Police and Crime Commissioner for Greater Manchester v Butterworth

Pension – Compromise agreement. The Chancery Division, in allowing an appeal by the Police and Crime Commissioner for Greater Manchester, held that, on the true construction of a clause in a compromise agreement made by the claimant and her former employer, the Commissioner's predecessor, the Commissioner was under no contractual obligation to provide the claimant with access to an unreduced pension at age 55. The court held that the Pensions Ombudsman's finding of maladministration flowed entirely from his erroneous interpretation of cl 4.2 of the compromise agreement as an unconditional promise by the authority to procure an unreduced pension for the claimant at age 55, which it had had no power to give. Once cl 4.2 was correctly understood as a promise by the authority to confer only such benefits as were within its lawful power to provide, the basis of the Ombudsman's finding of maladministration fell away.

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