Compliance developments impacting benefits in June

The Employment Appeal Tribunal (EAT) has returned a case to a tribunal for a re-hearing to consider whether redundancy dismissal, where the timing meant an employer avoided significant pension costs, could amount to age discrimination.

Compensation received by an employee to settle a discrimination claim is not taxable as earnings, a tribunal has ruled. The case involved a dispute over whether a payment of £600,000 made under a compromise agreement should be taxed as ‘earnings’ or whether it could be paid tax free.

The Queen confirmed in her state opening of Parliament that legislation will be brought forward by government to ensure there are no rises on income tax, value-added tax (VAT) or national insurance for five years.

The High Court ruled that a pensions top-up arrangement set up to provide security for unfunded pensions promises for four ex-directors at Granada Group did not require shareholder approval to be considered viable.

The European Insurance and Occupational Pensions Authority (EIOPA) launched its pensions stress test and quantitative assessment on solvency for Institutions for Occupational Retirement Provision (IORPs).