Alexander Forbes Trustees Services Ltd v Doe & Anor

Alexander Forbes Trustees Services Ltd v Doe & Anor

On the winding-up of a hybrid pension scheme, the assets extracted for relevant money purchase benefits under regulation 13 must be applied to satisfy those benefits, and cannot be diverted to support defined benefit members. Section 73 and regulation 13 override the scheme rules except to the limited extent provided in section 73(4).

Parties
Claimant: Alexander Forbes Trustees Services Limited; First Defendant: John Doe; Second Defendant: Richard Roe
Jurisdiction
England and Wales
Judgment Date
16 December 2011
Procedural Posture
Civil / Judgment
Outcome
declaration granted in favour of money purchase members
Legal Topics
Winding Up of Pension Schemes, Priority of Pension Scheme Assets, Hybrid Pension Schemes, Statutory Interpretation
Pensions Law Trusts Law Winding Up of Pension Schemes Priority of Pension Scheme Assets Hybrid Pension Schemes Statutory Interpretation

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Parties

Alexander Forbes Trustees Services Limited

Claimant

John Doe

First Defendant

Richard Roe

Second Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether, on the winding-up of a hybrid pension scheme, money purchase assets can be diverted to support defined benefit members under section 73 of the Pensions Act 1995 and regulation 13 of the Occupational Pensions Scheme (Winding-up) Regulations 1996
  2. 2 Whether scheme rules or statutory provisions govern the priority of payment of money purchase and defined benefits

Ratio Decidendi

On the winding-up of a hybrid pension scheme, the assets extracted for relevant money purchase benefits under regulation 13 must be applied to satisfy those benefits, and cannot be diverted to support defined benefit members. Section 73 and regulation 13 override the scheme rules except to the limited extent provided in section 73(4).

Court Disposition

declaration granted in favour of money purchase members

Orders

  • The fund extracted for money purchase members must be applied to satisfy relevant money purchase benefits as defined in regulation 13.
  • Scheme rules are overridden by section 73 and regulation 13 except as provided in section 73(4).