As we have discussed in this blog previously, an employee’s entitlements to any benefits such as pension rights (which will not be provided for in a compromise agreement) will cease on the employee’s Termination Date (see earlier blog).
Some companies are paying employees up to three months’ standard company employer pension contributions into the employee’s pension fund. As pension rights are not included in a compromise agreement, if you are an employee and this has been offered to you, you will need to check your statement of your entitlements under the Pension Scheme when you receive this from the Pension Company and the available options for dealing with those entitlements.
If you have any queries, you should contact the Pension Company for further clarification.
You should also note that your employer will exclude liability in your compromise agreement in relation to payment of pension rights to you as the payment would be administered by your Pension Provider.
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