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Súdny dvor Európskej únie·22.5.2003

C-4/02

ECLI:EU:C:2003:309

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Súdny dvor Európskej únie
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62002CC0004

SCHÖNHEIT AND BECKER

OPINION OF ADVOCATE GENERAL GEELHOED delivered on 22 May 2003 1

I — Introduction application of the principle that men and women should receive equal pay for equal work. 1. In these cases the Verwaltungsgericht (Administrative Court) Frankfurt am Main (Germany) has submitted for a preliminary ruling 11 questions on the compatibility of German legislation on pensions for offi- cials, and more specifically the reduction of pensions of officials working part-time for For the purposes of this Article, "pay" which that legislation provides, with the means the ordinary basic or minimum wage principle of the equal treatment of men and or salary and any other consideration, women in the labour market, as laid down whether in cash or in kind, which the in Article 141 EC and secondary Commu- worker receives, directly or indirectly, in nity law. respect of his employment from his employer.'

II — Legislative background

A — Community law 3. In the meantime, the Treaty of Amster- dam has replaced the first and second The Treaty paragraphs of Article 119 of the Treaty with Article 141(1) and (2), first subpara- graph, EC. Article 141(1) and (2) EC read: 2. The first and second paragraphs of Article 119 of the Treaty read:

'Each Member State shall during the first stage ensure and subsequently maintain the '1. Each Member State shall ensure that the principle of equal pay for male and female workers for equal work or work 1 — Original language: Dutch. of equal value is applied.

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2. For the purpose of this article, "pay" principle of equal treatment for men and means the ordinary basic or minimum women in matters of social security 2 (here- wage or salary and any other consider- inafter 'Directive 79/7'), this Directive ation, whether in cash or in kind, applies to statutory schemes which provide which the worker receives directly or protection inter alia against old age. indirectly, in respect of his employ- ment, from his employer.

6. Article 4(1) of Directive 79/7 stipulates: ...'

'The principle of equal treatment means 4. The Protocol concerning Article 119 of that there shall be no discrimination what- the Treaty establishing the European Com- soever on ground of sex either directly, or munity (now the Protocol concerning indirectly by reference in particular to Article 141 EC; hereinafter 'the Barber marital or family status, in particular as Protocol') stipulates: concerns:

'For the purposes of Article 119 of this Treaty, benefits under occupational social — the scope of the schemes and the security schemes shall not be considered as conditions of access thereto, remuneration if and in so far as they are attributable to periods of employment prior to 17 May 1990, except in the case of workers or those claiming under them who have before that date initiated legal pro- ceedings or introduced an equivalent claim — the obligation to contribute and the under the applicable national law.' calculation of contributions,

Directive 79/7 — the calculation of benefits including increases due in respect of a spouse and for dependants and the conditions governing the duration and retention of entitlement to benefits.' 5. Pursuant to Article 3(1)(a) of Council Directive 79/7/EEC of 19 December 1978 on the progressive implementation of the 2 — OJ 1979 L 6, p. 4.

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Directive 86/378 (a) occupational schemes which provide protection against the following risks:

7. Article 2(1) of Council Directive 86/378/EEC of 24 July 1986 on the imple­ mentation of the principle of equal treat­ ment for men and women in occupational social security schemes 3 as amended by Council Directive 96/97 of 30 December 1996 4 (hereinafter 'Directive 86/378') reads: — old age, including early retirement,

"Occupational social security schemes" means schemes not governed by Directive 79/7/EEC whose purpose is to provide workers, whether employees or self-em­ ployed, in an undertaking or group of undertakings, area of economic activity, occupational sector or group of sectors with benefits intended to supplement the benefits provided by statutory social secur­ 9. Article 5(1) of Directive 86/378 reads: ity schemes or to replace them, whether membership of such schemes is compulsory or optional.'

' 1 . Under the conditions laid down in the following provisions, the principle of equal treatment implies that there shall be no 8. Article 4 of Directive 86/378 provides: discrimination on the basis of sex, either directly or indirectly, by reference in par­ ticular to marital or family status, especially as regards:

'This Directive shall apply to:

3 — OJ 1986 L 225, p. 40. — the scope of the schemes and the 4 — O J 1997 L 46, p. 20. conditions of access to them;

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— the obligation to contribute and the In the case of funded defined-benefit calculation of contributions; schemes, certain elements (examples of which are annexed) may be unequal where the inequality of the amounts results from the effects of the use of actuarial factors differing according to sex at the time when the scheme's — the calculation of benefits, including funding is implemented; supplementary benefits due in respect of a spouse or dependants, and the conditions governing the duration and retention of entitlement to benefits.' …'

10. Article 6(1) of Directive 86/378 stipu- lates: Directive 97/80

'Provisions contrary to the principle of 11. Article 2(2) of Council Directive equal treatment shall include those based 97/80/EC of 15 December 1997 on the on sex, either directly or indirectly, in burden of proof in cases of discrimination particular by reference to marital or family based on sex 5 (hereinafter 'Directive status, for: 97/80') provides:

'For purposes of the principle of equal treatment referred to in paragraph 1, indi- rect discrimination shall exist where an apparently neutral provision, criterion or practice disadvantages a substantially higher proportion of the members of one sex unless that provision, criterion or prac- (h) setting different levels of benefit, tice is appropriate and necessary and can be except in so far as may be necessary justified by objective factors unrelated to to take account of actuarial calculation sex.' factors which differ according to sex in the case of defined-contribution schemes. 5 — OJ 1998 L 14, p. 6.

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12. Article 4 of Directive 97/80 reads: BeamtVG') in the version published on 16 March 1999 stipulates, under the head- ing 'Normal pensionable service':

' 1 . Member States shall take such measures as are necessary, in accordance with their national judicial systems, to ensure that, '(1) Pensionable service is the period of when persons who consider themselves service completed by the official from wronged because the principle of equal the date of appointment· as an official treatment has not been applied to them in the service of a public-law employer establish, before a court or other competent within national territory. That does not authority, facts from which it may be include periods presumed that there has been direct or indirect discrimination, it shall be for the respondent to prove that there has been no breach of the principle of equal treatment.

