Pensions Cap For UK Early Retirees Is Unlawful, Court Rules

Law360, London (July 19, 2021, 2:11 PM BST) -- The Court of Appeal ruled Monday that the compensation fund for pensions cannot impose an age cap on early retirees from companies that collapse, saying that it was unlawful for them to be treated differently from employees who had hit retirement age.

Appellate judges found in a 70-page decision that the Pension Protection Fund's cap on compensation illegally discriminated against workers who retired early less favorably than for those who had waited until their retirement date.

The cap is in breach of a 2018 ruling by the European Court of Justice, which meant European Union members had to offer 50% compensation...

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