8th Edition Of The Ogden Tables Published
Published date | 06 September 2020 |
Subject Matter | Employment and HR, Litigation, Mediation & Arbitration, Discrimination, Disability & Sexual Harassment, Retirement, Superannuation & Pensions, Personal Injury |
Law Firm | Clyde & Co |
Author | Ms Jodie McAuley |
The long-awaited 8th edition of the Ogden Tables has now been published by the Government's Actuary Department ("GAD"), nine years after the 7th edition in 2011 (although supplementary tables were published following the Discount Rate changes on 20 March 2017).
The Ogden Working Party oversees the preparation of the Ogden Tables which are used to calculate lump sum compensation due in personal injury and fatal accident cases. The multipliers derived by the tables take account of mortality and other risks, and are calculated by reference to the discount rate.
The tables have been revised in the 8th edition to use updated mortality assumptions; the multipliers in this edition are based on mortality rates from 2018-based projections, whereas the 7th edition was based on 2008-based projections. This has resulted in a reduction in the lifetime multipliers for men and more so women. The biggest impact on life expectancy between the 7th and 8th editions is for older claimants where the difference in predicted life expectancy is as high as 8-9%.
With respect to earnings, the tables now cover a wider range of retirement ages. Tables for men and women to retirement age 68 and 80 have been introduced. Section B of the explanatory notes for contingencies other than mortality has been revised. Of particular note:
- The 3-limb test of disability has changed and now includes the definition of disability from the Disability Discrimination Act 1995 rather than the Equality Act 2010 definition.
- The education classification has been amended.
- There are amendments to the discount factors in Tables A to D.
- There is more detailed guidance as to when it might be appropriate to adjust...
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