Lloyds equal pensions deal could cost firms £13bn


Employers running defined benefit pension schemes could be on the hook for billions in extra payments as a Lloyds Bank union pushes for a new deal for women.

One of the bank’s three trade unions is to launch legal action over unequal pension payments made to men and women who have accured guaranteed minimum pensions, the FT reports.

The Lloyds Trade Union says around 100,000 women are missing out on roughly £2,000 each.

The state-backed lender would have to fork out an additional £300m, before legal and admin costs, if the union wins.

In Barber v Guardian Royal Exchange (1990) the European Court of Justice said pensions are pay and should be equalised.

In 2012 the Department for Work and Pensions said there was a requirement to equalise guaranteed minimum pensions, which the industry estimated would cost £13bn.

However, many schemes have still not resolved the issue.