2. This Directive shall not prevent Member States from introducing rules of evidence 5. of unpaid leave which are more favourable to plaintiffs.

3. M e m b e r States need not apply paragraph 1 to proceedings in which it is for the court or competent body to inves- tigate the facts of the case.' Periods of part-time employment arc pen- sionable only in such proportion as the reduced working time bears to normal working time... .'

B — National law

14. The Fünftes Gesetz zur Änderung dien- s t r e c h t l i c h e r Vorschriften (Fifth law 13. Paragraph 6 of the Beamtenversor- amending civil service-related legislation) gungsgesetz (Law on civil service pensions) of 25 July 1984 (hereinafter 'the amending of 24 August 1976 (hereinafter 'the law of 1984') introduced into the second

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c l a u s e of t h e first s e n t e n c e of 16. The pension abatement introduced by Paragraph 14(1) of the BeamtVG under the amending law of 1984, applied on the the heading 'Amount of pension' a pension degressive pension scale of the old version abatement in the event of unpaid leave and of Paragraph 14 of the BeamtVG, was reduction of working time for family rea- abolished by Paragraph 14(16) of the sons and on grounds covered by the Fünftes Gesetz zur Änderung besoldungs- regulation concerning special leave. rechtlicher Vorschriften (Fifth Law amend- ing regulations concerning remuneration) of 28 May 1990 (hereinafter 'the Fifth amending law of 1990').

15. Paragraph 14(1) of the BeamtVG in the 17. In addition, the degressive scale of version amended by the amending law of increases provided for in Paragraph 14 of 1984, applicable from 1 August 1984 until the BeamtVG (old version) was replaced 31 D e c e m b e r 1 9 9 1 ( h e r e i n a f t e r with a linear system. 'Paragraph 14 of the BeamtVG (old ver- sion)'), read:

18. Paragraph 14(1) of the BeamtVG, which is entitled 'Amount of pension' and entered into force on 1 January 1992 (hereinafter 'Paragraph 14 of the BeamtVG (new version)'), thus reads as follows: '(1) On completion of ten years' pension- able service the pension shall amount to 35% and shall rise with every further year of service by 2% until completion of the twenty-fifth year of service, and thereafter by 1 % of pensionable service, subject to a maximum of seventy-five percent...; in the '(1) In respect of each year of pensionable case of part-time work, leave or reduced service the pension shall amount to 1.875% working time, the rate of pension which of... remuneration, subject, however, to a would have been attained hereunder but for maximum amount of 75%... .' these departures from full-time work, and before application of the maximum rate, shall be reduced in such proportion as actual pensionable service bears to the period of time which but for the departures from full-time working would have been completed but shall not be less than 35% 19. Paragraph 85 of the BeamtVG, which is or more than 75%.' entitled 'Rate of pension for officials in I - 12584

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service as at 31 December 1991', stipulates: III — Facts of the case and procedural background

'(1) Where on 31 December 1991 the Case C-4/02 person concerned already had the status of an official, the rate of pension acquired by that date shall be maintained. In that connection calculation of pensionable ser- vice and rate of pension shall be determined 20. Mrs Schönheit, who was born on in accordance with the law applicable up to 12 July 1939, had been employed as a 31 December 1991. The second and third social worker by the City of Frankfurt am clauses of the first s e n t e n c e of Main since 1966, initially as an employee Paragraph 14(1) shall not apply. The rate and from 1 January 1984 as an official. of pension resulting from the first and second sentences shall rise with each year which from 1 January 1992 onwards is completed as pensionable service under the law applicable as from that date by one percent of the pensionable remuneration up 21. Until 30 June 1992 she worked full- to a maximum rate of 75%. t i m e ; between 1 July 1992 and 31 December 1995 she was employed on a half-time basis. Thereafter she was on unpaid leave for six months (from 1 January 1996 until 30 June 1996). Subsequently, she again worked on a half-time basis.

22. On 8 March 1999 Mrs Schönheit applied for early retirement on the basis of her serious invalidity. By its decision of 12 July 1999 the City of Frankfurt am (4) T h e r a t e of p e n s i o n u n d e r Main granted her request for early retire- paragraphs (1), (2) or (3) shall be used as ment on the basis of incapacity for service the basis for calculating the pension if such with effect from 1 August 1999. rate is higher than the rate of pension resulting under this law for the whole period of pensionable service. The rate of pension under paragraph (1) may not exceed the rate of pension which would result from calculation under the law 23. Similarly by a decision of 12 July 1999 applicable until 31 December 1991.' the City of Frankfurt am Main determined

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Mrs Schönheit's pension benefits at still in force, the pension amounted to 65.80% of her pensionable remuneration. 67%. In respect of the period from 1 January 1992 until 31 July 1999 the period of pensionable service, pursuant to Paragraph 6 of the BeamtVG, was 3 years and 228.5 days (3.79 years), resulting in a pension entitlement of 3.79%. The total pension therefore amounted to 67% + 24. The City of Frankfurt am Main pro- 3.79% = 70.79%. ceeded as follows when determining the pension.

25. Step 1: The years of pensionable service 27. Since the rate of pension under this were first calculated in accordance with alternative calculation would have been Paragraph 6 of the BeamtVG, i.e. periods higher than the rate resulting from the of part-time working were deducted from linear calculation under the law applicable the period of service to be taken into at that time, the City of Frankfurt am account ('actual period of service'). The Main, having regard to Paragraph 85(4) of actual period of service amounted to 30 the BeamtVG, compared that rate of pen- years and 142.5 days (30.39 years). Pur- sion with the rate resulting from a calcu- suant to Paragraph 14 of the BeamtVG lation only under Paragraph 14 of the (new version), this period of pensionable BeamtVG (old version), thus also including service was multiplied by 1.875%, which a pension abatement. resulted in a pension of 30.39 x 1.875 = 56.98125%, rounded up to 56.99%.

