Update on Repeal of the Default Retirement Age

Dated:   

The Government has just published The Employment Equality (Repeal of Retirement Age Provisions) Regulations 2011.

These confirm:

  • The exception to age discrimination legislation for retirement at age 65 (the Default Retirement Age) is to be abolished.
  • Transitional arrangements mean that:
    • the Default Retirement Age exception cannot be relied on for retirements where the notice of retirement is given after 6 April 2011
    • where the notice of retirement is given before 6 April 2011 the Default Retirement Age exception will continue to apply so long as the date of retirement is on or before 30 September 2011
  • From 6 April 2011 there is a new exception to age discrimination legislation to cover the restriction of provision of ’insurance or a related financial service’ to employees under the age of 65, or the state retirement age, whichever is the greater. The exception appears to only to cover insured benefits, not self insured benefits, although employers will no doubt seek to use this provision in support of a justification defence. Strangely, the exception does not appear to be restricted to insured benefits where age might affect the premium.

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