Contact: Dave Wilson, (01962) 847407; [email protected]

1 Summary

1.1 This report updates the Panel on progress in resolving pension claims from part-time workers in the Local Government Pension Scheme (LGPS) since the last report presented to its meeting on 23 November 2004.

2 Background

2.1 Employees working less than 30 hours per week were excluded from the LGPS until 1 April 1986. From that date, 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.

2.2 In 1994, the European Court of Justice ruled that the exclusion of part-time workers from pension schemes was sexual discrimination, in contravention of the Treaty of Rome and the Equal Pay Act 1970. The House of Lords subsequently heard a number of test cases in the UK, and then sought further guidance from the European Court in May 2000. The advice from the European court was as follows:

· Claims for retrospective admission to pension schemes had to be made within six months of the termination of employment.

· Former and current part-time workers could claim retrospective admission to schemes from April 1976, the date of an earlier European Court judgement.

2.3 The House of Lords accepted these rulings.

3 Current position and timetable

3.1 Claims against the Hampshire Pension Fund have been made by letter and via the UK employment tribunal. Updated timetables summarising the progress on the claims affecting the Hampshire Fund are attached as an Appendix to this report.

Claims by letter

3.2 There are around 330 active claims in total. Ten applicants have been informed so far that they have been successful. However, Local Government Pensions Committee confirmation that non-employment tribunal claims can be settled is still awaited. Other claims are subject to the outcome of ongoing test cases, so there can be no clear timetable for the full resolution of the outstanding claims.

Employment tribunal claims

3.3 There were around 150 claims on the Hampshire Fund via the UK employment tribunal at the start of the process. 56 claims are still active. The County Treasurer has asked the tribunal to strike out four of these claims, but a response is still awaited. Seven claims have been verified and settled. Other claims cannot be resolved pending the outcome of the ongoing test cases. Again it is therefore unclear when all the outstanding issues can be fully resolved.

Recommendation

1 That this report be noted.

Section 100 D - Local Government Act 1972 - background documents

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

NB: The list excludes:

None.