Will a settlement agreement affect my pension?

The settlement agreement should expressly set out what will happen to your pension. If your employment is ending under the terms of a settlement agreement, then typically any payments made by your employer towards your pension will stop when your employment ends. You or your employer should notify the pension company that your employment has ended. Make sure you agree with your employer who will make that contact, and ask for details in writing of what your options are in respect of your pension fund.

With regard to an occupational pension scheme, it is the trustees of the pension scheme who owe any rights the employee may have with respect to the pension, and not the employer. Generally it is not possible for an employee to waive their accrued pension rights, except in limited circumstances. But as the trustees are not normally a party to the settlement agreement, they are not bound by the terms of the settlement agreement anyway.

Normally, the right to bring a claim for accrued pension rights is specifically protected in settlement agreements. Your independent advisor should be looking out for this. But it is definitely a topic you can raise in our free initial consultation.

To book an appointment, or find out more about the support and advice we can give you in this matter, please call 0800 304 7255.


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