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Damages: Effect of incapacity pension on damages for pension loss

This report relates to 1 case(s)

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    Longden v British Coal Corporation [1998] IRLR 29 HL (0 other reports)

In Longden v British Coal Corporation [1998] IRLR 29, the House of Lords holds that incapacity pension payments made to an employee under a contributory occupational pension scheme prior to normal retiring age do not have to be set off against personal injury damages in respect of future loss of a retirement pension that the employee would otherwise have received. However, any lump sum which the employee received when he or she was retired prematurely on grounds of ill health should be apportioned, and that part attributable to the period after normal retirement age should be deducted from the claim in order to arrive at the net loss of retirement pension.

During the course of his employment as a colliery deputy, Mr Longden received injuries which resulted in his retirement on medical grounds at the age of 37.