Pensions in 30 Podcasts, episode 27: Termination of employment and pension losses

By Ian Chapman-Curry

Key Points

  • Calculating pension loss can be complex, especially where the employee was in a defined benefit pension scheme.
  • The Employment Tribunal service published a 2003 guidance note which suggested two methods for approximating pension loss without the need for actuarial advice, but this guidance has now been withdrawn.
  • During April and May 2016, the President of the Employment Tribunals (England and Wales) consulted on a new approach to calculating pension loss. The response to this consultation is awaited.
  • In higher value cases, the parties may wish to take actuarial advice on pension loss. In the context of a negotiated exit, there are several ways to compensate for pension loss.
  • The cooperation of the pension scheme administrators or trustees may be required to implement some of these…