I recently gave an Allen & Overy client seminar about avoiding some of the most common causes of pensions disputes. One of the causes of pensions litigation that I identified was mistakes in scheme documentation: the parties intended the document to say X but it actually says Y. I suggested a few practical points for trying to avoid these mistakes arising in the first place. One of those points focused on the value of giving clear instructions to advisers when instructing them to amend the scheme documentation. It was a point that seems to have been well received and so I thought it was worth covering it again in brief in this blog.
Archive for the ‘Communications’ Category
Avoiding pensions litigation: written instructions to advisers
Tuesday, 20 December 2011Scheme pays: act now to avoid complaints later?
Tuesday, 11 October 2011It sounded like a simple enough idea in principle: the new, lower, annual allowance for pension saving could lead to hefty tax charges for some members – substantially in excess of their actual income for the year – relating to increases in pension benefits which won’t translate into cash in hand for years or possibly decades to come. Some members might not be able to pay that tax bill, so the neat solution devised by the Treasury was to allow members to require their pension scheme to meet the annual allowance tax charge instead of paying it personally, with a corresponding deduction from pension – the facility known as ’scheme pays’. (more…)
Pension estoppel claims – do they work?
Tuesday, 30 August 2011Perceived wisdom dictates that so-called “estoppel” claims don’t work in a pensions context. Recent cases – both High Court and Pensions Ombudsman – do at least suggest though that, as is often the case, it is worth challenging perceived wisdom now and then. (more…)
Member complaints. Reading between the lines in the Grievson case
Monday, 11 July 2011The recent High Court decision in Grievson raises some interesting questions about the extent to which the Pensions Ombudsman (and possibly, by extension, trustees) should ‘fill in the blanks’ when a member’s complaint is not as well articulated (in terms of legal arguments) as it might be. It also highlights the importance of ensuring that every aspect of an IDRP or Ombudsman complaint is addressed.
RPI to CPI: a good time to look at old pension increase changes too?
Tuesday, 24 May 2011In those halcyon days before section 67, and the regulatory impositions of the disclosure regulations, did changes to pension schemes seem to go more smoothly? Perhaps in those days of higher inflation a change to guarantee inflation-linked increases to pensions capped at, say, 5% seemed an improvement on fixed increases of, say, 3% per annum. And such changes may have applied to all service, future and past, as it was better, so impacting on pensions in payment and deferred pensions. But was everyone told about it? With pension increase rules in the spotlight at the moment following the Government’s switch from RPI to CPI, it’s a good time to check.
