Documenting Responsibility For Contributing To DB Schemes

The Court of Appeal's decision in the case of Heis v MF Global highlights the importance of documenting just who has responsibility for contributing to a defined benefit pension scheme.

EIS AND OTHERS V MF  GLOBAL UK SERVICES LTD (IN ADMINISTRATION) [2016] EWCA CIV 569, [2016] ALL ER (D) 125 (JUN)

The Court of Appeal, Civil Division, dismissed an appeal by the administrators of a company regarding an implied contract between it and the respondent company. The judge had been correct, on the evidence, to have implied a contract between them pursuant to which the appellant company paid the expenses of staff seconded to it by the respondent company. That implied contract had included an obligation on the appellant to indemnify the respondent in respect of its debt pursuant to section 75 of the Pensions Act 1995 (PA 1995).