Wedgwood Pension Plan Trustee Ltd v Salt [2018] EWHC 79 (Ch) (26 January 2018)

Wedgwood Pension Plan Trustee Ltd v Salt [2018] EWHC 79 (Ch) (26 January 2018)

Rule 62 was validly introduced to allow termination of future accrual by Employers' Termination Notice, but the fetter in rule 48 protects the final salary link for accrued rights. Rule 62 can be construed with an implied limitation requiring Participating Companies to demonstrate impracticability or inexpediency, aligning with rule 45, to avoid prejudicing members' rights.

Citation
[2018] EWHC 79 (Ch)
Parties
Claimant: Wedgwood Pension Plan Trustee Limited; Defendant: Keith Salt
Jurisdiction
England and Wales
Judgment Date
26 January 2018
Procedural Posture
Part 8 Claim / Judgment After Hearing
Outcome
Rule 62 validly introduced subject to implied limitation; Employers' Termination Notice effective to terminate future accrual but not to break final salary link for accrued rights.
Legal Topics
Power of Amendment, Fetter on Amendment, Accrued Rights, Final Salary Link, Severance of Invalid Amendments
Pensions Trusts Employment Power of Amendment Fetter on Amendment Accrued Rights Final Salary Link Severance of Invalid Amendments

Case Brief

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Parties

Wedgwood Pension Plan Trustee Limited

Claimant

Keith Salt

Defendant

Procedural Posture

Part 8 Claim / Judgment After Hearing

Legal Issues

  1. 1 Whether rule 62 of the 2001 Rules was validly introduced such that it allowed future accrual to be terminated by the Employers' Termination Notice with no continued salary link
  2. 2 Whether the fetter in rule 48 of the 1995 Rules protects future rights or only accrued rights
  3. 3 Whether rule 62 can be construed with an implied limitation to align with rule 48

Ratio Decidendi

Rule 62 was validly introduced to allow termination of future accrual by Employers' Termination Notice, but the fetter in rule 48 protects the final salary link for accrued rights. Rule 62 can be construed with an implied limitation requiring Participating Companies to demonstrate impracticability or inexpediency, aligning with rule 45, to avoid prejudicing members' rights.

Court Disposition

Rule 62 validly introduced subject to implied limitation; Employers' Termination Notice effective to terminate future accrual but not to break final salary link for accrued rights.

Orders

  • Plan closed to future accrual from 30 June 2006; final salary link for accrued rights preserved.
  • Participating Companies must demonstrate impracticability or inexpediency to serve notice under rule 62.