26. Step 2: As Mrs Schönheit was already 28. Step 3: In this process the notional an official on 31 December 1991, an pension was first calculated, i.e. the pen- alternative calculation was then made in sion which Mrs Schönheit would have accordance with Paragraph 85 of the received if she had worked full-time BeamtVG. In respect of the period from throughout her period of service ('notional 1 April 1965 until 31 December 1992 the period of service'). This notional period of period of pensionable service under service amounted to 34 years and 66 days Paragraph 6 of the BeamtVG amounted to (34.18 years). It would have resulted in a 26 years and 219 days, which was rounded rate of pension of 74%. This percentage up to 27 years. Under Paragraph 14 of the was then reduced in the ratio of actual BeamtVG (old version), but without the period of service to notional period of pension abatement which until then was service: 30.39 ÷ 34.18 x 74% = 65.80%.

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29. On 3 August 1999 Mrs Schönheit 33. By order of 5 January 2000 the Regie- raised an objection to the determination rungspräsidium Darmstadt determined Mrs of the amount of her pension. Becker's pension benefits at 52.18% of her pensionable remuneration.

30. By a decision of 4 January 2000 the City of Frankfurt am Main dismissed her objection. 34. The Regierungspräsidium Darmstadt proceeded as follows when determining the pension.

31. On 7 February 2000 Mrs Schönheit appealed to the Verwaltungsgericht Frank- furt am Main. She is seeking the annulment 35. Step 1: Mrs Becker's years of pension- of the order of 12 July 1999 and of the able service were first calculated in accord- decision of 4 January 2000. She is also ance with Paragraph 6 of the BeamtVG. demanding that the City of Frankfurt am The result was 25 years and 83.58 days Main award her a pension of at least (25.23 years). These years of pensionable 70.79%. service were then multiplied, pursuant to Paragraph 14(1) of the BeamtVG (new version), by 1.875, which gave a pension rate of 25.23 x 1.875% = 47.30625%, which was rounded up to 47.31%.

Case C-5/02

36. Step 2: As Mrs Becker was already an official on 31 December 1991, an alter- 32. Mrs Becker, who was born on 15 July native calculation was made in accordance 1951, was employed as a subject teacher by with Paragraph 85 of the BeamtVG. In the Land of Hesse from 23 August 1971. respect of the period until 31 December From 1 August 1981 until 31 July 1989 she 1991 the period of pensionable service worked part-time for a number of periods under Paragraph 6 of the BeamtVG of varying duration. From 1 August 1989 amounted to 18 years and 228.32 days, until 31 July 1995 she took unpaid leave, which was rounded up to 19 years. Under and from 1 August 1995 she again worked Paragraph 14 of the BeamtVG (old ver- part-time. From 1 February 2000 her sion), but without the pension abatement, employer granted her a retirement pension the rate of pension amounted to 53%. In on the ground of incapacity for service. respect of the period from 1 January 1992

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until 31 July 1999 the period of pension- 40. On 21 December 2000 Mrs Becker able service pursuant to Paragraph 6 of the lodged an appeal. She is seeking the annul- BeamtVG was 4 years and 341.93 days ment of the order of the Regierungspräsid- (4.94 years), resulting in a pension entitle- ium Darmstadt of 5 January 2000 as set out ment of 4.94%. The total pension therefore in the decision on the objection of amounted to 53% + 4.94% = 57.94%. 30 November 2000. She is also demanding that her pension be calculated at at least 57.94%.

37. Step 3: Finally, the pension was calcu- lated in accordance with Paragraph 85(4) of the BeamtVG, with the pension abate- Questions submitted for a preliminary ment applied. The notional pension was ruling first calculated. Mrs Becker's notional period of service amounted to 32 years and 78.68 days (32.22 years). This notional period of service would have given her a rate of pension of 72%. The pension 41. By a decision of 12 November 2001 the abatement was then applied: 25.23 (actual Verwaltungsgericht Frankfurt am Main period of service) ÷ 32.22 (notional period submitted nine questions for a preliminary of service) x 72% (notional pension), which ruling in Case C-4/02 and 11 such ques- ultimately resulted in a rate of pension of tions in Case C-5/02. 52.18%.

42. According to the referring court, both appeals are well founded. It maintains that the provisions of Paragraph 14 of the BeamtVG (old version) concerning the 38. On 8 February 2000 Mrs Becker raised pension abatement for part-time working an objection to the determination of her is incompatible with Article 141 EC since it pension. gives rise to indirect discrimination on the ground of sex.

43. The referring court explains that offi- 39. By a decision on the objection dated cial statistics reveal it is predominantly 30 November 2000 the Regierungspräsid- women who work part-time. When pen- ium Darmstadt dismissed the objection. sions are determined, it is therefore pre- I - 12588

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dominantly women who are affected by the of indirect discrimination on the ground of pension abatement. sex. 6 According to this view, the second c l a u s e of t h e first s e n t e n c e of Paragraph 14(1) of the BeamtVG (old version) was meant to correct the relatively more favourable treatment of officials working other than full-time that resulted from the former degressive pension scale.

44. According to the referring court, there 46. As views differ on the interpretation of are no clear objective factors to justify the the relevant Community legislation, the difference of treatment. The aim pursued referring court decided to refer the follow- by the authorities of saving costs by intro- ing questions to the Court of Justice for a ducing the pension abatement cannot in preliminary ruling: itself be seen as justification for the dif- ference of treatment.

— In Cases C-4/02 and C-5/02

'1. Is the grant of an old-age pension under the BeamtVG subject to Article 119 of 45. This position contrasts, however, with the EC Treaty, now superseded by that of the Bundesverwaltungsgericht (Fed- Article 141(1) and (2) EC, in conjunc- eral Administrative Court). This court tion with Directive 86/378/EEC or the takes the view that the reduction of pen- provisions of Directive 79/7/EEC? sions in proportion to working time in the case of part-time working and unpaid leave does not amount to inadmissible indirect discrimination against women, even though far more women than men take advantage of such dispensations. It argues that awar- ding pensions only in proportion to the 2. Do benefits under the BeamtVG con- length of service is, like the reduction or stitute a scheme under Article 6(1)(h) withholding of pay, a consequence of more of Directive 86/378/EEC with the con- limited performance and is therefore objec- tively justified; there can therefore be a priori no question of an infringement of a 6 — Bundesverwaltungsgericht, judgment of 23 April 1998, 2 C 2.98, ZBR 1998, pp. 357 ff.; judgment of 22 July 1999, 2 prohibition in Community law of direct or C 19.98, ZBR 2000, pp. 38 ff.

