The government response to a European Court of Justice Ruling outlawing gender-based pricing of annuities has made it more likely that a test case will be brought, a lawyer has said.
The Treasury confirmed yesterday that occupational pension schemes would be exempt from the legislation.
The response acknowledged this could result in a "two-tiered" annuity market, with people saving into personal pensions subject to the gender neutrality legislation but members of workplace schemes coming under the separate Equal Treatment Directive.
Sackers partner Zoe Lynch said: "The reason for the maintaining the distinction seems to be the ‘good money after bad' argument. They did not want the change in the first place and now they do not want to change everything in line with it if they do not have to."
However, Lynch said this made it more likely that a test case would be brought on the validity of the exemption in Equal Treatment Directive, a fact acknowledged by the Treasury.
In its response it said that only the courts could "provide an authoritative interpretation of the judgment".
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