Accrual meaning

Legislation safeguards the pension entitlements of members of occupational pension schemes and other employment‑related benefit arrangements, including workplace personal pension schemes that receive employer contributions, while they are away from work on statutory family leave. Statutory family leave encompasses: maternity leave paternity leave adoption leave parental leave shared parental leave parental bereavement leave carer’s leave Maternity leave Occupational pension schemes are taken to include a maternity equality rule requiring periods when a member is on maternity leave to be treated in the same manner as periods when they are not on maternity leave. This maternity equality rule applies to both paid and unpaid ordinary maternity leave (OML), as well as to paid additional maternity leave (AML). As a result, under this rule, time spent on OML and paid AML in a defined benefit (DB) scheme is recognised as pensionable service...

POWER CLAUSE / RULE HELD BY REQUIRES AGREEMENT OR CONSULTATION WITH SUBJECT TO Authority to amend; to wind the scheme up or delay winding-up; to cease future benefit accrual; to shut to new joiners; to readmit employees to membership of the scheme Discretion to set the employer contribution rate; to lower or suspend contributions; to apportion statutory debts Ability to enhance or vary benefits; to permit early retirement pensions and set actuarial reductions; to allow incapacity pensions, decide whether a member meets the incapacity definition, and reduce or pause such pensions; to grant pensions for serious ill-health; to apply actuarial uplifts for late retirement; to fix the rate at which pension is exchanged for a lump sum; to commute trivial pensions; to provide a bridging pension; to award discretionary increases to pensions; to make unauthorised payments Capacity to admit new employers or end their participation; to replace the principal employer; to transfer members’ benefits into or out of the scheme Authority to return...

Practice Note: Contract interpretation—distinguishing between liquidated damages and penalty clauses As highlighted in this Practice Note, working out whether a liquidated damages provision will be struck down as a penalty is seldom straightforward and often demands careful judgment. Although each dispute turns on the court’s construction of the contract, there are several points to weigh when examining the ambit of a supposed liquidated damages term and its potential exposure to a penalty challenge, both in substance and effect. When you are drafting such a clause, it is vital to keep these considerations in view, and to think about how it sits alongside connected provisions, including any related terms that operate with it. See: Drafting and negotiating a liquidated damages clause—checklist Precedent: Liquidated damages clause For targeted analysis of the way authorities have treated provisions in commercial agreements that stipulate ‘default interest’, see the following materials: Penalty interest rates in commercial contracts Contract interpretation—distinguishing between liquidated damages and penalty...

The panel of justices at the appellate court decided, in a unanimous opinion, that the effort by the BBC to reduce its rising costs in the BBC Pension Scheme (the Scheme) undermined the interests of its members. The dispute focused on interpreting a provision within the Scheme’s governing deeds, which safeguards members from changes impinging on their ‘interests’. Justice Kim Lewison observed that, when considering if an active member possesses an interest in the particular elements of the benefit design challenged in the claim form, his conclusion—mirroring the judge’s—was affirmative. The case was closely fought over this point of construction within the Scheme’s legal deeds in question...

In this issue: Public children Financial provision Private children Court of Protection Daily and weekly news alerts New content Updated content New Q&As LexTalk®Family: a Lexis®Nexis community Useful information Public children Suspected Inflicted Head Injury Service (SIHIS) for children pilot Three NHS Trusts—Manchester University NHS Foundation Trust, Birmingham Children’s Hospital and Sheffield Children’s NHS Foundation Trust—have received funding to launch pilots and evaluate a new Suspected Inflicted Head Injury Service (SIHIS). The service is designed to tackle delays arising from late and multiple expert medical statements. The trial will assess how this model can drive lasting, system-wide improvements that cut delay, with the pilot scheduled to conclude on 31 March 2025... Anonymisation (Re T (Children: Publication of Judgment)) In Re T (Children: Publication of Judgment) [2024] EWCA Civ 697, [2024] All ER (D) 79 (Jun), the Court of Appeal upheld the mother’s appeal against a decision concerning the publication of a...

In this issue: Cases and decisions UK Regulation EU Regulation Cases tracker Dates for your diary Daily and weekly news alerts LexTalk®Insurance: a Lexis®Nexis community Cases and decisions UniCredit Bank GmbH, London Branch v Constitution Aircraft Leasing (Ireland) 3 Ltd; UniCredit Bank GmbH, London Branch v Celestial Aviation Services Ltd. The Supreme Court unanimously rejected the appellants’ appeal and upheld the respondent’s cross‑appeal, deciding that reg 28(3)(c) of the Russia (Sanctions) (EU Exit) Regulations 2019 (SI 2019/855) prevented payments under the letters of credit until UK licences were secured; consequently, both the payment obligation and the accrual of statutory interest were paused. The court also concluded that section 44 of the Sanctions and Anti‑Money Laundering Act 2018 supplies a defence in civil proceedings, which would have protected the respondent from liability for debt, interest and related costs where it reasonably believed it was acting in line with the Regulations, underscoring the public aim of sanctions...

