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Case notes: Kemble v Hicks - In re Scientific Investment Pension Plan (High Court (Chancery Division))

United Kingdom
28/01/1999
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Kemble v Hicks

In re Scientific Investment Pension Plan (High Court (Chancery Division))
February 1998

This case concerned the validity of a forfeiture clause following the bankruptcy of a scheme member. It was held that a rule in a pension scheme which provides that a member's interest is determinable upon the happening of some event (such as a member's bankruptcy) is effective. However, a rule which purports to grant an absolute interest to a member, coupled with a provision to forfeit the interest on bankruptcy, will be void.

In interpreting pension scheme rules, the court's approach should be practical and purposive rather than detached and literal. Therefore, even the rule of this scheme which stated that 'if any ... event shall happen whereby [any benefit] if belonging absolutely to the member would be vested in ... any other individual, firm or company, the Member shall forfeit all rights whatsoever' was effective.

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