UK - Defined contribution schemes pose a potential sex discrimination headache for companies, a leading lawyer claims.
Pinsent Curtis Biddle partner Alastair Meeks said a woman with an identical date of birth, service and pay history, and investment return to a male employee would almost certainly receive a lower level of pension because most women live longer.
Meeks said that all legal disputes on equal pay for equal work had been heard in relation to final salary schemes.
But he said it would be an optimistic assumption to believe that defined contribution schemes would not attract similar claims.
He added: “People need to be aware of the point and appreciate that there may be an issue here. The issue is primarily for employers rather than schemes and benefit design.”
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