Split pension overruled

A high court judgment has allowed an employee to claim his full pension at age 60 years despite accruing the
payment on split terms. The case, Foster Wheeler v Hanley, referred to an employee whose defined benefit (DB)
pension accruals were split, part age 60 years and part age 65, following the Barber ruling in 1990. The judge heldthat the “split pension” regime should not apply, even though the scheme’s early retirement rule required employer consent. The additional liabilities for the Foster Wheeler Pension Plan are estimated to be between £18m and £30m and could have funding implications for other DB schemes.