A More Flexible Approach to Equalisation Requirements Under Scots Law

The recent decision by the Outer House of the Court of Session in Scotland, in the case of Low & Bonar plc and Low & Bonar Pension Trustees Limited v Mercer Limited, will have significant repercussions for occupational pension schemes in Scotland where the manner in which the equalisation of Normal Retirement Dates ("NRDs") is in dispute.

The judgment concerned the manner in which the equalisation of NRDs had been effected in practice and whether this was done in accordance with the requirements of the alteration power of the pension scheme. The law surrounding equalisation has been extensively developed in English courts, one aspect of which states that where the alteration power prescribes a method by which to effect amendments, that method must be strictly followed in order for amendments to be valid.