Setting things straight on rectification proceedings

Table of contents

• Original news
• What were the issues before the High Court?
• What conclusions did the High Court reach and what were its reasons?
• Construction of the increases rule
• Scope of AJA 1985, s 48
• Notification to scheme members
• What are the implications of the High Court’s decision for trustees and sponsoring employers of occupational pension schemes?
• Will the judgment encourage other pension schemes to go down the construction rather than rectification route to deal with mistakes in pension scheme documentation?

Article summary

Pensions analysis: Henry Day, a barrister at Radcliffe Chambers, considers a recent High Court decision that provides a useful reminder of the availability to trustees of the section 48 procedure under the Administration of Justice Act 1985 (AJA 1985) and of its potential value as a time- and cost-effective alternative to construction or rectification proceedings, where a mistake has been made in the drafting of pension scheme documents.