The duty of employers to act in good faith towards employees – a duty established in relation to employment contracts – applies equally in relation to the way in which an employer exercises its powers under a pension scheme.

A pension scheme has a term implied into it “that the employers will not, without reasonable and proper cause, conduct themselves in a manner calculated or likely to destroy or seriously damage the relationship of confidence and trust between employer and employee”.

The duty extends to all the members of the pension scheme, including former employees as well as current employees…