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sequence that, irrespective of their 5. In so far as, in parallel with or addition being financed by budgetary resources, to those intentions and grounds (see it is legitimate to take into account Question 4), regard may also be had to actuarial factors or analogous matters other legitimate aims of the legislation in order to differentiate levels of bene- as justificatory factors within the fit? meaning of Article 2(2) of Directive 97/80/EC, or the case-law of the Court of Justice on establishing the existence of indirect discrimination on the ground of sex, can a national court in that connection establish of its own motion the existence of legitimate aims for a provision of law and, where appropriate, use them to justify a 3. Are the factors required to justify indi- distinguishing criterion, in particular rect discrimination on the ground of where its reasoning in that regard is sex provided for by Article 2(2) of founded on considerations inherent in Directive 97/80/EC applicable in the the scheme of the law? Can it also do case of Article 119 of the EC Treaty so where such considerations are not and Article 141(1) and (2) EC, as well discernibly reflected in the grounds for as Directive 86/378/EEC, irrespective the enactment documented in the of whether a question arises in judicial course of the legislative procedure? proceedings as to relaxation of the burden of proof or whether that ques- tion is of no significance under the principle applicable to judicial pro- ceedings of official establishment of facts?

6. Can the discrimination initially appar- ent in the calculation of the pensions of older female part-time civil servants as a proportion of final salary be justified on the ground that it is necessary to 4. Is an apparently neutral criterion in a achieve a legitimate aim where that legal provision to be judged as to its discrimination is intended, as it were, necessity solely on the basis of the to offset a minimum pension acquired intention of the legislature and the during the first 10 years of service with grounds for enactment which are no account being taken of the reduced apparent from the legislative process, working time, although civil servants' in particular where the existence of pension benefits are met solely from such intentions and grounds is docu- general budgetary resources without mented in the procedure leading to any contribution by female officials? adoption of the legislation and demon- As justification for such necessity, if strably constituted the relevant reason appropriate on an ancillary basis, can for the enactment? reference be made to the fact that

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pension benefits are in the nature of can additional personnel costs incurred maintenance support and to their char- in the recruitment of additional persons acteristic as a traditional principle of by an expansion of part-time employ- the professional civil service under ment, in contrast to the hitherto pre- Article 33(5) of the Grundgesetz (Basic dominant full-time employment, justify Law)? the necessity of passing these costs on to part-time employees by way of a disproportionate reduction in their rate of pension, as occurred under the second and third clauses of the first sentence of Paragraph 14(1) of the BeamtVG in the version thereof appli- 7. If such discrimination is deemed cable until 31 December 1991? necessary under Question 6, is a reduc- tion in the rate of pension for older female and male officials with entitle- ment to benefits far above the mini- mum pension in respect of at least 10 reckonable years of service, applicable 9. Is it reasonable for such costs to be by virtue of their previous part-time taken into account as a matter of service, still reasonable (proportionate) necessity (Question 8) if the additional if the amount of such reduction is costs are passed on solely to earlier calculated by reference not only to the part-time employees, so that women, extent of the reduced working time on for by far the most part, must bear a linear basis but also, to the detriment them, even though the expansion of of those concerned, to the duration of part-time employment opportunities at full-time employment in relation to the time of the legislative amendment that of part-time employment — even in that regard principally pursued the though for older female and male civil objective of reducing general unem- servants the possibly disproportion- ployment by the partial absorption of ately favourable grant of a minimum surplus male and female applicants to pension irrespective of the reduction of the civil service?' their working time is no longer poss- ible? Would it not in this context be (more) appropriate to abandon the disproportionate reduction in the rate of pension for older and longer-serving female and male officials and instead for there merely to be a proportionate In Case C-5/02 reduction in the minimum pension?

'10.Does the Protocol concerning Article 119 of the EC Treaty as part 8. Where the numbers of budgetary and of the Treaty on European Union of established posts remain unchanged, 1992 (OJ 1992 C 191, p. 68) generally

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preclude examination under action, Mrs Schönheit (Case C-4/02) and Article 141(1) and (2) EC (formerly Mrs Becker (C-5/02), by the German Gov- Article 119 of the EC Treaty) of the ernment and by the Commission. On detailed rules for the inclusion of 6 March 2003 a hearing took place at periods of employment prior to which Mrs Becker and the Commission 17 May 1990? Does the prohibition explained their positions in greater detail. on such examination also apply where after 17 May 1990 the provisions relevant to the inclusion of periods of employment completed before the rel- evant date of 17 May 1990 have been amended but those amendments effect only a partial adjustment to meet the requirements of Article 119 of the EC Treaty and, for certain categories, IV — Assessment effect no such favourable adjustment?

Preliminary comments 11. In determining adherence to the rel- evant date of 17 May 1990 in the enactment of laws is the date of pub- lication in the official gazette decisive, or is the matter determined by the 48. The questions submitted for a prelimi- conclusion of deliberations in the legis- nary ruling concern the German pension lative bodies — even where the assent scheme for officials and more specifically of the Federal Government is required the abatement of the pensions of officials by law?' working part-time for which this scheme provides.

49. Before these questions are considered, Proceedings before the Court it will be helpful to describe the operation of the German system as it once was, as it operated with the abatement and as it operates now. Although it is for the Ger- man court, as the court with full knowledge of the facts, to interpret and enforce the 47. By decision of 8 February 2002 the rules, I would none the less like to dwell on President of the Court joined the two cases. this aspect briefly with a view to making Written comments have been submitted to the following more readable and compre- the Court by the applicants in the main hensible.

