Criminal Justice Act 1988

12 (1) Compensation payable, other than compensation in respect of funeral expenses, shall be assessed on the basis that the loss to be compensated is reduced by the value of any pension rights, other than private pension rights, which—

(a) where the claimant is the person who sustained the injury to which the claim relates, are enjoyed by him in consequence of that injury and by virtue of any office or employment of his; or

(b) where the claimant is a dependant of the person who sustained the injury to which the claim relates, are enjoyed by him in consequence of that person’s death and by virtue of any office or employment of that person.

(2) In assessing the value of any pension rights for the purposes of this paragraph, regard shall be had to any likelihood that present or future liability to income tax may reduce their value.

(3) In this Schedule “private pension rights” means rights arising under pension arrangements for which no person wholly or partly pays except—

(a) the person who sustained the injury to which the claim relates;

(b) his spouse;

(c) any person who on the date that that injury was sustained—

(i) was living in the same household as the person who sustained that injury;

(ii) was so living with him as his spouse; and

(iii) had been so living with him in the same household during the whole of the period of two years immediately preceding that date;

(d) where the person who sustained that injury was at the time under the age of 18 years, his parent or guardian.

(4) For the purposes of this paragraph “pension rights” includes sums paid under insurance arrangements, other than private insurance arrangements, and gratuities.