Irish court lets employer walk away from DB liabilities

By contrast to UK law, Irish law does not restrict the right of a solvent employer of a DB scheme to terminate its contribution liability without first making good any shortfall in the scheme. In Amcor Pension Trust (Ireland) Co Ltd v Amcor Holding No. 1 Ltd [2025] IEHC 176, the Irish High Court permitted an employer to exercise its right under the scheme rules to terminate its liability on immediate notice, refusing to imply a term requiring the employer to give the trustee reasonable notice so that it may require the employer to meet the scheme deficit. While of limited interest to UK pension lawyers, it demonstrates that, despite the Court’s sympathy for the consequences of its decision for the members of the scheme, that did not permit the rules to be re-made in order better to protect their interests.

A transcript of the judgment can be found here.