Bridging pensions


Produced in partnership with Wyn Derbyshire of gunnercooke LLP
Practice notes

Bridging pensions


Produced in partnership with Wyn Derbyshire of gunnercooke LLP

Practice notes
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This Practice Note contains references to case law of the Court of Justice of the European Union. For guidance on whether EU judgments are binding on UK courts, see Practice Note: Assimilated law — Assimilated case law.

What are bridging pensions?

Bridging pensions are a form of pension provided by some (but not all) defined benefit occupational pension schemes in circumstances where a member’s scheme pension commences before state pension age (SPA). As the name suggests, bridging pensions are a form of temporary 'top-up' pension intended to 'bridge the gap' between the date on which the relevant member's 'normal' scheme pension comes into payment, and a later date, typically the member’s SPA when their state pension commences.

Unequal SPAs for men and women and bridging pensions—how they interact

Until plans were considered by the government to equalise the SPAs for men and women in 1993, men had continued to enjoy an SPA of 65 and women 60. Bridging pensions are commonly found where they are used in an attempt to ensure male and female members with differing

Wyn Derbyshire
Wyn Derbyshire

Partner, gunnercooke LLP

Wyn is a partner at gunnercooke LLP and specialises in pensions, trust and employment law in all industry sectors, dealing with the transactional, advisory and documentation aspects.

He also has wide experience of the pensions implications of heavyweight corporate transactions and flotations, the issues arising from the establishment and merger of pension schemes, and sex equalisation and other discrimination issues in respect of benefits provided by pension schemes. In addition, he provides advice to pension scheme trustees generally.

Recent transactions include advising Amcor on pension matters relating to the acquisition of Alcan business and the acquisition of Northern Foods PLC by Boparan Holdings.

He is a co-author (with Stephen Hardy and Stephen Maffey) of TUPE: Law and Practice, published by Spiramus Press (now in its 4th edition), and co-author (with Stephen Hardy and David Wicks) of Money & Work, published by Spiramus Press in August 2007. He has also written several other books and numerous articles on a variety of legal and non-legal topics.

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Jurisdiction(s):
United Kingdom
Key definition:
Bridging pension definition
What does Bridging pension mean?

Temporary pension sometimes paid to members who retire before state pension age to fill the gap between retirement and the start of the state pension.

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