The judgment by the Court of Appeals to overrule a decision made last year by a tribunal has shifted the focus of pensions law, says Faith Dickson, partner at Sacker & Partners LLP.

The case, Roberts v Aegon UK Corporate Services, relates to an unfair dismissal victim's compensation for the loss of her defined benefit (DB) pension.

In February 2008, a London Central Tribunal ruled that Ms Roberts, a former employee at Aegon, be awarded compensation for an unfair redundancy dismissal to the sum of £38,353.56, which was then reduced to £37,188.30 following a review of the award carried out by the Tribunal.

The decision was made based on the pension loss calculated in relation to her losses up to the date of the Tribunal's assessment, and continuing thereafter. Ms Roberts then took up a position at Just Retirement Limited, which offered a money purchase scheme, bringing the original Tribunal to conclude that her employment there brought an end to any possible loss of earnings claim. However, they added that there was a continuing pension loss due to the different nature of the pensions, and calculations were made accordingly.

The Tribunal hearing stated: 'It is unlikely that the Claimant will find employment that will offer a final salary pensions. It is more likely that any pension arrangements in her new employment would involved a money purchase scheme. That accords with our understanding of the trend in the provision of pensions and is supported by Mr Nicoll's evidence,' an employment expert who gave oral evidence at the original Tribunal.

Dickson added: "It is not surprising to see a case like this hitting the headlines now, with pensions higher profile 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."

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