RETIREMENT BENEFITS : EMPLOYEES LESS PROTECTED AGAINST AN EMPLOYER'S INSOLVENCY.

In its nuanced judgement, the EU Court of Justice recognises that member states themselves are not obliged to finance rights to old-age benefits under supplementary pension schemes in the event of the employer's insolvency. It also recognises that an inadequate level of protection of such rights, as is the case in the United Kingdom, infringes Community rules and, in certain conditions, can engage the state's liability (judgement of 25 January 2007, Robins and others, Case C-278/05).

The case submitted to the Court concerned 836 employees of ASW Limited, among them Mrs Robins, who were members of pension schemes funded by their company. When the schemes were terminated - after which the company was wound up - they had the unpleasant surprise of learning from the account managers that "there will be...