What is a Part 8 claim?

A Part 8 claim is a court process for resolving doubts or uncertainties where the underlying facts are clear. It is more streamlined than Part 7 claims that involve legal pleadings, the disclosure of documents, and factual and expert witnesses. It is so called because it is a claim under Part 8 of the Civil Procedure Rules.

When can you use Part 8?

In a pensions context, most cases brought to court are Part 8 claims. Usually this is because an uncertainty has been identified in the administration of the scheme which needs to be resolved by a court order.

Bringing a claim under Part 8 can be a useful way of resolving issues and uncertainties in the following contexts:

  • Doubts about the validity of scheme documents such as:
    • whether a deed has been properly executed; or
    • whether the requirements of the scheme's power of amendment, section 67 of the Pensions Act 1995 or section 37 of the Pension Schemes Act 1993 have been met.
  • Doubts about the meaning of provisions in scheme rules or legislation such as:
    • how pensions should increase in payment or be revalued in deferment;
    • how the employer contribution rule operates and the level of scheme funding trustees can seek from the employer;
    • whether members can rely on scheme booklets or announcements or otherwise prevent employers or trustees applying the scheme's strict rules in paying benefits.
  • Doubts about whether scheme rules reflect what the employer and trustees originally intended or how the scheme has been administered. In appropriate cases, the court can rectify the wording of scheme rules so that it is consistent with what the parties to the rules intended.
  • Doubts about whether the scheme has complied with statutory requirements on such matters as:
    • the equalisation of male and female normal pension ages;
    • the preservation of the value of members' benefits.
  • Doubts about whether the trustee would be acting in accordance with its duties in administering the scheme in the way in which it is minded to do.
  • Trustees might want court 'blessing' (via a 'Beddoe' application) before using scheme assets on other more adversarial litigation, such as claims against professional advisers or as to whether to settle such claims at a given level.

The structure of Part 8 proceedings

There is flexibility in the Part 8 procedure which enables the court to:

  • give a judgment after a fully argued trial if it has not been possible to resolve the uncertainties by agreement between the parties to the Part 8 claim;
  • give a judgment that resolves the underlying issues without a trial being necessary because there is no argument between the parties as to what the correct outcome should be;
  • give directions as to how the trustees should administer the scheme, thereby protecting them from potential breach of trust claims;
  • approve a compromise that the parties to the Part 8 claim have agreed;
  • decide a case on paper without any attendance required before the court;
  • approve a compromise agreed by the parties.

The parties to Part 8 claims

Parties to a Part 8 claim are often the employer(s), the trustees and a representative beneficiary who is appointed to look after members' interests. This ensures that everyone involved is bound by the court's judgment. In a case like that, the trustee will often be neutral, with the key issues being argued out by the legal teams for the employer and the representative beneficiary.

Sometimes, it is possible to streamline the Part 8 claim so that only the employer and trustees are parties, the trustees agreeing to act for affected members.

Part 8 claim cost fees

Sometimes, it is possible to streamline the Part 8 claim so that only the employer and trustees are parties, the trustees agreeing to act for affected members.

If you have any questions about the information above, or about Part 8 claims in general, please contact Ian Gordon or Aaron Dunning-Foreman from our Pensions Disputes team.