Bradstock Group Pension Scheme Trustees Ltd v Bradstock Group Plc and Others
| Jurisdiction | England & Wales |
| Judgment Date | 17 June 2002 |
| Date | 17 June 2002 |
| Court | Chancery Division |
CHANCERY DIVISION
Before Mr Charles Aldous
Pensions - trustees - can compromise a Pensions Act 1995 Section 75 debt - Pensions Act 1995 Sections 55, 61 & 75
There was no reason why trustees, exercising their powers under section 15 of the Trustee Act 1925, should not be able to compromise or otherwise deal with a statutory debt arising under section 75 of the Pensions Act 1995.
Mr Charles Aldous, QC, sitting as a deputy Chancery Division judge, so held on June 17, 2002 in an application by Bradstock Group Pension Scheme Trustees Ltd for directions. The claimant was the trustee of an occupational pension scheme. The defendants were the employers and a beneficiary.
The scheme, which was subject to the statutory minimum funding requirements imposed by sections 55 to 61 of the 1995 Act, was in substantial debt.
Since the employers could not bring the scheme up its fully funded state, the group would be forced into liquidation unless the deficit could be compromised, and the trustee would receive only a small proportion of the deficit.
If the scheme were wound up or the employer went into liquidation, section 75 of the 1995 Act would come into operation which created an unsecured non preferential debt owed by the employer.
The trustee negotiated a compromise with the employers under which the scheme would be wound up and simultaneously the section 75 debt would be compromised by an immediate cash payment plus deferred consideration.
HIS LORDSHIP said that by...
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