Old maternity leave doesn't count

WASHINGTON — Women who took maternity leave before Congress outlawed pregnancy discrimination could be stuck with lower retirement paychecks after the Supreme Court refused to let four women sue AT&T Corp. for higher pension payments.

The high court, in a 7-2 ruling issued Monday, overturned a lower-court decision that said decades-old maternity leaves should count in determining pensions.

The court's decision "forces women to pay a high price today because their employers discriminated yesterday," said Debra L. Ness, president of the National Partnership for Women and Families.

Four AT&T Corp. employees who took maternity leave between 1968 and 1976 sued the company to get their leave time credited toward their pensions. Their pregnancies occurred before the 1979 Pregnancy Discrimination Act, which barred companies from treating pregnancy leaves differently from other disability leaves.

AT&T lawyers said their pension plan was legal when the women took pregnancy leave, so they shouldn't have to recalculate their retirement benefits now. Congress did not make the Pregnancy Discrimination Act retroactive, they said, so the women should not get any extra money.

A majority of the justices agreed. "A seniority system does not necessarily violate the statute when it gives current effect to such rules that operated before the PDA," wrote Justice David Souter, who will retire next month.

Rae T. Vann, lawyer for the Equal Employment Advisory Council, called the decision a "sensible and straightforward ruling."

"Congress intended the Pregnancy Discrimination Act to be applied prospectively, not retroactively," she said. AT&T's pension rules "were lawful as they were applied at the time."

Justices Ruth Bader Ginsburg and Stephen Breyer dissented. By making it illegal to discriminate against women on pregnancy leave, "Congress intended no continuing reduction of women's compensation, pension benefits included, attributable to their placement on pregnancy leave," said Ginsburg, the court's only woman.

The court's decision could affect thousands of women who took pregnancy leaves decades ago and now are headed toward retirement, said Christine L. Owens, executive director of the National Employment Law Project. Now, the only way women who took pregnancy leave before 1979 can make their leave time count is through the good graces of their company or through legislation by Congress, she said.