Meyer v Iscor Pension Fund

Cedric Meyer, a long-serving employee of Iscor and member of the Iscor Pension Fund, took early retirement in July 1993 at age 51 due to impending retrenchment. His pension benefits were reduced under rule 6.2 of the Fund’s rules, which imposed a 0.4% reduction per month for early retirement before age 63. In September 1993, shortly after his retirement, the Fund amended rule 6.2 on a temporary basis to encourage early retirement by allowing certain members aged 50 or older who retired in late 1993 or early 1994 to receive enhanced benefits without the reduction and with increased pensionable service. Meyer was excluded because he had already retired. He challenged this exclusion, alleging unfair discrimination and maladministration by the Fund.

The appeal was dismissed and the order of the High Court setting aside the Pension Funds Adjudicator’s determination was upheld.

The case clarifies the limits of unfair discrimination and legitimate expectation claims in the context of pension fund rule amendments. It confirms that pension funds are bound by their rules, that former members generally have no claim to benefits introduced after their exit, and that trustees enjoy wide discretion in amending rules, subject to proper exercise of their powers.