T Towards 20 14: The Change in d Th Ch i State Pension Age IAPF DC Sem inar www.iapf.ie
Cha llenges to Com p ulsory Retirem ent • Legal challenges to a specified retirement age Legal challenges to a specified retirement age • Increase in Stage Pension age – increased likelihood of legal challenge www.iapf.ie
Current Position • No general compulsory retirement age • No general compulsory retirement age • Contractual retirement age g www.iapf.ie
Current Position • Challenges to Section 34(4) of the Employment Equality g ( ) p y q y Acts 1998-2001 • Council Directive 2000/78/EC Council Directive 2000/78/EC • Employers must objectively justify retirement ages • Conflict between provisions of Directive and Section 34(4) www.iapf.ie
Ca se La w • Palacios de la Villa v Cortefiel Servicies SA (Case C411/05) • Donnellan v Minister for Justice, Equality and Law Reform Donnellan v Minister for Justice, Equality and Law Reform [2008]IEHC 467 • H Harte v Q Park Ireland Limited (DEC – E2012 – 119) t Q P k I l d Li it d (DEC E2012 119) • Saunders v CHC Ireland Limited (DEC – E211 – 142) • Doyle v ESB International (DEC – E2012 – 086) www.iapf.ie
Three Sta ge Test for Justify ing Age Discrim ina tion in Context of Com p ulsory Retirem ent 1. Do measures seek to achieve a legitimate aim 2. Is the aim legitimate in circumstances of the business; and 3. Are the means of achieving the aim proportionate www.iapf.ie
W ha t d oes the future hold ? • Postpone retirement age • Ask employee to retire and place employee on fixed term contract term contract • Align normal retirement age to state retirement age • Potential challenges under Unfair Dismissals Acts 1977-2007 1977 2007 • Increase in cost to State – job seekers allowance www.iapf.ie
Rea ctiv e v Pro-a ctiv e Resp onse • Employers and pension trustees should identify Employers and pension trustees should identify, consider and understand the challenges • Liaise to work on an informed solution • T k Take advice as necessary d i www.iapf.ie
Som e Op tions: • Work past NRA – late retirement p • Retire and take fixed term contract • Change contractual NRA Consider both emplo ment and pensions implications Consider both employment and pensions implications of the options and action required – be aware of cost, time, practicalities etc www.iapf.ie
Suggested to d o list Employers and trustees should liaise sooner rather than later having given initial consideration to their respective g g p issues • Employers - check their contractual retirement age • Review Review workforce workforce statistics statistics (e g (e.g. gender gender, age age, qualifications) to identify those affected on or after 1 January 2014 and the numbers involved – remember objective justification proven at time of the decision j j p • Take advice and decide response to requests to remain in employment beyond contractual retirement age – keep under review as case law or legislation develops • Consider and perhaps take advice on a communication process to raise awareness of the change www.iapf.ie
Suggested to d o list • T Trustees t - review i their th i t trust t d deed d and d rules l t to understand the relevant provisions and potential problems/action needed e.g. definition of NRA, integration, late retirement, amendment and risk benefit g , , provisions – cost etc • Trustee to take advice as necessary • • Trustees and employers to liaise to understand their Trustees and employers to liaise to understand their respective positions and devise a plan • Don’t forget related issues – e.g. administration, investment etc investment etc www.iapf.ie
Suggested to d o list • Engage in debates or consultations on the issues and make concerns/issues known – national issue known national issue • • Ignoring the change will not make it go Ignoring the change will not make it go away www.iapf.ie
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