Ian Pickles considers four issues affecting pension loss claims for employed claimants in personal injury cases
Pension losses are often an important element of a personal injury claim. Generally, a pension loss will only arise if the following two conditions are met:
- The claimant is an active member of a pension scheme at the time of the accident (but see below); and
- The impact of the negligence/accident on the claimant’s earnings is such that the claimant’s pension is affected by a reduction in their working life and/or level of pensionable earnings.
People need to realise that a large pension loss claim requires a large pension—something only a lucky few have.
Changes to defined benefit schemes
Public sector pension schemes (NHS, local government, civil service and education) together with the armed forces, police and fire service pensions are changing with effect from April 2015.
The calculation of the accrued pension benefits at April 2015 may result in deferred/preserved pension payable at different ages before state pension age, making the calculations even more complex.
Very few claimants outside the public sector are in defined benefit
