In the matter of Citibank (CI) Ltd Pension Scheme [2017] JRC 039 (06 March 2017)

In the matter of Citibank (CI) Ltd Pension Scheme [2017] JRC 039 (06 March 2017)

A genuine mistake occurred in the 2012 Variation, as the parties did not intend to change the pension calculation basis from basic salary to actual earnings. The requirements for rectification are satisfied: there was a genuine mistake, full and frank disclosure, and no other practical remedy. Rectification is granted to amend the definition of 'pensionable salary' to mean basic salary only, excluding bonuses and other emoluments.

Citation
[2017] JRC 039
Parties
Representor: Citibank (Channel Islands) Limited; First Respondent: Citibank (Channel Islands) Limited Pension Scheme Trustee; Second Respondent (representative of Beneficiaries): Mr Fricker
Jurisdiction
Jersey
Judgment Date
06 March 2017
Procedural Posture
Application for Rectification / Final Judgment
Outcome
Application for rectification granted
Legal Topics
Rectification of Trust Instruments, Mistake in Pension Scheme Rules, Interpretation of Pensionable Salary, Defined Benefit Pension Schemes
Trusts Pensions Equity Rectification of Trust Instruments Mistake in Pension Scheme Rules Interpretation of Pensionable Salary Defined Benefit Pension Schemes

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Parties

Citibank (Channel Islands) Limited

Representor

Citibank (Channel Islands) Limited Pension Scheme Trustee

First Respondent

Mr Fricker

Second Respondent (representative of Beneficiaries)

Procedural Posture

Application for Rectification / Final Judgment

Legal Issues

  1. 1 Whether the 2012 Variation to the pension scheme rules contained a mistake regarding the definition of 'pensionable salary'
  2. 2 Whether the requirements for rectification are satisfied under Jersey law

Ratio Decidendi

A genuine mistake occurred in the 2012 Variation, as the parties did not intend to change the pension calculation basis from basic salary to actual earnings. The requirements for rectification are satisfied: there was a genuine mistake, full and frank disclosure, and no other practical remedy. Rectification is granted to amend the definition of 'pensionable salary' to mean basic salary only, excluding bonuses and other emoluments.

Court Disposition

Application for rectification granted

Orders

  • The definition of 'pensionable salary' in the 2012 rules is rectified with effect from 20 July 2012 to mean basic salary received from the Employer during the 12 months ending on the day before the last Scheme Anniversary, excluding bonuses or any other emoluments.