The NSW Court of Appeal has upheld the CBA’s appeal in the Beck Case. The Court has unanimously held that Mr Beck did not have an accrued right to the discretionary early retirement pension benefit provided by the super scheme.
The Court held that the benefit was “discretionary” in that satisfying the preconditions for the exercise of the discretion did not automatically give rise to an entitlement to the benefit.
Consequently, when the clause which provided the discretionary early retirement benefit was removed by a deed amendment, Mr Beck had no accrued right to the benefit and his accrued rights were therefore not adversely affected by the deed amendment.
While the case involved a defined benefit superannuation scheme, the decision is still relevant for accumulation superannuation schemes as such schemes do provide some discretionary benefits (as such entitlement to insured cover and anti-detriment benefits).
Case citation is [2016] NSWCA 218. The decision was handed down 22 August 2016.
Media enquiries:
Michael Hallinan
Special Counsel
Townsends Business & Corporate Lawyers
p (02) 8296-6205
t @TownsendsLaw
e michael@townsendslaw.com.au
townsendslaw.com.au