Pensions: Disputes can be compromised


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Posted on 12 Jan 2011

In International Group Management Group (UK) Limited v German and anor, the Court of Appeal has found that pension rights disputes can be compromised. 

Section 91 of the Pensions Act 1995 provides that any agreement to surrender a pension entitlement or right to a future pension under an occupational pension scheme is unenforceable.  It was therefore questionable whether or not this meant that the compromise of a pensions dispute was enforceable.  The Court of Appeal has held that s.91 does not apply to disputes over whether rights exist and is limited to rights and entitlements to future benefits. 

The court unanimously concluded that s91 does not prevent the parties from making, or the court from approving or enforcing, a bona fide compromise of disputed or doubtful entitlements or rights under an occupational pension scheme.

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