Creditors’ ability to obtain payment from personal pension funds (Zubarev v Singh)
Pensions analysis: The claimants sought to enforce judgments against the defendants out of personal pension funds held by third parties. They applied for a third party debt order, together with an order under section 37 of the Senior Courts Act 1981 (SCA 1981) that the defendants take any necessary steps to draw from the funds the benefits to which they were entitled. When the applications were made, the third parties did not hold money for the defendants. Interim orders were made, but the court held that a third party debt order could not be made until the relevant third party held money which was owing to a defendant and the appropriate course was to apply first for an order under section 37. The court was not constrained by concerns that the effect of the order would be to restrain the debtor from receiving the pension, a point which arises in relation to occupational pension schemes. Written by Elizabeth Ovey, barrister at Radcliffe Chambers.