CHANCERY DIVISION
ON APPEAL FROM
THE DEPUTY PENSIONS OMBUDSMAN
Fetter Lane, London, EC4A 1NL |
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B e f o r e :
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Rev Dr Timothy Langdell |
Complainant /Appellant |
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- and - |
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Abbey Life Assurance Company Ltd |
Respondent |
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Crown Copyright ©
Mr Justice Nugee:
Introduction
Facts
"On retirement the amount of any outstanding loan will be deducted from the Tax Free Cash Sum…"
The proposed appeal
"Any reduction of benefits as a result of foreclosure will be first effected against any lump sum retirement benefits payable.
The restriction on the director's lump sum retirement benefits will be lifted to the extent of the amounts recovered by the scheme trustee(s) under the rights acquired as a result of the foreclosure."
Dr Langdell wished to argue on appeal that the second limb of para 16.75 applied to his case because Abbey Life had "recovered" the sum of £8,863 in 1991 and the restriction should therefore be lifted.
"The reduction of the controlling director's benefits will be lifted to the extent of the amounts recovered by the scheme trustees from the employer under the rights acquired after foreclosure. To avoid a restriction to the lump sum retirement benefits the amounts paid must be recovered before the lump sum retirement benefits are paid."
The application to reconsider
"If the money is not received, in accordance with Clause 4 Paragraph (ii) of the Loan Agreement, Abbey Life Assurance Company Limited will apply the money held in the Sterling Account to discharge the loan."
"If the money is not received, in accordance with Clause 4 Paragraph (ii) of the Loan Agreement dated 1 March 1989 between the Trustees and Abbey Life Assurance Company Limited, the latter will apply the money held in the Sterling Account to discharge the loan."
(textual differences from the first letter highlighted by me in bold).