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ARTICLE · 04 MAY 2018

Top Tips On Pensions And Settlement Agreements

Gowling WLG
Gowling WLG
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Gowling WLG

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We cover some of the issues around drafting pension provisions for settlement agreements in our back to basics article. Here our combined human resources solutions (CHRS) team...

United KingdomEmployment and HR

We cover some of the issues around drafting pension provisions for settlement agreements in our back to basics article. Here our combined human resources solutions (CHRS) team look at some top tips that private sector employers should take to ensure that both the drafting and the execution of any employer obligations under a settlement agreement go smoothly and minimise ongoing risk and exposure.

These tips address settlement agreement packages involving defined contribution/money purchase pensions only - if you have an employee with defined benefit pension entitlement we recommend you take specialist legal advice.

1. Think about the pensions provision early on

Pensions can often get left until quite late in the day when it comes to settlement agreements as they can be viewed as an "ancillary" benefit. However, thinking about this particular benefit early on will allow you to do sufficient due diligence on what pension arrangement the employee is

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