Roy Anthony Thomas v Southwark Council
[2024] EWHC 2739 (Ch)
Anne Dumbreck Robins v Secretary of State for Work and Pensions
28 July 2023
[2023] EWCA Civ 890
Court of Appeal
A widow's pension was reduced because of her late husband's old pension plan, even though she didn't have that type of plan herself. The court said the law is complicated but this reduction keeps things fair overall, making sure she gets the same as if her husband hadn't had the old plan.
Key Facts
- •Mrs. Robins is a widow and pensioner entitled to a Category A retirement pension and a GMP (Guaranteed Minimum Pension) from her late husband's occupational pension scheme.
- •The Secretary of State deducted the GMP from Mrs. Robins' Category A pension as a contracting-out deduction (COD) under s. 46(1) of the Pension Schemes Act 1993 (PSA 1993).
- •Mrs. Robins' own employment was not contracted out; only her husband's was.
- •The Upper Tribunal allowed Mrs. Robins' appeal, holding that no such deduction should be made.
- •The Secretary of State appealed to the Court of Appeal.
Legal Principles
Statutory construction of s. 46(1) PSA 1993 regarding contracting-out deductions from state pensions.
Pension Schemes Act 1993
The contracting-out deduction under s. 46(1) PSA 1993 is not limited to pensions derived from contracted-out contributions but applies to reduce the total pension where a GMP is involved.
Case law (Pearce v Secretary of State for Work and Pensions [2005] EWCA Civ 453; Wilkinson v Secretary of State for Work and Pensions [2009] EWCA Civ 1111)
The purpose of contracting out is to ensure that earners receive the same overall pension benefits (from a combination of state and occupational schemes) as if their employment had not been contracted out.
White Paper "Better Pensions", Cmnd 5713
Purpose clauses (like s. 40 PSA 1993) guide interpretation but do not override the clear wording of operative provisions.
Bennion, Bailey and Norbury on Statutory Interpretation
Outcomes
The Court of Appeal allowed the Secretary of State's appeal.
The Court found that the plain meaning of s. 46(1) PSA 1993 requires the deduction of the widow's GMP from her Category A pension, even if her employment was not contracted out. This ensures a consistent and coherent scheme that delivers the same overall benefits as if employment had not been contracted out.
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