrester Evans

Respondent

Richard Williams

Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 How should benefits be paid to members with mixed normal retirement dates (NRDs) who retire between those dates when the scheme rules are silent?
  2. 2 What is the correct method for implementing Barber rights in the Foster Wheeler pension scheme?
  3. 3 Does European law require payment of full benefits, actuarially reduced benefits, or split pensions in these circumstances?

Ratio Decidendi

The correct approach is to pay members with mixed NRDs a pension in respect of benefits accrued with a NRD of 60 from age 60, and to pay benefits accrued with a NRD of 65 as a deferred pension, which may be taken early but must be actuarially reduced. This approach, using rule 17, represents the minimum interference with the scheme's provisions, avoids windfalls, and is consistent with both European and domestic law. The judge's approach (option 1) was wrong as it conferred greater benefits than required and unfairly prejudiced the company and other members.

Court Disposition

Appeal allowed

Orders

  • The appeal is allowed.
  • The question of payment of benefits to members with mixed NRDs is to be answered in accordance with option 2 (actuarially reduced benefits for NRD 65 service taken before age 65).