Proposed amendments to pensions legislation announced today - covering part-time workers - could res...
Proposed amendments to pensions legislation announced today - covering part-time workers - could result in up to 400,000 claims being made as far back as April 1976, and could cost employers and employees more than £3.2bn to implement.
Figures have been released by the DWP based on calculations done by the Government Actuary's Department (GAD). The figures are only estimates as full sets of statistics are not available to back up the calculations.
Under the terms of the amendments, former employees have up to six months in which to lodge a claim for backdated pension rights as guaranteed by European law.
The European Court of Justice ruled that because part-time workers excluded from occupational pension schemes tend to be of one sex, the exclusion amounted to a form of sex-discrimination under the European Treaty applied since 1976.
Now, in addition to some 50,000 cases already lodged with Employment Tribunals, the DWP estimates that some 150,000 public sector and 200,000 private sector employees could be eligible to make claims for pension rights under the amended rules.
GAD estimates that the average value of pension benefits likely to be reinstated is about £8,000, with about £6,000 contributed by employers.
However, it is impossible to estimate how many employees will press for full rights, as they too will be tapped for cash to pay backdated contributions to schemes that they might previously have been barred from joining.
DWP figures estimate the net contribution of the 400,000 employees affected at £900m, including a £100m refund of National Insurance contributions.
Employers could be hit for more than £2bn in backdated contributions net of £300m in refunded NI payments.
Administering the claims could cost the industry up to £80m.
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