Quantum calculator
Pension loss calculator
Pension loss for personal injury claims in England and Wales, computed under Ogden Tables 8th edition Section C. The calculator covers the defined benefit shortfall method and the defined contribution lost-contributions method, applies the Parry v Cleaver and Longden offset rules, and shows the full working with every rule cited to source.
Rules current to 11 January 2025. Read how these calculators work on the quantum methodology page.
Read the multiplier from the Ogden Tables 8th edition at the +0.5% column. The table values are not yet loaded, so this is an explicit input.
Pension-related receipts
How pension loss is calculated
For a defined benefit scheme, the loss is the annual pension shortfall. That is the pension that would have accrued but for the injury minus the pension now accruing. The shortfall is capitalised from retirement age using the pension-loss multipliers in Tables 19 to 34, which assume the loss begins at retirement age and continues for life, with allowance for survival to retirement. Retirement age selects the table pair and sex selects the table within it, odd-numbered tables being male and even-numbered female. Only the tabulated retirement ages of 50, 55, 60, 65, 68, 70, 75, and 80 are supported, and intermediate ages are refused rather than interpolated.
For a defined contribution scheme, the loss is usually measured by lost employer contributions, and where claimed lost employee contributions, as a stream to retirement. That stream is capitalised with the loss-of-earnings multipliers in Tables 3 to 18, not the pension tables. Statutory auto-enrolment minimum contributions have applied since 6 April 2019, as reflected in the 8th edition guidance. The minimum contribution percentages are not stated here because they must be verified against the automatic enrolment legislation and The Pensions Regulator guidance.
The offset rules are enforced. Receipts referable to the post-retirement period reduce the post-retirement pension loss, and an ill-health pension is never deducted from any loss of earnings figure (Parry v Cleaver). Receipts referable to the pre-retirement period are not set off, and the working lists them as not set off with the Longden citation. Offsets are applied as annual amounts against the annual shortfall before capitalisation, and the net annual shortfall is floored at zero rather than returned as a negative loss.
The multipliers are read at the +0.5% column, fixed by the personal injury discount rate for England and Wales effective 11 January 2025. Because the published multiplier values are not yet loaded, the multiplier is an explicit input read by the user from the published tables, and every result carries a flag saying so. For complex or public-sector defined benefit schemes such as NHS, LGPS, or police schemes, Ogden Section C expressly recommends instructing an actuary or forensic accountant, and the calculator returns the conventional figure together with a prominent actuary-referral flag. Spouse and survivor pension adjustments, the broad-brush Auty discount, the Van Wees lump sum fallback, and interest on past pension loss are not computed.
Primary sources
- Ogden Tables 8th edition, Section C, Quantification of Pension Loss, including worked examples 13 (auto-enrolment) and 14 (LGPS).
- Personal injury discount rate for England and Wales, +0.5%, effective 11 January 2025.
- Parry v Cleaver [1970] AC 1 (HL). An ill-health pension is offset only against the post-retirement pension loss and never against loss of earnings.
- Longden v British Coal Corporation [1998] AC 653 (HL). Only receipts referable to the post-retirement period are set off against post-retirement pension loss.
- Auty v National Coal Board [1985] 1 WLR 784 (CA). The historic broad-brush discount of roughly 10 to 20 per cent, of reduced practical weight against the actuarial Ogden methodology. Recorded as a note only.
- Van Wees v Karkour and Walsh [2007] EWHC 165 (QB). The broad-brush lump sum fallback where precise calculation is impossible. Recorded as a note only.
Frequently asked questions
How is defined benefit pension loss calculated?
The loss is the annual pension shortfall, the pension that would have accrued but for the injury minus the pension now accruing, capitalised from retirement age using the pension-loss multipliers in Ogden Tables 19 to 34 at the +0.5% column. These tables assume the loss begins at retirement age and continues for life, with allowance for survival to retirement.
How is defined contribution pension loss calculated?
The loss is usually measured by lost employer contributions, and where claimed lost employee contributions, as a stream to retirement. It is capitalised with the loss-of-earnings multipliers in Ogden Tables 3 to 18, not the pension tables. Statutory auto-enrolment minimum contributions have applied since 6 April 2019, as reflected in the 8th edition guidance.
How does the calculator pick the Ogden table?
Retirement age selects the table pair and sex selects the table within it. Odd-numbered tables are male and even-numbered are female. Retirement at 50 uses Tables 19 and 20, at 55 Tables 21 and 22, at 60 Tables 23 and 24, at 65 Tables 25 and 26, at 68 Tables 27 and 28, at 70 Tables 29 and 30, at 75 Tables 31 and 32, and at 80 Tables 33 and 34. Retirement ages between the tabulated ages are not interpolated and are refused.
Are pension receipts deducted from the loss?
Only receipts referable to the post-retirement period are set off, and only against the post-retirement pension loss. An ill-health pension is never deducted from any loss of earnings figure (Parry v Cleaver [1970] AC 1 (HL)). Pension payments received before the intended retirement date are not offset against post-retirement pension loss (Longden v British Coal Corporation [1998] AC 653 (HL)).
Which discount rate does the calculation use?
The personal injury discount rate for England and Wales of +0.5%, effective 11 January 2025, selected by the calculation date. Because pension loss is deferred, the multipliers are highly sensitive to the discount rate, so the working always records the rate applied and its in-force date.
What does this calculator not do?
It does not apply spouse or survivor pension multiplier adjustments, which must first be confirmed in Ogden Section C. It does not compute the historic broad-brush Auty discount or the Van Wees lump sum fallback, which are recorded as notes only. It does not compute interest on past pension loss, and it does not attempt actuarial modelling of complex or public-sector schemes such as NHS, LGPS, or police schemes, for which it returns the conventional figure with an actuary-referral flag.
Where do the multipliers come from?
The published Ogden Tables 8th edition multiplier values are not yet loaded into the calculator, so the multiplier is an explicit input read by the user from the published tables at the +0.5% column. Every result carries a flag saying so, and every figure should be verified against the published tables at source.