Axminster Ruling | Arc briefing for DB trustees
The Axminster case sheds new light on how to deal with historic underpayments in defined benefit (DB) occupational pension schemes. The ruling contains a new and hard-nosed legal analysis of how underpayments can be treated but the question is the extent to which trustees will want to follow this in practice and whether they need to take a long hard look at their forfeiture rules.
Axminster also confirms that Trustees cease to be at risk of liability for claims 6 years after they ceased to hold trust assets which is helpful news for schemes in winding-up where the run off market is tough. But there are some quirks in this ruling which it is worth trustees knowing about.
To read and download our practical guide, please click here.
The views in this article are intended for general information purposes only and should not be used as a substitute for professional advice. Arc Pensions Law and the author(s) are not responsible for any direct or indirect result arising from any reliance placed on content, including any loss, and exclude liability to the full extent. Always seek appropriate legal advice from a suitably qualified lawyer before taking, or avoiding taking, any action. If you have any questions on the points raised in the above, please do not hesitate to get in touch.