Houldsworth & Anor v Bridge Trustees Ltd & Ors

Houldsworth & Anor v Bridge Trustees Ltd & Ors

Benefits derived from employer matching contributions triggered by member voluntary contributions are 'derived from' those contributions and have priority under s73(3)(a). MoneyMatch and VIP benefits are money purchase benefits excluded from s73, notwithstanding notional investment returns, internal annuitisation, GMP, or the 1983 Guarantee. Only the pre-6 April 1997 MoneyMatch benefits for members with GMP are underpin benefits falling within s73; post-6 April 1997 MoneyMatch benefits are not. Protected rights are money purchase benefits and are excluded from s73 by regulation 13.

Parties
Appellant: Mark Houldsworth; Appellant: John Hunter; Respondent: Bridge Trustees Limited; Respondent: John Yates; Intervener: Secretary of State for Work and Pensions
Jurisdiction
England and Wales
Judgment Date
04 March 2010
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal allowed in part, dismissed in part; High Court order varied accordingly.
Legal Topics
Occupational Pension Schemes, Money Purchase Benefits, Winding Up of Pension Schemes, Order of Priority in Insolvency, Interpretation of Pensions Act 1995, Hybrid Pension Schemes, Guaranteed Minimum Pension (gmp), Protected Rights, Employer and Employee Contributions, Internal Annuitisation
Pensions Law Trusts Law Insolvency Law Occupational Pension Schemes Money Purchase Benefits Winding Up of Pension Schemes Order of Priority in Insolvency Interpretation of Pensions Act 1995 +5 more

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Parties

Mark Houldsworth

Appellant

John Hunter

Appellant

Bridge Trustees Limited

Respondent

John Yates

Respondent

Secretary of State for Work and Pensions

Intervener

Procedural Posture

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

Legal Issues

  1. 1 Whether benefits derived from employer matching contributions are 'derived from' voluntary contributions under s73(3)(a) Pensions Act 1995
  2. 2 Whether MoneyMatch and VIP benefits are 'money purchase benefits' excluded from s73
  3. 3 Whether internal annuitisation and notional investment returns prevent benefits being 'money purchase benefits'

Ratio Decidendi

Benefits derived from employer matching contributions triggered by member voluntary contributions are 'derived from' those contributions and have priority under s73(3)(a). MoneyMatch and VIP benefits are money purchase benefits excluded from s73, notwithstanding notional investment returns, internal annuitisation, GMP, or the 1983 Guarantee. Only the pre-6 April 1997 MoneyMatch benefits for members with GMP are underpin benefits falling within s73; post-6 April 1997 MoneyMatch benefits are not. Protected rights are money purchase benefits and are excluded from s73 by regulation 13.

Court Disposition

Appeal allowed in part, dismissed in part; High Court order varied accordingly.

Orders

  • Trustee's resolution that benefits derived from employer matching contributions are within s73(3)(a) approved.
  • Declaration that MoneyMatch and VIP benefits are money purchase benefits excluded from s73.