Two key pensions cases on the duties of trustees and employers

18 March 2015

Following the earlier determination in IBM v Dalgleish last year in which IBM was found to have breached its duty of trust and confidence to its employees in making changes to its defined benefit pension scheme, judgment has now been given on the associated remedies.

The consequences of breaching the duty of trust and confidence are unenforceability of the affected arrangements, and claims for damages.

In the separate case of MNRPF v Stena Line, which again followed an earlier Court of Appeal judgment in 2011, the court has ruled on the regard trustees may have for the interests of employers in setting recovery plans.  The case also determines that maintenance of a special revaluation rate for employed members is not enough for continued active membership for statutory purposes.