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Employment Law

Legal guidance - compliance - software

02 NOV 2012

Proctor & Gamble Company v Svenska Cellulosa Aktiebolaget SCA [2012] EWHC 2839 (Ch); (2012) EMPLR 166

Contract of employment - early retirement benefits - TUPE

23 October 2012

Chancery Division

Hildyard J

The right to enhancements of pensions for those taking early retirement transfer under TUPE but not rights deriving from a deferred pension nor the rights to the early retirement pension in so far as it provided a pension after the normal retirement age.

P&G sold one of its divisions to SCA. P&G agreed to pay SCA a sum equivalent to the value of the early retirement benefits that would transfer under TUPE. Pension benefits in so far as they relate to old age or disability are excluded from TUPE but not early retirement benefits.

The early retirement benefits were:

  • a bridging pension payable up to the normal retirement age to compensate for the lack of state pension; and
  • an enhancement to the pension for those with 15 years' service or more, which would otherwise have been reduced because of early retirement.
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