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Bridge Trustees Ltd. v. Yates
04-03-2010
The Court of Appeal today delivered its long awaited judgment in Bridge Trustees, the principal issues in which were (i) the definition of “money purchase benefits” in section 181 of the Pension Schemes Act 1993 and (ii) in the case of a scheme which went into winding-up before 6 April 2005, the priority status under section 73 of the Pensions Act 1995 of benefits attributable to employers’ obligatory matching contributions where the member has made additional voluntary contributions.
The Court of Appeal upheld the judge’s conclusion that the benefits in question were money purchase in character, distinguishing Aon Trust Corpn. v. KPMG [2006] 1 W.L.R. 97, but reversed her conclusion that benefits attributable to the employers’ matching contributions were not derived from the payment by members of voluntary contributions, holding instead that such benefits were analogous to the investment return on the member’s own contributions and were therefore prioritised under section 73 in its then form.
The Court of Appeal refused permission to appeal to the Supreme Court.
Keith Rowley Q.C. appeared for the Trustee.
For a full copy of the judgment please click on the link entitled "download this article" below.
