Pension experts give evidence to Dr Ranson tribunal

Witnesses discuss offsetting loss of former medical director's pension

A tribunal considering the payment the Island's former medical director will receive after being unfairly dismissed from her role has been hearing evidence from pension experts.

The panel has been hearing from witnesses as it considers how much compensation Dr Rosalind Ranson will receive.

Both parties called experts to discuss the sum they believe Dr Ranson would need to offset the loss of pension she'll experience due to her unfair dismissal.

Dr Ranson's team brought in Island-based actuary Neil Taverner, who discussed how issues like life expectancy and inflation could impact the calculation.

He told the tribunal that having an occupational pension scheme typically increases a person's life expectancy by two years - something he said should be factored into Dr Ranson's payout.

However, the expert called by the Department of Health and Social Care disagreed.

Alison Hollywood, a director at PricewaterhouseCooper in Belfast, said she believes other factors need to be taken into account, such as the impact high paid roles like Dr Ranson's have on stress levels.

As a result, her report predicted a two-year shorter life expectancy, affecting the amount she predicts Dr Ranson will need to offset against her pension loss.

Oliver Seagal KC, representing Dr Ranson, challenged this view, highlighting that there is no medical evidence to indicate Dr Ranson wouldn't reach an older age.

Mr Seagal also suggested that Ms Hollywood's analysis was wrong, telling the tribunal "it's no use telling someone they may die younger so let's spend all the money now, when the may live longer".

Ms Hollywood conceded that an individual receiving a lump sum would have to invest more conservatively if they wanted to offset the risk of living longer, but stressed that the tribunal has to take the balance of probability into account.

She insists the calculations she used in her submission factor in that Dr Ranson could exceed her life expectancy, but Mr Seagal told the hearing he doesn't believe that to be the case.

Having lost a day earlier this week due to the weather conditions, the tribunal has now adjourned until March, when medical experts are scheduled to give evidence.