Expert Comments After Historic Vote

The failure to deal effectively with how the newly advanced assisted dying legislation will impact workplace pensions and life assurance could result in legal challenges and significant financial costs for employers and trustees, says leading law firm Irwin Mitchell.

The Terminally Ill Adults (End of Life) Bill, which passed through the House of Commons today, marks a significant shift in British social policy. The Bill, which allows terminally ill adults in England and Wales to end their own lives under strict safeguards, now proceeds to the House of Lords, where it is widely expected to pass.

According to experts at law firm Irwin Mitchell, businesses now face a fine line to tread, and the financial and reputational risks of getting it wrong are substantial.

Key Issues for Businesses to Consider:

• Trustee Responsibilities: Trustees of pension and life assurance schemes must make 'reasonable enquiries' into the circumstances of a death, including those involving assisted dying.
• Forfeiture Act Compliance: The Act prevents beneficiaries from benefitting if they unlawfully killed the deceased, which may include assisting in their death.
• Criminal and Civil Liability: While the Bill offers protections, terms like 'coercion' and 'pressure' remain undefined, complicating trustees' decisions.
• Due Diligence: Trustees must exercise caution and seek legal advice to navigate potential legal and financial risks.
• Policy Amendments: Insurance policies and trust documents may need to be re-drafted to align with the new laws on assisted dying.
• Equality Act Considerations: Trustees and employers must consider the implications of the Equality Act 2010 when adjusting their schemes.
• Judicial Decisions: Trustees must be prepared for judicial decisions that may impact the discretionary rights of pension or life assurance schemes.
• Beneficiary Involvement: Beneficiaries involved in assisted dying may need to demonstrate a passive role to avoid disqualification from benefits. While under the Bill beneficiaries cannot be witnesses or proxies to the statutory declarations made by the terminally ill person, overall, we don’t think this prohibition goes far enough to protect beneficiaries who may benefit financially form the individual’s death.

  Expert Opinion

  “Now that the assisted dying bill has cleared the Commons and is on its way to the Lords, navigating this complex and sensitive legislation becomes even more urgent for businesses. By staying informed and taking proactive measures, employers and trustees can protect themselves from severe legal challenges and financial penalties while providing compassionate support to their employees and beneficiaries during these difficult times.” Michael White, from Irwin Mitchell’s Pensions team,