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Defined-benefit pension compensation claim decision overturned by Court of Appeal

The Court of Appeal has overturned a tribunal decision concerning a woman claiming unfair dismissal compensation for the loss of her defined-benefit pension.

In the case of Roberts vs Aegon UK Corporate Services, the company successfully appealed against the decision made by the Employment Appeals Tribunal (EAT) because the tribunal saw the defined-benefit pension to be part of an overall remuneration package rather than a one-off benefit.

Faith Dickson, a partner at law firm Sacker & Partners, said: "It is not surprising to see a case like this hitting the headlines now, with pensions profile higher than they have ever been.  For a long time there has been scope for tribunals to include pension loss in compensation, so I think this case probably indicates less a change of law and more a change of focus."

Although Roberts did find new employment, the pension was a substantial factor in the EAT's original decision because her new employer offered only a defined-contribution arrangement.