Irish Pensions Magazine Autumn 2013
8
that these changes are needed to reduce the financial
burden on the State by taking into account funding
challenges associated with longer life expectancy
“
in line with the Government’s National Pensions
Framework as set out in the EU/IMF Programme of
Financial Support for Ireland
”. That programme makes
it clear that the change is designed to reduce the
financial burden on the State, not to confer a windfall
benefit on retiring members of pension schemes by
changing integrated benefit designs.
Employment law considerations
There is no statutory retirement age in Ireland.
However many contracts of employment specify a
retirement age. The age of 65 is frequently chosen
to coincide with the date at which employees become
entitled to the State Pension. It is anticipated that
many more employees will now seek to work past the
age of 65 as they may not be in a position to retire at
that age without the State Pension.
Despite a clear provision in the Employment Equality
Acts to the effect that setting a compulsory retirement
age is not age discrimination, a number of cases
decided by the Court of Justice of the European Union
have required employers to objectively justify their
compulsory retirement age. Such cases have been
followed by the Irish Equality Tribunal.
Because of this employers may be required to
objectively justify their compulsory retirement age and
show it had legitimate aims connected with the nature
of the job and was an appropriate and necessary
means to achieve those aims.
In view of the potential risks of a claim of age
discrimination or unfair discrimination arising where an
employer seeks to enforce its retirement age, it would
be prudent for legal advice to be sought to assess the
level of risks involved.
Article Author
Deirdre Cummins
Senior Associate
Employment Pensions and
Benefits Group
Matheson
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