Easterly Ltd v Headway Plc

Easterly Ltd v Headway Plc

The trustee is entitled to fix an applicable time after a partial buy-out, and the section 75 debt calculation will be based on the remaining liability to provide benefits, excluding those discharged by the partial buy-out on a benefit-for-benefit basis, subject to caps and provisos in the scheme rules and satisfaction of guaranteed minimum pension obligations.

Parties
Claimant: Easterly Limited; Defendant: Headway PLC
Jurisdiction
England and Wales
Judgment Date
30 October 2008
Procedural Posture
Part 8 Claim / Judgment
Outcome
Declarations granted in principle, subject to provisos and rider.
Legal Topics
Partial Buy Out, Section 75 Debt, Minimum Funding Requirement, Guaranteed Minimum Pension, Trustee Powers, Scheme Winding Up
Pensions Trusts Employment Partial Buy Out Section 75 Debt Minimum Funding Requirement Guaranteed Minimum Pension Trustee Powers +1 more

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Parties

Easterly Limited

Claimant

Headway PLC

Defendant

Procedural Posture

Part 8 Claim / Judgment

Legal Issues

  1. 1 Whether a partial buy-out discharges trustee liability on a benefit-for-benefit basis or minimum funding requirement basis
  2. 2 Whether trustee can fix an 'applicable time' for section 75 debt after partial buy-out
  3. 3 Effect of partial buy-out on guaranteed minimum pension obligations

Ratio Decidendi

The trustee is entitled to fix an applicable time after a partial buy-out, and the section 75 debt calculation will be based on the remaining liability to provide benefits, excluding those discharged by the partial buy-out on a benefit-for-benefit basis, subject to caps and provisos in the scheme rules and satisfaction of guaranteed minimum pension obligations.

Court Disposition

Declarations granted in principle, subject to provisos and rider.

Orders

  • Trustee entitled to fix an applicable time after partial buy-out for section 75 purposes.
  • Section 75 debt to be calculated based on remaining unmatched liabilities after partial buy-out.