Employment Tribunal Determines Method Of Calculating Pension Loss In Successful Unfair Dismissal Case

• Published date: 11 August 2023
• Subject Matter: Employment and HR, Retirement, Superannuation & Pensions, Unfair/ Wrongful Dismissal, Employment Litigation/ Tribunals
• Law Firm: Norton Rose Fulbright
• Author: Lesley Browning and Shane O'Reilly

When calculating the future pension losses for a successful claim for unfair dismissal, the Employment Tribunal ruled in Jhuti v Royal Mail Group that it was appropriate to use the Ogden tables 3-18 (multiplier for loss of earnings).

These are the tables used to help actuaries, lawyers and others calculate the lump sum compensation due in personal injury and fatal accident cases but are also used to calculate the cost of lost pension rights.

The case involved a DC scheme, and the Tribunal held that if it simply added up the value of all future contributions, without applying the discounts catered for by the multipliers in the Ogden tables (which considered the factors relevant for calculating future loss of earnings such as mortality and accelerated receipt), overcompensation could...