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MANDATORY RETIREMENT IN BC – THE END IS NIGH!

MANDATORY RETIREMENT IN BC – THE END IS NIGH!. Earl Phillips and Donovan Plomp May 2007. Mandatory Retirement – The End is Nigh!. The New Law – Bill 31 Age discrimination applies to everyone 19 or older Effective January 1, 2008 No retroactive effect Does not change:

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MANDATORY RETIREMENT IN BC – THE END IS NIGH!

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  1. MANDATORY RETIREMENT IN BC – THE END IS NIGH! Earl Phillips and Donovan Plomp May 2007

  2. Mandatory Retirement – The End is Nigh! • The New Law – Bill 31 • Age discrimination applies to everyone 19 or older • Effective January 1, 2008 • No retroactive effect • Does not change: • Bona fide occupational requirements • Benefits plans • Pension plans

  3. Mandatory Retirement – The End is Nigh! Bona Fide Occupational Requirements • Mandatory retirement is only a BFOR if: • Rationally connected to the job • Honest and good faith belief it is necessary • Impossible to accommodate without undue hardship • Will be difficult to establish a BFOR • Cogent, objective evidence necessary

  4. Mandatory Retirement – The End is Nigh! Benefits Plans • Bona fide group or employee insurance plans can discriminate on the basis of age • Will be extended to self insured and third party plans

  5. Mandatory Retirement – The End is Nigh! Pensions • Bona fide retirement, superannuation and pension plans can discriminate on the basis of age • That will continue • No change to CPP or EI entitlements • Proposed tax changes may prompt changes to BC pension legislation

  6. Mandatory Retirement – The End is Nigh! Collective Agreements • Review all collective agreements • Can encourage but not require retirement • Re-negotiation of some provisions may be necessary • How does collective agreement deal with benefits for employees over 65? • Silence may be deadly!

  7. Mandatory Retirement – The End is Nigh! Terminating Older Workers • Performance reviews • Functional abilities testing • Longer service means longer notice for termination • Greater scrutiny on whether termination decision based on age • Wallace damages

  8. Mandatory Retirement – The End is Nigh! Duty to Accommodate • Age related accommodation • Relaxed standards of performance? • More health care time off? • Workplace adjustments • Flex-time, part time, compressed time • Job sharing, tele-commuting • Not just for older workers • Individual assessments • Of employee • Of accommodation possibilities

  9. Mandatory Retirement – The End is Nigh! Alternatives • Phased retirement programs • Proposed tax changes for 2008 • Can get partial pension payments AND pension benefit accrual • Employment opportunities for retired workers • Mentoring / Training duties • Charitable or marketing activities

  10. Mandatory Retirement – The End is Nigh! • Voluntary Early Retirement Packages • Be careful to avoid: • Conduct which suggests age discrimination • Pressuring employees to accept retirement packages • Associating early retirement offers with job loss • Retirement planning assistance • Healthy living and fitness programs

  11. Mandatory Retirement – The End is Nigh! Prepare For End of Mandatory Retirement • Review and revise policies • Inventory all terms of employment and benefits tied to age • Consider BFORs and available evidence

  12. Mandatory Retirement – The End is Nigh! • Review • hiring policies for older workers • training and continuous learning programs • individualized testing systems • Document performance standards and reviews • Consider accommodation strategies

  13. Mandatory Retirement – The End is Nigh! • Review • safety strategies for older workers • positions for alternatives to mandatory retirement • collective agreements and re-negotiate if necessary • conform with legislative changes • is company required to continue employee benefits for employees after age 65?

  14. Mandatory Retirement – The End is Nigh! • Consult with benefits providers to determine effects, options and costs • Seek competitive bids on benefits plans • Ensure benefits plans can be changed from time to time

  15. Mandatory Retirement – The End is Nigh! Conclusion • Significant, not catastrophic • BC is following, not leading • HR challenges and opportunities • HR can be truly strategic

  16. Vancouver P.O. Box 10424, Pacific Centre Suite 1300 777 Dunsmuir Street Vancouver BC V7Y 1K2 Tel: 604-643-7100 Fax: 604-643-7900 Calgary Suite 3300 421 – 7th Avenue SW Calgary AB T2P 4K9 Tel: 403-260-3500 Fax: 403-260-3501 Toronto Box 48, Suite 4700 Toronto Dominion Bank Tower Toronto ON M5K 1E6 Tel: 416-362-1812 Fax: 416-868-0673 Ottawa The Chambers Suite 1400 40 Elgin Street Ottawa ON K1P 5K6 Tel: 613-238-2000 Fax: 613-563-9386 Montréal Suite 2500 1000 De La Gauchetière Street West Montréal QC H3B 0A2 Tel: 514-397-4100 Fax: 514-875-6246 Québec Le Complexe St-Amable 1150, rue de Claire-Fontaine, 7e étage Québec QC G1R 5G4 Tel: 418-521-3000 Fax: 418-521-3099 United Kingdom & Europe 5 Old Bailey, 2nd Floor London, England EC4M 7BA Tel: +44 (0)20 7489 5700 Fax: +44 (0)20 7489 5777

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