The Bridge Decision - Money Purchase Or Defined Benefit?

The Court of Appeal handed down an important judgment in Bridge Trustees v Yates today relating to the interpretation of the phrase "money purchase benefits" under pensions legislation. The decision has been an unusually long time coming, with the original High Court judgment given in May 2008 and the Court of Appeal hearing taking place last summer. The potential significance of the case can perhaps be gleaned from the fact that the DWP felt the need to intervene in, and to pay the costs of, the appeal.

The facts

The scheme in question was initially a conventional final salary scheme before being restructured to add different tiers of defined contribution benefit. The company went into administrative receivership in 2003, and the scheme then went into winding-up in the same year.