UK - The House of Lords has rejected KPMG's claim that it was not obligated to meet its pensions shortfall because it was a money-purchase (DC) scheme.
The ruling will come as welcome news to members of the KPMG scheme, as it means KPMG has a statutory obligation to fund the deficit in the DB scheme.
The House of Lords rejected KPMG's application for permission to appeal from the Court of Appeal's judgement, and decided the appeal did not raise an arguable point of law of general public importance, meaning the case has finally reached conclusion after three years.
The City law firm Pinsent Masons acted for the pensioners of the scheme, following High Court and Court of Appeal proceedings to establish whether it was a DC or DB scheme.
The Court of Appeal also held in favour of the pensioners in finding that the rules of the scheme did not allow pensions in payment to be reduced, overturning the High Court's decision on this point.
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