Appendix 1

Contact: David Wilson, ext 7407

1. Introduction

1.1 The Panel will recall that employees working less than 30 hours a week were excluded from the Local Government Pension Scheme (LGPS) until 1 April 1986. Since then, part-time workers could opt into the Scheme if they worked at least 15 hours a week and 35 weeks a year. On 1 January 1993, the requirement to work a minimum of 15 hours a week was removed, and on 1 May 1995 the need to work at least 35 weeks a year was also dropped.

1.2 In 1994, the European Court of Justice ruled that the exclusion of part-time workers could be sexual discrimination, contrary to the Treaty of Rome and the Equal Pay Act 1970. This resulted in a number of test cases in the UK which had to be referred to the House of Lords.

1.3 In May 2000, the House of Lords sought further guidance from the European Court, which ruled:

· That claims for retrospective admission had to be made within six months of the termination of employment.

· That former and current part-time workers could therefore claim retrospective admission to pension schemes for a period dating back to April 1976, the date of an earlier European Court judgement.

1.4 The House of Lords has accepted these rulings.

2. Current position and timetable

2.1 Since these rulings around 80 claims which appear to satisfy the above conditions have been made via the UK Employment Tribunal by current and former members of the Hampshire Fund. Another 600 claims have been made by letter, although it is unclear yet how many of these are LGPS cases.

2.2 It has not been possible to deal with these claims quickly because the Government has been preparing guidance on how to implement the rulings for public sector schemes in the UK. This guidance has now been issued.

2.3 Attached to this report are separate timetables for dealing with claims via the tribunal and by letter. Tribunal cases should all be settled by the end of July 2004. The applications by letter will take longer, with completion of the process expected in February 2005. Progress reports will be made to the Panel at its November 2004 and May 2005 meetings.

Recommendation

1 That the Panel note this report.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

Published works.

Documents which disclose exempt or confidential information as defined in the Act.

TITLE FILE

None.