Bank Fails In Attempt To Attach Pension Funds

Author:Mr Paul Glenfield, Brian Buggy, John Dunne and Bryan Dunne
Profession:Matheson
 
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The principal issue for the Commercial Court to determine in the case of EBS Building Society v Thomas Hefferon and Michael Kearns, was whether the pension funds of the applicants or any payment thereunder to them in the future was amenable to attachment by way of appointment of a receiver by way of equitable execution. The applicants are members of small self-administered occupational pension schemes, established under trust. They have not yet retired and no benefits have been paid out of their respective schemes. In March 2012, the bank succeeded in appointing a receiver by way of equitable execution over the applicants' pension funds. The receiver's appointment was appealed to the Commercial Division of the High Court. McGovern J. accepted the applicants' argument that for a receiver to be appointed by way of equitable execution the asset in question must be capable of assignment or not otherwise inalienable. He also accepted the fact that the rules of the pension funds in question expressly provided that the benefits payable from them were not capable of assignment. In deciding for the applicants McGovern J. confirmed that the nature of the trust...

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