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50. Initially, until the end of 1991, this family reasons and under the regulation system was characterised by a degressive concerning special leave. The flat-rate scale of increases, with a minimum rate of deduction was also replaced with a pro- 35% for the first 10 years, a 2% increase portional reduction of pensions. The fol- for each of the following 15 years of service lowing formula was applied in this context: and a further increase of 1% for each (actual period of service ÷ notional period remaining year of service, up to a maxi- of service) x notional pension. The differ- mum of 75%. ence between notional pension and the pension calculated in accordance with this formula is the pension abatement. How- ever, pensions may not amount to less than 35% after abatement.

51. In 1992 this degressive scale of increases gave way to a linear scale based on 40 years of service, the pension for each year of pensionable service being 1.875% up to a maximum of 75%.

54. From the sources cited in the order for reference it is evident that the introduction of the pension abatement was essentially intended to compensate for the costs 52. Any period worked part-time was and associated with the wider availability of continues to be taken into account in part-time working and the staff adminis- accordance with Paragraph 6 of the tration it entailed. BeamtVG. Thus an official who has worked part-time for 30 years, for example, is entitled to 15 years' worth of pension.

55. As indicated above, with effect from 1 January 1992 the degressive pension scale 53. The contested pension abatement dates provided for in Paragraph 14 of the back to the early 1980s. Its introduction BeamtVG was replaced by the Fifth amend- was associated with the expansion foi- ing law of 1990 with a linear pension scale. labour market policy reasons of the oppor- At the same time, the pension abate- tunity for officials to work part-time. Part- ment — which had been strongly criti- time working was initially taken into cised — was abolished. To enable the account through the reduction of the pen- change to be made from a degressive to a sion at a flat rate of 0.5% for each year of linear system, a transitional scheme was part-time working. In 1984 the pension needed for officials who had already been abatement was also introduced for unpaid in service before 31 December 1991. This is leave and the reduction of working time for defined in Paragraph 85 of the BeamtVG.

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56. According to that provision, officials notional pension, i.e. the pension which who were a l r e a d y in service on would be paid if the official concerned had 31 December 1991 retained any pension, worked full-time throughout his period of rights acquired before that date. To deter- service. The rate of pension is then calcu- mine what pension officials already in lated in relation to the actual period of service before 31 December 1991 will service. ultimately receive, a number of com- parative calculations have to be made.

60. The following example will serve as an 57. A calculation is first made on the basis illustration. Let us assume that an official of the new legislation, the period of service actually worked part-time being taken as has worked for 30 years on a part-time the starting point and multiplied by basis. His notional pension (as if he had 1.875%. worked full-time for 30 years) is then calculated as follows: 35% for the first 10 years; 30% (15 x 2%) for the 11th to the 25th year; and 5% (5 x 1%) for the 26th to the 30th year, making a total of 70%.

58. A second calculation is then made, based partly on the degressive scale appli- cable until 31 December 1991, as referred to in Paragraph 14 (old version), but with- out the pension abatement, and partly on the new legislation in respect of years of 61. If the pension abatement is now pensionable service thereafter. If the result applied, the result is a pension of 35% of this calculation is higher, this calculation (70% x 15/30). applies. In the case of officials who have worked part-time, however, this amount is limited by the third comparative calcu- lation (second sentence of Paragraph 85(4) of the BeamtVG).

62. If the pension abatement was not applied and the pension was calculated solely in accordance with Paragraph 6 of the BeamtVG, 15 years would have been 59. This third calculation does include the worked full-time, giving an entitlement to pension abatement provided for in the old 45% (35% for the first 10 years, 2% for version. The first step is to calculate the each of the remaining years). I - 12594

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63. A worker who worked full-time for 15 risks of old age within the meaning of years would similarly be entitled to a rate Article 3(1)(a) of Directive 79/7. Discrimi- of pension of 45%. nation is, after all, prohibited under Article 4(1) of that Directive. If Directive 86/378 was deemed applicable to the pension scheme, the same would be true since Article 5(1) of that Directive prohibits direct and indirect discrimination on the basis of sex inter alia in the calculation of benefits. 64. To summarise, part-time working is taken into account in the determination of pensions in two ways: first, in the deter- mination of the number of years of pen- sionable service and, then, through the pension abatement contested here. 67. Finally, in Case C-5/02 the referring court has submitted two further questions concerning the interpretation of what has come to be known as the Barber Protocol.

65. The third to ninth questions primarily concern the requirements that must be met to justify the indirect discrimination to which this pension abatement allegedly gives rise. They will be considered together below. The first tivo questions submitted for a preliminary ruling in Cases C-4/02 and C-5/02

66. The first two questions concern, in 68. According to the two applicants in the particular, the applicable Community legis- main action, the German Government and lation. In the order for reference the the Commission, the award of retirement referring court remarks that in its view pensions within the meaning of the Beam- the German pension scheme for officials tenversorgungsgesetz is governed by falls within the scope of Article 141 EC. It Article 141 EC. Reference is made in this adds that for the assessment of the dis- context to the judgments in Gerster, 7 crimination against women resulting from Beune, 8Griesmar 9 and Evrenopoulos. 10 the pension abatement it makes no dif- ference whether the pension scheme does not constitute pay within the meaning of 7 — Judgment in Case C-1/95 Center [1997] ECU I-5253. Article 119 of the EC Treaty (now 8 — Judgment in Case C-7/93 Beune [1994] ECR I-4471. Article 141 EC) or must be regarded as a 9 — Judgment in Case C-366/99 Griesmar [2001] ECR 1-9383. 10 —Judgment in Case C-147/95 F.vreimpaulns [1997] statutory system for protection against the LCR I-2057.

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69. The Commission and the German Assessment Government also maintain that Directive 79/7 is not applicable in this instance. They claim that pensions based on the Beamten- versorgungsgesetz are not pension pay- ments made under a statutory social secur- ity scheme within the meaning of Article 3 of that Directive.

