T Towards 20 14: The Change in d Th Ch i State Pension Age - - PowerPoint PPT Presentation

T d Th Ch i Towards 20 14: The Change in State Pension Age

IAPF DC Sem inar

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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

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Current Position

• No general compulsory retirement age
• No general compulsory retirement age
• Contractual retirement age

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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)

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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 t Q P k I l d Li it d (DEC E2012 119)

• Harte v Q Park Ireland Limited (DEC – E2012 – 119)
• Saunders v CHC Ireland Limited (DEC – E211 – 142)
• Doyle v ESB International (DEC – E2012 – 086)

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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

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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

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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

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• Take advice as necessary

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Som e Op tions:

• Work past NRA – late retirement

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• Retire and take fixed term contract
• Change contractual NRA

Consider both emplo ment and pensions implications Consider both employment and pensions implications

• f the options and action required – be aware of cost,

time, practicalities etc

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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 workforce statistics (e g gender age

• Review

workforce statistics (e.g. gender, age, qualifications) to identify those affected on or after 1 January 2014 and the numbers involved – remember

• bjective justification proven at time of the decision

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• 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

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Suggested to d o list

T t i th i t t d d d l t

• Trustees
• review

their trust deed and rules to understand the relevant provisions and potential problems/action needed e.g. definition

• f

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

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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

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