Term Meaning Accounting reference date On incorporation, a company is typically assigned an accounting reference date, being the final day of the month that contains the anniversary of its incorporation. Directors can alter this by submitting the relevant form to the Registrar of Companies. It denotes the end of the annual accounting period and is also called the balance sheet date. Accounts payable Sums a business or individual owes to others for goods or services already received. Accounts receivable Sums due to a business or individual from others for goods or services supplied. Accrual In company accounts, recognition of income earned or costs incurred during a reporting period, even though the cash has not yet been received or paid. Adjusted earnings Where reported earnings are affected, positively or negatively, by exceptional one-off events in the year, directors may present adjusted earnings to clarify performance. These are earnings with exceptional items excluded, which they believe better indicate the underlying results...

This Practice Note This Practice Note examines the Limitation Act 1980 (LA 1980) and sets out the periods within which claimants are permitted to start different kinds of claims. As a rule, any proceedings begun after the relevant limitation window has ended will be statute-barred, affording the defendant a complete defence. It further describes, for personal injury matters, the general principles on when time begins to run, the notion of date of knowledge, and when a court may lift the limitation bar. It also contains a practical checklist of personal injury actions that sit outside the standard three-year time limit. LA 1980 prescribes the statutory deadlines within which claimants may pursue various categories of claims. Those limits define the period within which such claims must properly be started. Broadly, a defendant will enjoy a full defence to any proceedings issued (see further below: ‘When is a claim brought?’) after the expiry of the applicable period. Once the pertinent time limit has elapsed, the claim is treated as statute-barred. The...

What is the PCSPS? Until 30 September 2002, the Principal Civil Service Pension Scheme (PCSPS) was the only pension option for the civil service. From 1 October 2002, four distinct sections were introduced within the PCSPS: Classic (the 1972 Section), Classic Plus (a blend of Classic and Premium), Premium (the 2002 Section) and Nuvos (the 2007 Section). The first three operate on a final salary basis, whereas Nuvos is a career-average section. For further details on how these sections were established, see below. Subsequently, on 1 April 2015, a new arrangement, the Civil Service Pension scheme (CSP) alpha, was created to provide benefits on a career average basis. When alpha was brought in, the government acted to close the PCSPS to future accrual, subject to: the retention of a final salary link in the PCSPS for active members, meaning benefits earned in the PCSPS are calculated using final salary at the point of leaving the civil service rather than when active PCSPS membership ended... ...

Add new definition to clause 1.1 of Precedent: Partnership agreement Garden Leave Denotes any interval in which the Management Committee exercises its rights under Clause 19...

1 Holiday 1.1 Taking your holiday, that is your annual leave entitlement, is essential for rest and recuperation, and we strongly encourage you to use your full allowance throughout the year. 1.2 Your holiday entitlement accrues [ monthly ] at the rate of [ 12.07 ]% of the hours you work each [ month ] [ , capped at 28 days per holiday year ] . The holiday year runs from [ 1 January ] to [ 31 December ]. 1.3 [ You might be asked to work on bank holidays and other public holidays. ] 1.4 [ [PART-YEAR WORKER ONLY: ] You are engaged to work for only part of the year as described in [ clause x above ]. Your holiday must be taken outside those working periods. ] 1.5 You are required to take your leave in the same holiday year in which it accrues...

As outlined in Practice Note: Intestacy—summary and Entitlement on intestacy—flowchart, the order of entitlement on intestacy is set out within section 46 of the Administration of Estates Act 1925 (AEA 1925)...

A landlord of commercial premises let under a lease may invoke the mechanism in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 (TCEA 2007) to recover rent due from the tenant under that lease. This mechanism is known as commercial rent arrears recovery (CRAR) (TCEA 2007, s 72(1)). When TCEA 2007 commenced on 6 April 2014, CRAR supplanted the landlord’s former common law right to distrain, which from that date was abolished (TCEA 2007, s 71). TCEA 2007, accordingly, provides a complete statutory code defining the scope of the landlord’s remedy where rent on commercial premises is outstanding under the CRAR regime. If a tenant leaves rent unpaid, the landlord may serve a notice on any subtenant specifying the sum it is entitled to recover under CRAR (TCEA 2007, s 81). That notice takes effect after 14 clear days have elapsed from service (TCEA 2007, s 81(5) and the Taking Control of Goods Regulations 2013, SI 2013/1894, reg 53)...

Worker categories For leave years commencing before 1 April 2024 there was only one worker category for holiday entitlement and pay purposes, which we describe as ‘regular’ workers. For leave years beginning on or after 1 April 2024, a new way of working out holiday entitlement and pay was introduced, but it applies only to individuals who fall within the newly established ‘part-year’ or ‘irregular hours’ categories. For anyone who does not sit within those categories, the previous method of calculating holiday entitlement and pay continues to apply. For fuller detail on what counts as a part-year worker under the Working Time Regulations 1998 (WTR 1998), SI 1998/1833, regs 2(1) and 15F(1)(b), refer to the ‘Part-year worker’ section of Practice Note: Statutory paid holiday—irregular hours workers and part-year workers. See also the government guidance: Holiday pay and entitlement reforms from 1 January 2024. In light of the question asked, the text below proceeds on the basis that the worker is within the ‘regular’ worker category rather than meeting the...