Posted by John North, Partner
On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.
“How most British defined-benefit pension schemes have been calculating pensions wrongly for the last 20 years”
Roger May, a pensions solicitor with over 20 years’ experience, at City solicitors Royds LLP, has published a 24 page White Paper called “The Emperor’s New Pension” which explains in detail how most British defined-pension schemes have been calculating pensions …
Roger May, a pensions solicitor with over 20 years’ experience, at City solicitors Royds LLP, has published a 24 page White Paper called “The Emperor’s New Pension” which explains in detail how most British defined-pension schemes have been calculating pensions wrongly for the last 20 years.
In the White Paper, Roger explains how – since most pension schemes changed their rules to observe the Barber case European Court decision in 1990 which held that the retirement age for men and women in pensions schemes had to be equal – most pensions preserve the inequality. Roger explains how a fictitious factor – “normal retirement age” – has corrupted what should be a very simple calculation so that the pensions of most female members of defined-benefit schemes have been overstated.
The White Paper goes back to Article 119 of the Treaty of Rome and explores numerous key equality and discrimination cases, decisions about pensions calculations, Pensions Acts and scheme rules that have led to the current situation. There are worked examples to show where the issue arises from simple and convoluted calculations relating to the “Barber window” and where age discrimination can take place.
Roger says “Employers are in danger of claims from disgruntled male employees who find that women are paid a higher pension for the same period of service. Furthermore, the cost to British employers could run to hundreds of billions of pounds”.
John North, corporate partner at Royds, says “Roger has done an incredible amount of work to set out his argument with various calculations and case studies. Whilst the legal and technical details seem complex, his startling conclusion must be considered by employers, pension schemes and pension trustees”.
If you would like a copy of the document, please email firstname.lastname@example.org indicating whether you would prefer an electronic or printed version.
Pension trustees and employers may contact Roger for further information but if you are a pensioner who believes that your pension has been incorrectly calculated you should contact your pensions administrator in the first instance.
For further information, please contact:
Roger May, Pensions Solicitor
020 7583 2222 email@example.com
John North, Head of Corporate and Commercial
020 7583 2222 firstname.lastname@example.org
Richard Woodman, Head of Employment
020 7583 2222 email@example.com
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