In Arcadia Group Pension Trust Ltd v Smith [2025] EWHC 11 (Ch), Master Marsh (sitting in retirement) has approved the merger of the Staff and Executive Schemes of Arcadia Group, both of which were in winding-up after the principal employer went into administration and then into liquidation. The need to seek the Court’s approval arose because of the proposed exercise of the amendment power of the Staff Scheme during the winding-up. The Master was satisfied that the amendment power was wide enough to enable it to be exercised. The power expressly provided that it continued until the scheme had been wound up and that it could be exercised by the trustee without the need for principal employer consent where the employer was in liquidation. There was accordingly no scope to imply any fetter on the use of its operation in the circumstances of the case. The Master was also satisfied that the merger was a proper exercise of the power, even though adding members of the Executive Scheme to the Staff Scheme would enable the members of the former scheme to benefit from the surplus in the latter scheme.
A transcript of the judgment can be found here.
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