New Guidance Published on the Calculation of Pension Loss in Tribunal Cases

The principles for compensating pension loss are based on five concepts: justice, simplicity, proportionality, pragmatism and flexibility. The principles are designed to operate by reference to certain key concepts:

• establishing the age at which the claimant will retire from the workforce (where that is relevant to the calculation of their compensation)
• explaining the difference between gross and net income when assessing both loss of earnings and loss of pension rights
• explaining the operation of the new state pension system introduced in April 2016
• identifying a category of 'simple' pension loss cases and explaining how loss will be calculated in such cases
• identifying a category of 'complex' pension loss cases and explaining how loss will be calculated in such cases

In addition, the principles also contain links to useful websites and substantial appendices to give the parties as much assistance as possible.

It is worth noting that these principles do not have the force of law and are not rigid rules. Parties are therefore free to make submissions based on their own calculations for the tribunal to consider, rather than following the recommend approach.

For more information, please contact Michael Halsey, in the Employment Law team, on 020 7665 0842.