72. I endorse the largely identical views 70. Directive 86/378 cannot, according to expressed by the applicants in the main the Commission, restrict the scope of action, the Commission and the German Article 141 EC. According to the German Government. In my opinion there is no Government, this Directive is applicable to doubt that the German pension scheme for the German system of pension provision for officials falls within the scope of Article 141 officials because the German system con- EC. The Court has already confirmed this forms to the definition given in Article 2 of in the aforementioned judgments in respect the Directive of an occupational social of the Dutch, French and Greek pension security scheme. The application of a schemes for officials and recently in the number of provisions of the Directive might Niemi judgment11in respect of the Finnish possibly be precluded by the specific fea- pension scheme for officials. It is evident tures of employment relationships gov- from this case-law that the decisive factor erned by public law, but this did not for the qualification of a pension scheme is extend, according to the German Govern- whether the pension is paid to the worker ment, to the prohibition of discrimination on the basis of an employment relationship under Article 5 of the Directive. between the person concerned and his former employer, i.e. whether it satisfies the criterion of 'employment' derived from the wording of Article 141 EC. The Ger- man pension scheme at issue satisfies this criterion. This scheme is applicable to a specific category of workers, the benefits 71. The German Government and the are determined by reference to the period of Commission take the view that the excep- service completed by those entitled, and tion referred to in Article 6(1)(h) of Direc- they are based on the final salary. The link tive 86/378 does not apply to the cases is thus forged between pension and employ- under consideration here. In this context ment relationship. As the pension benefits the German Government states that the under consideration are not payments pension abatement for officials who have made under a statutory social security previously worked part-time is not based scheme, Directive 79/7 does not apply to on an actuarial calculation within the them. meaning of this article, but emanates from the system underlying the German pension scheme for officials. 11 — Judgment in Case C-351/00 Niemi [2002] ECR I-7007.

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73. I agree, moreover, with the Commis- 76. According to the German Government, sion that the reference in the first question the conditions justifying indirect discrimi- submitted for a preliminary ruling makes nation, as defined in Article 2(2) of Direc- little sense since that Directive cannot tive 97/80, apply irrespective of the dis- restrict the scope of Article 141 EC, as the tribution of the burden of proof and Court has explicitly ruled, unnecessarily irrespective of whether the court is assigned perhaps, in paragraph 64 of the judgment an official or a more passive role in in Beune. national proceedings. Article 2(2) of Direc- tive 97/80, after all, summarises the Court's rulings in the area of indirect discrimi- nation, which applies irrespective of the distribution of the burden of proof or of the nature of national proceedings.

74. The answer to the second question, which is hardly a request for a more precise interpretation, can be kept very brief. As the German Government itself has already explained, the abatement rules contested in the main action have nothing whatever to do with actuarial calculation factors, as referred to in Article 6(1)(h) of Directive 86/378. It is therefore impossible to derive 77. Secondly, according to the German from this provision any argument to justify Government, considerations other than different levels of benefit. those referred to in the explanatory mem- orandum on the law may be taken into account to justify indirect discrimination. It deduces this from the judgment in Final- arte. 12 The referring court should therefore consider whether there are other justifica- tory grounds.

The third to ninth questions submitted for a preliminary ruling

75. The German Government contends 78. In this context the German Govern- that, even if women are placed at a great ment states that it can be deduced from disadvantage by the pension abatement, as national legislation that the pension abate- the referring court claims, this does not ment is a correction mechanism inherent in automatically mean that the pension abate- the system, its object being to prevent ment amounts to discrimination against former officials who worked part-time, since the abatement is justified by objective 12 —Judgment in Joined Cases C-49/98, C-50/98, C-52/98 to C-54/98 and C-68/98 to C-71/98 Finalarte [2001] factors unrelated to sex. ECR I-7831, paragraph 37 et seq.

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part-time officials from being better placed 81. The applicants in the main action point as a result of the former degressive system. out that the pension abatement results in a lower pension, by some 5% in their case, than that of a full-time official who has completed a similar number of years of pensionable service. The abatement dis- criminated against women in particular, because in Germany's public service it was predominantly women who worked on a part-time basis. That is not disputed; what is important, therefore, is the objective justification.

79. The pension abatement was therefore objectively justified since, when introduc- ing it, the national legislature had opted not for a rigid system of deductions but for a formula of individual calculations which reflected the relationship between actual years of pensionable service and years of pensionable service had part-time working not occurred. According to this formula, the longer the period of full-time working as a proportion of the total period of service, the smaller the pension abatement (in the event of part-time working or unpaid leave). 82. According to the applicants in the main action, there is no objective justification. They do not endorse the argument advanced by the German Government regarding preferential treatment. Only in well-defined circumstances could there be said to be an advantage. For all practical purposes, however, it was negligible. It was true that under the 35% rule of the old degressive pension scale officials working part-time and officials working full-time accumulated the same rate of pension in the first 10 years and that this could be con- 80. Furthermore, the financing of the sidered favourable for officials working increased staff administration costs result- part-time. If the same part-time officials ing from the expansion of the opportunity continued to work part-time for a further to work part-time had not been the decisive 10 years, this advantage was already factor in the introduction of the pension greatly reduced, since only their part-time abatement. It had been intended rather as a working was considered in the calculation. means of maintaining the internal balance Consequently, they still had 35% after 20 in the German pension scheme for officials. years, whereas officials who had worked

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full-time attained 55%. Full-time officials in unequal pay for men and women was benefited, moreover, from the 35% rule if inconsistent with Article 141 EC. they left the service after five years.

85. The Commission further points out that the German Government has con- tended that the introduction of the pension abatement was a necessary adjustment to the 35% rule. According to the Commis- 83. The Commission believes that sion, however, there is no justification for Paragraph 85 of the BeamtVG in conjunc- applying this abatement solely to part-time tion with the second clause of the first officials. sentence of Paragraph 14(1) of the BeamtVG (old version) makes for discrimi- nation on the ground of sex if those provisions result in more women than men being affected by the abatement when their pensions are determined and in the pensions of officials working part-time being reduced by a greater amount than 86. The Commission then states that Com- would have been the case if a pro rata munity law is not opposed to part-time temporis rule had applied. workers receiving pensions pro rata tem- poris. It does, however, oppose any meas- ure, such as a pension abatement, which results in a disproportionate reduction in pensions and thus in indirect discrimination on the ground of sex.

