PETITION OF abrdn (SLSPS) PENSION TRUSTEE COMPANY LTD FOR DIRECTIONS [2023] ScotCS CSIH_31 (01 August 2023)

PETITION OF abrdn (SLSPS) PENSION TRUSTEE COMPANY LTD FOR DIRECTIONS [2023] ScotCS CSIH_31 (01 August 2023)

The trustee is entitled to enter into the proposed de-risking and benefit augmentation arrangement as it falls within its powers and fiduciary duties under the scheme rules. Any surplus remaining after all benefits and liabilities are secured is held on a resulting trust in favour of the participating employers immediately before the scheme's winding up, not in favour of members who made contributions, as their purpose was to enhance their own benefits, which has been achieved.

Citation
[2023] ScotCS CSIH_31
Parties
Petitioner: abrdn (SLSPS) Pension Trustee Company Limited; Respondents: Aberdeen Corporate Services Limited and other participating employers
Jurisdiction
Scotland
Judgment Date
01 August 2023
Procedural Posture
Petition for Directions (trust Law) / Opinion of the Court (final Judgment)
Outcome
All questions answered in the affirmative. Petitioner entitled to expenses out of the trust estate.
Legal Topics
Resulting Trusts, Pension Scheme Surplus, Trustee Discretion, De Risking Transactions, Fiduciary Duties
Trust Law Pensions Law Resulting Trusts Pension Scheme Surplus Trustee Discretion De Risking Transactions Fiduciary Duties

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Parties

abrdn (SLSPS) Pension Trustee Company Limited

Petitioner

Aberdeen Corporate Services Limited and other participating employers

Respondents

Procedural Posture

Petition for Directions (trust Law) / Opinion of the Court (final Judgment)

Legal Issues

  1. 1 Whether the trustee is entitled to enter into the proposed de-risking arrangement and augment member benefits under the scheme rules and fiduciary duties
  2. 2 Whether any surplus assets after winding up are subject to a resulting trust and in whose favour
  3. 3 Timing and beneficiaries of any resulting trust

Ratio Decidendi

The trustee is entitled to enter into the proposed de-risking and benefit augmentation arrangement as it falls within its powers and fiduciary duties under the scheme rules. Any surplus remaining after all benefits and liabilities are secured is held on a resulting trust in favour of the participating employers immediately before the scheme's winding up, not in favour of members who made contributions, as their purpose was to enhance their own benefits, which has been achieved.

Court Disposition

All questions answered in the affirmative. Petitioner entitled to expenses out of the trust estate.

Orders

  • Trustee entitled to enter into the proposed arrangement including benefit augmentation and transformation of discretionary increases into guaranteed increases.
  • Any surplus after securing all benefits and liabilities is held on resulting trust for participating employers immediately before winding up.