Result of High Court and Court of Appeal proceedings
In May 2022 the 91热爆 announced a review of its future pension provision for employees. At that time the 91热爆 also confirmed that it had decided to ask the High Court to rule on the correct interpretation of one of the Scheme’s Rules. The 91热爆 asked the Court whether it might be possible to change future service benefits and/or member contributions for Active Members under the power of amendment in the Scheme’s Trust Deed and Rules (Rule 19) and, if so, on what terms and by what process.
The High Court hearing took place in May 2023 and its decision was issued on 28 July 2023. The 91热爆 appealed the decision of the High Court to the Court of Appeal and this was heard on 25-27 June 2024. The Court of Appeal issued its decision on 9 July 2024.
At each hearing, the 91热爆, a Representative Beneficiary for the Active Members and the Trustee each had their own legal teams. The 91热爆’s lawyers argued in effect that Rule 19 of the Scheme’s Trust Deed and Rules could be used to change future service benefits and/or member contributions for Active Members, provided both the Trustee and the 91热爆 agreed to the change. The Representative Beneficiary’s lawyers argued against this interpretation. They argued that Rule 19 could only be used to change future service benefits in limited circumstances – which are not just that both the Trustee and the 91热爆 agree the change, but that, in addition, at least one of three conditions set out in the Rule (see below) is also satisfied.
High Court decision
The High Court preferred the Representative Beneficiary’s arguments, concluding that Rule 19 can only be used to change future service benefits and/or member contributions for Active Members where both the Trustee and the 91热爆 agree the change and one of three conditions set out in Rule 19 has been satisfied. Those three conditions are, in summary, that:
1. the Scheme Actuary (who is appointed by the Trustee) has confirmed that Active Members will not be substantially worse off as a result of the proposed changes; or
2. if Active Members will be substantially worse off, the Scheme Actuary has confirmed that Active Members will be provided with suitable alternative benefits (which must be substantially equivalent to the benefits being replaced); or
3. the Active Members as a group have agreed to the proposed changes at a duly convened meeting of Active Members.
You can .
Court of Appeal decision
The 91热爆 was granted permission to appeal the High Court’s decision to the Court of Appeal and this was heard on 25-27 June 2024.
The Court of Appeal issued its decision on 9 July 2024 and you can .
In summary, the 91热爆’s appeal was dismissed. The Court of Appeal upheld the decision of the High Court that the 91热爆 cannot use Rule 19 to make changes to future service benefits and/or member contributions for Active Members without going through one of the routes set out above.
We will update the Scheme website in the event of any significant further developments regarding the proceedings.
Please note that the decisions made by the Court of Appeal and the High Court do not change the benefits to which Active Members are entitled from the Scheme.
It is now for the 91热爆 to consider its next steps, although it has already stated that it will not seek to appeal the decision any further.
More information
You can find the Trustee’s answers to many questions here. These will continue to be updated in line with any significant further developments.
If you are a member of the Scheme and, having read the questions and answers, you have a comment or a question for the Trustee about the Court process, you can complete the Trustee enquiry form at the bottom of the Question and Answers page.
If you are a current employee and have a comment or a question for the 91热爆, you can complete the 91热爆 enquiry form, on the 91热爆 Pension Review Pages of Gateway.
If you are an Active Member and would like to get in touch with the Representative Beneficiary about the Court application you can do so via her legal team up until 9 August 2024 by emailing: RepresentativeBeneficiary2022@shlegal.com or by writing to: Representative Beneficiary (01-60-06650), Stephenson Harwood LLP, 1 Finsbury Circus, London, EC2M 7SH.
For any other questions about your Scheme pension that are not related to the High Court proceedings, you can find lots of information on this website. You can also get details of your own pension benefits using .