Virgin Media Limited v NTL Pension Trustees II Limited & Ors
[2023] EWHC 1441 (Ch)
Virgin Media Ltd v NTL Pension Trustees II Ltd & Ors
25 July 2024
[2024] EWCA Civ 843
Court of Appeal
A company tried to change its pension plan rules without getting required approval from an actuary. The court decided the changes were invalid because the rules about getting that approval apply to future pension benefits, not just past ones. This means the company might have to pay a lot more money to pensioners.
Key Facts
- •Appeal concerning statutory construction of legislation applicable to contracted-out occupational pension schemes.
- •Dispute over whether actuary's confirmation was required for rule alterations affecting future service pension benefits.
- •Case involves the National Transcommunications Limited Pension Plan, amended in 1999 without actuary confirmation.
- •Question centers on the definition of "section 9(2B) rights" in the Occupational Pension Schemes (Contracting-out) Regulations 1996.
- •High Court held that "section 9(2B) rights" included both past and future service rights.
- •Potential financial impact of approximately £10 million if amendments are deemed void.
Legal Principles
Statutory interpretation requires identifying the meaning of words in their context and purpose.
R (O) v Home Secretary [2022] UKSC 3; PACCAR [2023] UKSC 28
Legislative purpose and scheme are central to statutory interpretation, providing context for individual words.
Bloomsbury International Ltd v Department for Environment, Food and Rural Affairs [2011] UKSC 25
Principles of statutory interpretation apply equally to primary and secondary legislation; delegated legislation is interpreted in light of the enabling Act.
Bennion, Bailey & Norbury on Statutory Interpretation (8th edn, 2020) §3.17
The principle against doubtful penalisation should be considered, avoiding constructions that impose detriment without clear legislative intent.
Halsbury’s Laws (vol 96 (2024), Statutes and Legislative Process) §723
Outcomes
Appeal dismissed; High Court's decision upheld.
"Section 9(2B) rights" in the 1997 Regulations included future service rights; the actuary's confirmation was required for all amendments affecting such rights.
Amendments made in 1999 to the revaluation provisions of the scheme were void.
Actuary's written confirmation was not obtained in accordance with s. 37 PSA 1993 and reg 42 of the Contracting-out Regulations.
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