84. The Commission also contends that the introduction of the pension abatement was Assessment prompted by cost considerations. Referring to the judgment in Roks, 13 it claims that, while the Member States may cut back on their social systems for budgetary reasons, they may not do so in a manner which is inconsistent with Community law. A national scheme which was introduced 87. According to settled case-law, the pro- solely for budgetary reasons and resulted hibition imposed by Article 141 EC covers not only direct but also indirect discrimi- nation on the ground of sex. Indirect 13 —Judgment in Case C-343/92 Roks [1994] ECR I-571. discrimination occurs when a (national)

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provision or rule, though worded in neutral 91. It is ultimately for the national court to terms, in fact places women at a far greater determine whether such factors exist in the disadvantage than men, unless this differ- specific case before it. None the less, the ence of treatment is justified by objective dossier in the main action and the written factors unrelated to discrimination on the and oral observations of the parties enable ground of sex. the Court to give some indications which may be helpful to the referring court. 14

88. In the present case Paragraph 85(4) of the BeamtVG in conjunction with the second clause of the first sentence of Paragraph 14(1) of the BeamtVG (old version) is worded in sexually neutral terms. None the less, discrimination can be said to obtain if it is clear that signifi- cantly more women than men are affected by this legislation.

92. It is settled case-law that it is for the 89. In this context the referring court has Member State which has adopted the commented that it is evident from statistics allegedly discriminatory legislation to show that, as significantly more women than that this legislation reflects a legitimate aim men work part-time, it is primarily female and that the means of achieving this aim officials who are affected by the pension are necessary and reasonable. The Court's abatement. It would therefore seem at first rulings leave the Member States consider- glance that indirect discrimination exists. able scope for assessing the need to pursue social and employment objectives. 15 This scope is, however, restricted in that it may not have the effect of frustrating a funda- mental principle of Community law, such as that of equal pay for men and women. 16

90. In that case, it must be considered 14—Judgments in Case C-167/97 Seymour-Smith and Perez [1999] ECR I-623 and Case C-187/00 Kutz-Bauer [2003] whether there is any justification on the ECR I-2741. ground of objective factors unrelated to 15 — Judgments in Case C-317/93 Note [1995] ECR I-4625 and in the cases cited in the previous footnote. discrimination on the ground of sex. 16 — See the case-law cited in footnote 14.

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93. From the official sources cited in the 96. Although this reason is not explicitly order for reference it can be discerned that evident from the background to the passing the pension abatement was introduced for of the legislation relating to the pension budgetary reasons. It follows from the abatement, the introduction of such a Court's rulings that, although budgetary correction mechanism may be legitimate. considerations may underlie such a choice The question is, however, whether this of policy, they may not themselves con- legislation is necessary and reasonable. stitute the aim pursued by that policy and cannot therefore justify discrimination against one of the sexes. 17

97. It must first be said that simple, general declarations that the pension abatement at issue in the main action has a correction as its objective do not in themselves demon- strate that this abatement is unrelated to 94. If it transpires that the pension abate- discrimination on the ground of sex. Nor ment was introduced solely to save costs, I do they provide information on the basis of do not believe that this reason can serve as which it can reasonably be judged that the justification. means chosen were appropriate to achiev- ing that objective.

98. I would also point out that, although in 95. Referring to the case-law of the Bun- certain circumstances the minimum rate of desverwaltungsgericht, however, the Ger- 3 5 % which applied under the degressive man Government has also argued that the system could be to the advantage of part- pension abatement was intended as a time officials, the same was true of officials means of correcting the relatively more who had always worked full-time. Yet the favourable treatment of officials working pension abatement was introduced solely other than full-time that was due to the for part-time working. former degressive pension scale. A more favourable situation of this kind could not be avoided by taking part-time working into a c c o u n t solely on the basis of Paragraph 6(1) of the BeamtVG. The measure was therefore justified.

17 — Judgments in Roks, cited in footnote 13, and Kutz-Bauer, 99. That the abatement can be described as cited in footnote 14. disproportionate is evident from simple

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calculations and is illustrated in the of their service careers working part-time. example given in paragraphs 58 to 63. They are still confronted with this abate- ment and are therefore worse off than officials who were similarly in service before 31 December 1991, but have worked full-time and have the same number of years of pensionable service.

100. In fact, the introduction of the pen- sion abatement in the event of part-time working amounts, as it were, to the early introduction of the current linear system, which is based on 40 years of service. 18 However, this has led to officials who have worked part-time being treated differently from officials who have always worked full-time: their pensions are different even though they have completed the same number of years of pensionable service. 19

102. As the Commission has pointed out, Community law does not oppose a pro rata temporis pension abatement for part-time working. 20 A pro rata temporis reduction of this nature is implied by Paragraph 6 of the BeamtVG. The application of the second clause of the first sentence of Paragraph 14(1) of the BeamtVG (old version), however, (still) leads to an addi- 101. Although the pension abatement was tional abatement of pensions. If, besides abolished when the linear calculation sys- part-time working being considered when tem entered into force in 1992, it continues the number of years of pensionable service to be applicable under the transitional is determined, an additional — dispropor- legislation to officials who have spent some tionate •— pension abatement is applied, there is indirect discrimination on the ground of sex which cannot be justified 18 — The maximum pension is 75% under both the linear and on grounds of reduced working time or the the degressive system, although it is attained in the former case after 40 years of service and in the latter case after 35 need to rectify any preferential treatment years of service (on the basis of full-time working). If all 40 allegedly enjoyed by part-time employees. years are worked part-time, the pension under the linear system is 37.5% (20 x 1.875%). The same result is achieved under the degressive system by means of the pension abatement (75% x (20 ÷ 40)). 19 — See the previous footnote. Under the degressive system an 20 — See, for example, the judgments in Joined Cases C-399/92, official who had worked full-time for 20 years would have C-409/92, C-425/92, C-34/93, C-50/93 and C-78/93 a pension amounting to 55% of his final salary. See also Helmig [1994] ECR I-5727, Case C-333/97 Lewen [1999] the example given in paragraphs 58 to 63. A linear ECR I-7243, Case C-411/96 Boyle [1998] ECR I-6401 and calculation would give him 37.5%. Case C-249/97 Grüber [1999] ECR I-5295.

