The Supreme Court Issues Its First Decision About Pensions

On 27 July 2011 the Supreme Court issued its first decision on a pensions case in Houldsworth and Anor v Bridge Trustees Limited & Anor and the Secretary of State for Work and Pensions. The Secretary of State for Work and Pensions appealed against the Court of Appeal Decision in Bridge Trustees v Yates which had previously decided that benefits calculated either set investment returns under a notional investment fund and pensions calculated by reference to actuarial factors set by the scheme did not stop those benefits from being "money purchase benefits".

The Supreme Court rejected the application of the Secretary of State and upheld the decision of the Court of Appeal that these benefits were in fact "money purchase benefits". In this case the point was important because of the provisions of section 73 of the Pensions Act 1995 (winding-up) prevented monies contained within those "money purchase" accounts being used for the general purposes of winding up any DB