Pensions in 30: 19. Extrinsic contracts

The Month in Pensions - Gowling WLG

Key points

• The employer and members of a scheme can contractually agree that the member's entitlement under the scheme will be different to that under the scheme rules
• The case of South West Trains v Wightman established that such "extrinsic contracts" could be effective
• Extrinsic contracts cannot affect benefits which it is agreed have been earned by members' employment before the extrinsic contract is concluded, because of section 91 of the Pensions Act 1995
• Extrinsic contracts can be useful for employers looking to make changes to future pension benefits but they should always be used with care and only after taking legal advice

You can find this episode and the accompanying transcript on our website: https://gowlg.co/3x71dMb

Gowling WLG is an international full-service law firm working across a range of industry sectors including real estate, government, financial services, life sciences and technology. We operate across the world with offices in the UK, Europe, Canada and the Middle East.

We regularly talk about a broad range of topics that may be of interest to you. Subscribe to receive our latest articles, podcasts and webinars straight to your inbox: https://gowlg.co/35efH2r

Alternatively, you can view our full selection of insights and resources here: https://gowlg.co/3IwEr41

Want to get to know us? Follow us on:

LinkedIn: https://gowlg.co/3hqmatB Twitter: https://gowlg.co/35Do0nY Facebook: https://gowlg.co/3th2w8N Instagram: https://gowlg.co/3tEf2iq

This podcast may contain information of general interest about current legal issues, but does not give legal advice.