High Court rules regarding employer liability

Posted on Aug 10, 2010

The Pilots National Pension Fund v Geoff Taylor and others

The long awaited High Court ruling in the above case states that where, before 6 April 2008, an employer in a multi-employer final salary scheme ceased to employ any active members, an employer debt will be triggered even if the employer continued to employ deferred or pensioner members.

However, no debt will arise if the employer had employees eligible to join the scheme. In this case the employer will remain liable for contributions to the scheme under the statutory scheme funding provisions.

Whilst this case will bring some clarity to a complex area, it may create problems for employers who had adopted different views before the law changed in 2008.