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

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

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

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

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

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!

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

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

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

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

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

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

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?

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

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

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