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Under an unfunded unapproved retirement benefits scheme, an employee and their employer had agreed that a pension of £85,000 a year would be paid. Instead, a lump sum of £1.4m was paid to the employee
Several years ago our client entered into a deed constituting an unfunded unapproved retirement benefits scheme (UURBS) arrangement with his employer a large UK listed company. The arrangement was that the company would accrue and pay over a pension of £85 000 per year from our client’s 62nd birthday.
When the appropriate date was approaching the company made quite a low offer to settle its obligations under the scheme. This was rejected and following a period of negotiation a settlement agreement was drawn up under which all parties agreed to a fixed sum of £1.4m in full and final settlement of all claims arising in connection with the original deed.
The payment has been made to our client after deduction of employer’s and employee’s National Insurance contributions but with no deduction for any income tax.
Readers’ views would be welcome on whether this payment...