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The 10th and 11 th questions submitted foi- expectations and legal certainty but also a preliminary ruling in Case C-5/02 bore in mind the possibility of claims with a retroactive effect upsetting the financial balance of a number of pension schemes. The Commission therefore proposes in the written documents, in accordance with that 103. These questions concern the Barber judgment, that claims to equal treatment Protocol. In submitting these questions, the should not relate to periods before 17 May referring court is seeking to establish 1990. whether — contrary to this Protocol — periods of service occurring before the date of the ruling in the Barber case, 17 May 1990, may be taken into account if after 17 May 1990 the legislation applicable to periods of service before that date was subsequently amended, without however eliminating the unequal treatment involved for a certain group.

106. During the hearing the Commission and Mrs Becker's representative pointed out, however, that there is a difference between the present case and the Barber 104. The referring court states in this case. The Commission points out that the context that the Protocol is based on the latter case concerned a scheme that had judgment in Barber, in which the Court already been in existence for many years, restricted the effect of that judgment whereas in the present case the pension ratione temporis. As the ground for this abatement was allowed to stand by the restriction the Court based its ruling on the Fifth amending law of 1990 in respect of principle of legitimate expectations. The pension rights acquired in the period prior referring court doubts whether the prin- to the entry into force of that law. While ciple of legitimate expectations can be the M e m b e r States could reasonably relied upon in the present case, since the assume in the case of the Barber judgment authors of the legislation were aware of the that Article 141 EC did not apply to discriminatory effect of the pension abate- pension schemes, the same cannot be said ment, yet made an amendment which in of the period thereafter, i.e. after 17 May certain situations permits this effect to 1990. In this context the Commission persist. contends that the amending law was pub- lished on 28 May 1990 and thus a few days after the Barber judgment. The Commis- sion therefore believes that, strictly speak- ing, Germany cannot rely on the Barber Protocol where the abatement of Mrs Becker's pension is concerned. The prin- 105. In the written documents the Com- ciple of legitimate expectations did not mission has stated that the Court not only apply in the present case. Nor did legal considered the restriction ratione temporis certainty require that the abatement be from the angle of the principle of legitimate retained for prior periods.

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107. Mrs Becker agrees that the German Member States and the interested parties Government cannot rely on the principle of could not have been aware of such an legitimate expectations since, as the refer- interpretation at that time and in order to ring court has also stated, the authors of the prevent financial claims from having an legislation were aware of the indirect dis- unsettling effect on pension funds, the crimination. Furthermore, she believes that Court restricted this interpretation ratione the financial implications of not applying temporis. The Court explained later that the pension abatement which is inconsist- this ruling also applies to supplementary ent with Article 141 EC are insignificant. pensions, survivors' pensions, the transfer Finally, she points out that she was unable of pension rights and civil service pen- to lodge an earlier protest against the sions. 2 1 pension abatement retained in the transi- tional legislation. This was possible only in the case of a final decision on pensions, a preventive remedy being inadmissible under German law.

Assessment

110. The Court also explained in this subsequent case-law that, where these pen- sions are concerned, claims to equal treat- ment may be made only in relation to benefits payable in respect of periods of service subsequent to the date of the Barber 108. Further support for the Commission's judgment — 17 May 1990. 22 One excep- and Mrs Becker's argument cannot be tion to this exists in the case of workers or found in the text of the Protocol, in its those claiming under them w h o have, origins or in the rulings of the Court. before that date, initiated legal proceedings or raised an equivalent claim under the applicable national law. The Court abided strictly by the aforementioned date and exceptions thereto. The wording of the Barber Protocol is also clear in this regard.

109. In the Barber judgment the Court 21 — Judgments in Case C-110/91 Moroni [1993] ECR I-6J91, Case C-152/91 Neath [1993] ECR I-6935, Case C-200/91 ruled that contracted-out occupational pen- Coloroll [1994] ECR I-4389, Case C-408/92 Smith [1994] sions fall under the concept of pay as used ECR I-4435, Case C-7/93 Beune [1994] ECR I-4471, Case C-28/93 Van den Akker [1994] ECR I-4J27, Case C-J7/93 in Article 141 EC and that no distinction Vroege [1994] ECR I-4541 and Case C-128/93 Fisscher [1994] ECR I-4583. may therefore be made on the ground of 22 — See the judgment in Case C-109/91 Ten Oever [1993] sex in the award of such pensions. As the ECR I-4879.

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This Protocol ties in with the date of the had already initiated legal proceedings, Barber judgment. If the contracting parties they could have done so. It is therefore had wanted to make certain exceptions in inappropriate that an exception should be respect of periods of work before that date, made in Mrs Becker's case in respect of the apart from those in favour of persons who periods completed before 17 May 1990.

V — Conclusion

111. In view of the above I propose that the Court should answer the questions submitted by the Verwaltungsgericht Frankfurt am Main for a preliminary ruling as follows:

— Old-age pensions paid under the Beamtenversorgungsgesetz fall within the scope of Article 141 EC.

— Article 141 EC precludes national legislation, such as Paragraph 85(4) of the Beamtenversorgungsgesetz in conjunction with the second clause of Paragraph 14(1) of the Beamtenversorgungsgesetz (old version), if as a result of that legislation, which leads to a greater reduction in the pensions of officials working part-time than would be the case under a pro rata temporis

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scheme, more women than men are affected when their pensions are determined.

— It is for the national court, which has sole jurisdiction to assess the facts and interpret the national legislation, to determine whether and to what extent a legislative provision which, though applying independently of the sex of the worker, actually affects a considerably higher percentage of women than men, is justified by objective reasons unrelated to any discrimination on grounds of sex.

— By virtue of the Protocol concerning Article 141 EC, the direct effect of Article 141 EC may be relied upon, for the purpose of claiming equal treatment in the matter of pensions, only in relation to benefits payable in respect of periods of service subsequent to 17 May 1990, subject to the exception in favour of workers or those claiming under them who have, before that date, initiated legal proceedings or raised an equivalent claim under national law.

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