High Court Rules Pension Scheme Closure Effective

The High Court has found that the closure of the Wedgwood Group Pension Plan to the future accrual of benefits in June 2006 to have been effective. The Wedgwood Plan is in a PPF assessment period and if the closure had been ineffective the compensation payable to members employed after June 2006 would have been increased.

The closure of the Wedgwood Group Pension Plan ("the Wedgwood Plan") had been carried out by notice under Rule 62 of the 2001 Rules.  Rule 62 provided that a Participating Company "can stop contributing in respect of all or some of its employees by giving written notice to the Trustees" and that the members affected would then be treated as having left Pensionable Service.