Sterling Insurance Trustees Ltd v Sterling Insurance Group Ltd
The inclusion of the word 'due' in the proviso to the amendment power was a mistake. The proviso should be construed as if it protects all accrued benefits, including the final salary link, not just benefits already payable. Therefore, the 2004 amendment breaking the final salary link was ineffective.
- Parties
- Claimant: Sterling Insurance Trustees Limited; Defendant: Sterling Insurance Group Limited
- Jurisdiction
- England and Wales
- Judgment Date
- 03 July 2015
- Procedural Posture
- Civil (part 8 Claim) / Judgment at First Instance
- Outcome
- Claim allowed
- Legal Topics
- Construction of Trust Deeds, Pension Scheme Amendments, Interpretation of Amendment Powers
Case Brief
Summary, issues, holding and outcome
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Parties
Sterling Insurance Trustees Limited
Claimant
Sterling Insurance Group Limited
Defendant
Procedural Posture
Civil (part 8 Claim) / Judgment at First Instance
Legal Issues
- 1 Whether the proviso to the amendment power in the pension scheme's trust deed prevents breaking the final salary link by the 2004 amendment
- 2 Proper construction of the phrase 'benefits accrued due' in the context of the trust deed
Ratio Decidendi
The inclusion of the word 'due' in the proviso to the amendment power was a mistake. The proviso should be construed as if it protects all accrued benefits, including the final salary link, not just benefits already payable. Therefore, the 2004 amendment breaking the final salary link was ineffective.
Court Disposition
Claim allowed
Orders
- Clause 4 of the Deed of Variation dated 31 December 2004 did not validly amend the governing provisions of the Scheme to break the final salary link.
Full Case Text
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