We have a contractual retirement age of 65 and two different pension schemes. For a number of our current staff, they will not be entitled to a State pension until they are 68. The issue of the 3 years between payment of occupational and state pensions is one which is being raised regularly. We are reluctant to change our contractual retirement age as this may create other issues for us, not least for those who will qualify for a State pension earlier. Are other companies removing a contractual retirement age or implementing other measures? Is this situation likely to change?
Posted in : First Tuesday Q&A NI on 4 June 2013
Emma-Jane Flannery
Arthur Cox
This issue may affect many employers in Northern Ireland who continue to enforce a contractual retirement age. Due to changes in the State pension age employees may face inconsistency between their contractual pension age (usually 65) and the age at which the State pension becomes available.
Employers who choose to enforce contractual retirement ages where this issue arises risk facing possible claims for age discrimination. Some retiring workers may find themselves forced into bringing such claims where they have limited savings or company pension benefits to rely on pending receipt of a State pension.
These claims are liable to be successful unless employers can: establish a legitimate
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Disclaimer:
The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.
Emma-Jane Flannery
Arthur Cox
The main content of this article was provided by Emma-Jane Flannery. Contact telephone number is 028 9023 0007 or email Emma-Jane.Flannery@arthurcox.com
View all articles by Emma-Jane Flannery