- Rescission of member's entitlement to pension lump sum on grounds of mistake (JTC Employer Solutions Trustees v Khadem)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Pensions analysis: The court rescinded the defendant's entitlement to a lump sum of over £6m from his former employer's pension scheme on the grounds that the agreement to pay the lump sum was based on a fundamental mistake. The claim was brought by the professional trustee of the pension scheme which argued that there was a potential breach of trust if the agreement to pay the lump sum was not set aside. The court held that the agreement could be rescinded even though the claimant had suffered no financial loss. Although HMRC was not a party to the proceedings, the court to considered a letter written by one of its senior lawyers in which HMRC argued that the court should not grant rescission because there were not the necessary factors of seriousness, causative effect and unconscionability. Written by Max Ballad, a legal director at Arc Pensions Law LLP.
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