Wedding 'gift' that robbed women

WOMEN employees duped into giving up crucial pension rights by the offer of small cash 'gifts' are to battle with bosses for compensation next month.

In the Sixties and Seventies, female staff in banks and other large organisations were routinely offered a cash lump sum when they married. What most didn't realise was that they were signing away all of the pension they had accumulated.

Some of Britain's biggest banks such as HSBC, Lloyds TSB and NatWest/Royal Bank of Scotland all used the practice, as did telecoms giant BT and the Civil Service.

Misleadingly known as marriage gratuity, it wiped out all pensionable service clocked up during years of being single.

The result was a loss often of between ten and 20 years' service, a huge cut on a final salary pension based on the number of years worked and last few years' earnings.

The paltry payments, often worth just a month's salary, were regarded as a company perk for women when they decided to marry.

However, the massive implications of accepting the so-called 'gift' were rarely, if ever, explained to staff.

Many men received perks, such as mortgage subsidies, but these had no effect on their pension rights.

Banking and finance union Unifi is taking up the cudgels for members, and has targeted the mighty HSBC, formerly Midland Bank, which is under extreme pressure to pay up.

It was forced to pay out an estimated £25 million compensation in March to more than 2,000 part-time workers, mostly women, who were denied pension rights, unlike full-time colleagues.

A landmark decision by the House of Lords opened the way for about 60,000 part-time workers to backdate pension claims.

The case was fought on the grounds of sexual discrimination, and now part-timers have the chance to backdate pensions to 1976.

The settlement could become a benchmark to decide the outcome of other long-running negotiations such as those over marriage gratuity.

Up to 300 current and retired female employees from HSBC are being represented, and union officials believe they have a strong moral case for compensation.

Hugh Roberts, a leading negotiator at Unifi, says: 'It's obvious that there was an orchestrated conspiracy at the old Midland Bank to rob women of their pension rights.

'We will attempt to win compensation for past service, but if we don't reach a settlement we will let the courts decide.'

Other banks in the firing line are NatWest/Royal Bank of Scotland and Lloyds TSB. One former long-standing employee of Royal Bank said management never told staff that years of pension would be ditched in exchange for taking the marriage gratuity, and it was described as a gift. Pension rules should have been published in company handbooks, but these were not readily available for staff members. Women were not compelled to take the gratuity.

HSBC says it is confident that it has complied with all relevant employment legislation, and will continue to do so.

TELL US YOUR STORY
HAS your pension been cut or taken away because you took the marriage gratuity? Please tell us at Marriage Gratuity, Money Mail, Northcliffe House, 2 Derry Street, Kensington, London, W8 5TT. Or e-mail m.kovac@ dailymail.co.uk, giving a contact phone number.