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Breach of contract - tribunal success chances?

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  • SarEl
    SarEl Posts: 5,683 Forumite
    My employer has recently decided to change the final salary pension arrangements. They have effectively frozen pensionable pay at 2010 salaries. They have gone through the necessary consultation and now decided to make the change. They have offered alternatives but all are significantly inferior to the scheme I am / was on.

    The rules of the pension scheme are pretty clear to me and says that the employer cannot make changes that in effect make employees worse off than they were before the change - this was set-up intentionally some time ago to protect the pension fund from potential asset strippers.

    I recognise the company needs to be able to make whatever changes it needs and I'm not seeking to challenge their rights but I do believe they have introduced a change to my contract that I would like to reject and agree termination or challenge for constructive dismissal.

    If I did go to tribunal would the decision be based on purely legal interpretation of the terms of my employment or would political considerations carry any weight e.g. previously in privileged position and many similarly suffering?

    Changes to a pension scheme are governed by the rules of the pension scheme - tribunals have no jurisdiction over them. If you were to resign over this you would quite certainly loose a claim of constructive unfair dismissal. But yes, if others accept a change to a contractual provision (and the pension scheme rules are not a contractual provision) then a tribunal will take that into account when considering the outcome.

    If you believe the employer has broken the terms of the pension scheme then you shoulkd report it to the Pensions Ombudsman.
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