Implications for pensions after gay marriage ruling
PENSION schemes could eventually face a multi-billion pound bill following the decision in a landmark legal battle at the UK’s highest court which could provide financial security for thousands of same-sex couples.
Ex-cavalry officer John Walker, 66, said he was “thrilled” after Supreme Court justices ruled unanimously in his favour in his long-running action to secure his husband the same rights a wife would have in the event of his death.
Mr Walker retired from chemicals group Innospec Ltd in 2003 after working for the company for more than 20 years - he had made the same contributions to the pension scheme as his heterosexual colleagues.
His legal challenge centred on an exemption in the 2010 Equality Act allowing employers to exclude samesex partners from spousal benefits paid into a pension fund before December 2005, which was when civil partnerships became legal.
Yesterday, a panel of five justices, headed by the Supreme Court’s deputy president Lady Hale, made a declaration that the exemption was “incompatible with EU law and must be disapplied”.
The decision means Mr Walker’s husband, a former computer executive in his fifties who prefers not to be named, will be entitled on his death - provided they are still married - to a spouse’s pension of around £45,000 a year, rather than about £1,000 which he would have received.
After the ruling, Mr Walker, who was represented by human rights organisation Liberty, said: “I am absolutely thrilled at today’s ruling, which is a victory for basic fairness and decency.”
During the Supreme Court hearing of the case in March, a QC for the Work and Pensions Secretary pointed out that the costs involved in “requiring all pension schemes to equalise entitlements retrospectively” would be £100 million for private sector schemes and a further £20 million for public sector schemes.
A Government spokesman said: “We are reviewing the implications of this judgment in detail and will respond in due course.
“The rights of same-sex couples have been transformed for the better since 2010, including the introduction of same-sex marriage and legislation to ensure that pensions are built up equally for all legal partnerships.”
Sir Steve Webb said the cost could escalate as other groups may now come forward. Sir Steve, who is sirector of policy at Royal London, told the Press Association: “This has potentially huge implications.
“Pension schemes will have to respond to this judgment, but new groups will come forward and say: ‘I’m being treated unfairly... we want the same rights as well’ - the difference between widows and widowers - for example.”
He said that, eventually, over time, with the potential for new cases: “We could be talking a multi-billion pound bill.”