A YORK woman whose husband is about to have a sex swap operation after 35 years of marriage has won her battle to keep full pension rights.

Earlier this year, the Evening Press revealed the woman risked losing her entitlement to the man's occupational pension - despite the couple wanting to stay together.

Now the Government and insurance industry have agreed a deal to protect the woman's benefits after the man undergoes surgery.

Under the terms of the Government's Gender Recognition Bill, they will be forced to divorce when the transsexual husband registers his right to be legally recognised as a woman.

But, under concessions won by York's MP Hugh Bayley, they will have their union registered on the same day under the Civil Partnerships Bill.

The Civil Partnerships Bill is designed for gay couples, but Mr Bayley has been told it will be open to his constituents, who have three grown-up children.

As soon as the divorce and civil partnership are confirmed, all the pension rights will be transferred.

The woman, who gave up work to raise their children, now no longer risks left being left without support in her old age.

Mr Bayley said he was delighted to have secured the agreement with the National Association of Pension Funds and the Association of British Insurers.

"It will now be possible to transfer the pension rights seamlessly from the marriage to the civil partnership," he said.

The change has been agreed because of the plight of the York couple, but will apply to a handful of similar cases as well.

The couple, whose case was first revealed by the Evening Press in February, wanted the Gender Recognition Bill changed to allow them to remain married.

But the Government was unwilling to effectively sanction a legal marriage between two people registered in law as the same sex.

The Civil Partnership Bill, published last week, allows same sex couples to sign a register giving the right to pension, life assurance and tenancy rights.

Updated: 10:57 Tuesday, April 06, 2004