Survivors' Pensions: Extending The Boundaries?

Up to a third of occupational pension schemes provide the surviving registered civil partner with a survivor's pension based only on the deceased partner's service from 5 December 2005 onwards. This approach looks questionable following the Employment Tribunal decision in December 2012 in Walker v Innospec.

Walker – the facts

Mr Walker joined his employer's pension scheme in 1980 and registered his civil partnership in January 2006. The scheme altered its Rules to provide survivor pensions limited to the member's future service from 5 December 2005.

This would result in Mr Walker as the surviving partner receiving a pension of only £500 per annum (50% of GMP which must be provided back to 1988) whereas a pension calculated on the deceased member's full service would be some £47,500 per annum (estimated capital cost to the scheme, approximately £400,000). The Employment Tribunal decided the latter, full service approach was consistent with the EU Directive and