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Virgin Media v NTL Trustees: Court of Appeal confirms actuarial confirmation required for s 9(2B) amendments, including future service; industry impact and potential DWP retrospective fix (England and Wales)

Published on: 02 August 2024

Published by a LexisNexis Pensions expert
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Judgment and case digest: Virgin Media Ltd v NTL Pension Trustees II Ltd [2024] EWCA Civ 843, [2024] All ER (D) 118 (Jul)

Background: Ensuring that contracted out schemes remain sufficiently generous

From 6 April 1997 to 5 April 2016, certain salary-related schemes could contract out, meaning members did not accrue some State Pension rights and both they and their employers paid reduced national insurance contributions. In return, those schemes had to offer benefits at least matching a prescribed ‘reference scheme’, serving as broad compensation for the State Pension foregone. Where a scheme first contracted out on or after 6 April 1997, the scheme actuary demonstrated adequacy by certifying that the reference scheme test was satisfied. After that point, and broadly every three years, the actuary had to revisit this forward-looking assessment—commonly when performing the scheme’s triennial valuation—confirming in the valuation report that the test continued to be met. If, at any stage, the test was not satisfied, the scheme would be required to cease contracting out...

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