Harding & Ors For Directions & Answers For Joy Manufacturing Holdings [1999] ScotCS 35 (29 January 1999)

Harding & Ors For Directions & Answers For Joy Manufacturing Holdings [1999] ScotCS 35 (29 January 1999)

Trustees must admit eligible members; their discretionary power to increase pensions is limited to pensions in payment or deferred and cannot be used to unilaterally alter benefit rules without employer consent; trustees must have a policy on security level, not benefit levels; they cannot surrender discretion to the court; and the proposed merger and surplus distribution is within their powers and a reasonable exercise of discretion.

Citation
[1999] ScotCS 35
Parties
Petitioners: Peter Harding & Others, Trustees of Joy Manufacturing Holdings Limited Pension and Life Assurance Scheme; Respondents: Joy Manufacturing Holdings Limited
Jurisdiction
Scotland
Judgment Date
29 January 1999
Procedural Posture
Petition for Directions / Opinion of the Court
Outcome
Petition for directions answered; all questions determined as set out in the opinion.
Legal Topics
Trustee Discretion, Pension Scheme Surplus, Scheme Amendment Powers, Trustee Policy Requirements, Court's Role in Trustee Discretion
Trusts and Pensions Law Trustee Discretion Pension Scheme Surplus Scheme Amendment Powers Trustee Policy Requirements Court's Role in Trustee Discretion

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Parties

Peter Harding & Others, Trustees of Joy Manufacturing Holdings Limited Pension and Life Assurance Scheme

Petitioners

Joy Manufacturing Holdings Limited

Respondents

Procedural Posture

Petition for Directions / Opinion of the Court

Legal Issues

  1. 1 Whether trustees may refuse admission to scheme membership under Rule 3
  2. 2 Scope of trustees' discretionary power to increase pensions under Rule 26(3)
  3. 3 Nature and content of 'policy' required by trustees under Rule 9

Ratio Decidendi

Trustees must admit eligible members; their discretionary power to increase pensions is limited to pensions in payment or deferred and cannot be used to unilaterally alter benefit rules without employer consent; trustees must have a policy on security level, not benefit levels; they cannot surrender discretion to the court; and the proposed merger and surplus distribution is within their powers and a reasonable exercise of discretion.

Court Disposition

Petition for directions answered; all questions determined as set out in the opinion.

Orders

  • Trustees may not refuse admission to eligible members under Rule 3.
  • Trustees' discretionary power to increase pensions under Rule 26(3) is limited as specified.