KNOWLEDGE

Calculation of Pension Loss in the Employment Tribunal

Morton Fraser Partner Lindsey Cartwright
Author
Lindsey Cartwright
Partner
PUBLISHED:
28 August 2017
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category:
Article

New guidelines on the calculation of pension loss for the purpose of quantifying losses in employment tribunal claims has been published.

Calculation of pension loss - one of the heads of loss for which tribunals routinely compensate successful tribunal claimants - can be tricky, particularly if the loss relates to a defined benefit scheme (i.e. a final salary or career average earnings scheme).  Guidance on how to calculate pension loss was published in 1991 by the Employment Tribunal. However, in March 2015 the guidelines were declared out of date and were withdrawn.

After a period of consultation "Employment Tribunals: Principles for Compensating Pension Loss" has been published along with guidance from the Presidents of the Employment Tribunal on the "Principals for Compensating Pension Loss" and a response to the consultation.

As with earlier guidelines, the principles and guidance do not have the force of law. However, they will hopefully provide some assistance to claimants, respondents and their advisors in accurately quantifying claims. 

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