Respondent, a female employee of an Arizona state agency, instituted a class action in Federal District Court, alleging that the State’s deferred compensation plan for its employees discriminated on the basis of sex in violation of Title VII of the Civil Rights Act of 1964. Under the plan, employees have the option of receiving retirement benefits from one of several companies selected by the State, all of which pay lower monthly retirement benefits to a woman than to a man who has made the same contributions. The District Court granted summary judgment for the plaintiff class and ordered that retired female employees be paid benefits equal to those paid to similarly situated men. The Court of Appeals affirmed.
Held: The State’s retirement plan discriminates on the basis of sex in violation of Title VII, and all retirement benefits derived from contributions made after this decision must be calculated without regard to the beneficiary’s sex. But benefits derived from contributions made prior to this decision may be calculated as provided by the existing terms of the Arizona plan.
671 F.2d 330, affirmed in part, reversed in part, and remanded.