Change of pension regulations

Case no. BS-24289/2018-HJR
Judgment delivered on 21 February 2019

A and B
vs.
Pædagogernes Pension – pension fund for educators

By virtue of A's job as an educator, A had a labour market pension scheme in the pension fund Pædagogernes Pension. The scheme was provided for in A's collective agreement and gave members the right to both retirement pension and life-long spouse's pension in case of death. With effect from 1 January 2014, Pædagogernes Pension decided – with the consent of the parties to the collective agreement – to perform a complete overhaul of the pension fund's pension schemes. As a result, A lost the right to life-long spouse's pension under the previously applicable pension regulations. Instead, the new pension scheme meant that the amount payable on death before retirement was significantly increased, and a new lump sum payment on death after retirement due to age was introduced (to be phased out after 10 years). A's pension savings (in custody) were not affected by the change.

The case concerned the issue of whether the pension fund had been entitled to make such change to A's labour market pensions scheme.

Referring to the grounds cited by the High Court, the Supreme Court agreed that the change to A's labour market pension scheme was not invalid and that there was no basis for awarding A and B compensation by reason of the change.

The Supreme Court, thus, reached the same conclusion as the High Court.