One of the region’s most experienced employment solicitors says yesterday’s landmark ruling into pension rights could have huge ramifications for business.

The Supreme Court issued a landmark ruling which has granted the husband of a gay man the same pension rights as a wife would have received.

Peter Byrne of Taylors Solictors says the ruling is long overdue, will have a dramatic on thousands of civil partners and spouses in same sex marriages but could also have a significant impact on businesses. 

“The cost to business may be significant. During the course of the hearing, it was estimated that the cost of applying the rule on a retrospective basis would be approximately £100,000,000 for the private sector schemes and a further £20,000,000 for the public sector,” he said.

“Equality, in terms of the rights of individuals relating to their sexual orientation has now been established for many years. However, pension legislation has failed to keep up.

“In the light of this decision we are advising employers to check the eligibility terms of their existing pension schemes as there may now be a need to instruct the relevant trustees to amend in line with this important decision.”

The majority of occupational pension schemes give 50% of the value of the pension to a spouse for the rest of their lives after a husband or wife dies.  The Equality Act 2010 has an exemption for employers, allowing them to exclude civil partners from spousal benefits which have been paid in before December 2005.  The Supreme Court has now indicated that this is incompatible with European Legislation and cannot be applicable in the future, and must be applied retrospectively.

Adds Mr Byrne: “If Mr Taylor, who brought the case, died, and his spouse was entitled to spousal maintenance, he would receive £45,000 per year in the event of the death of his partner.  However, under the existing pension rules which exclude same sex relationships, the total amount received would have only been £1,000 per year.”

With offices in Manchester, Wigan and Blackburn, Taylors is a law firm specialising in all aspects of commercial law.  The dynamic and highly experienced lawyers at Taylors are committed to providing the highest quality service through a real understanding of our clients’ needs, business priorities and specific requirements.

For further information contact Peter Byrne 01254 297900