Kleinsteuber (Social policy - Equal treatment : Judgment) [2017] EUECJ C-354/16 (13 July 2017)

Kleinsteuber (Social policy - Equal treatment : Judgment) [2017] EUECJ C-354/16 (13 July 2017)

The Court held that EU law does not preclude national legislation which, in calculating occupational pensions, distinguishes between income below and above the statutory pension ceiling and does not require calculation based on notional full-time income for part-time workers, provided the pro rata temporis principle is respected and objective justification exists. The use of a uniform rate of activity for full-time and part-time periods is permissible if it does not violate the pro rata temporis rule. Capping reckonable years of service does not constitute prohibited age discrimination if it is justified by legitimate aims and is appropriate and necessary.

Citation
[2017] EUECJ C-354/16
Parties
Applicant: Ms Ute Kleinsteuber; Respondent: Mars GmbH
Jurisdiction
European Union
Judgment Date
13 July 2017
Procedural Posture
Preliminary Ruling Reference / Judgment of the Court of Justice of the European Union
Outcome
Reference answered; national legislation not precluded by EU law as interpreted.
Legal Topics
Part Time Work, Occupational Pensions, Non Discrimination, Equal Treatment, Pro Rata Temporis, Indirect Discrimination, Age Discrimination
Labour Law European Union Law Social Security Law Part Time Work Occupational Pensions Non Discrimination Equal Treatment Pro Rata Temporis +2 more

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Parties

Ms Ute Kleinsteuber

Applicant

Mars GmbH

Respondent

Procedural Posture

Preliminary Ruling Reference / Judgment of the Court of Justice of the European Union

Legal Issues

  1. 1 Whether national legislation on occupational pension calculation using a 'split pension formula' discriminates against part-time workers under EU law.
  2. 2 Whether applying a uniform rate of activity for full-time and part-time periods in pension calculation violates the pro rata temporis principle.
  3. 3 Whether capping reckonable years of service for occupational pensions constitutes indirect age discrimination.

Ratio Decidendi

The Court held that EU law does not preclude national legislation which, in calculating occupational pensions, distinguishes between income below and above the statutory pension ceiling and does not require calculation based on notional full-time income for part-time workers, provided the pro rata temporis principle is respected and objective justification exists. The use of a uniform rate of activity for full-time and part-time periods is permissible if it does not violate the pro rata temporis rule. Capping reckonable years of service does not constitute prohibited age discrimination if it is justified by legitimate aims and is appropriate and necessary.

Court Disposition

Reference answered; national legislation not precluded by EU law as interpreted.

Orders

  • Clause 4.1 and 4.2 of the Framework Agreement and Article 4 of Directive 2006/54/EC do not preclude the national legislation on split pension formula for part-time workers.
  • Clause 4.1 and 4.2 of the Framework Agreement and Article 4 of Directive 2006/54/EC do not preclude use of a uniform rate of activity for full-time and part-time periods, subject to compliance with the pro rata temporis rule.