The Employment Equality (Age) Regulations were laid before
Parliament last Thursday.
As a result of the new Regulations, trustees of occupational
pension schemes will be unable to discriminate against any member
or prospective member on the basis of age (except in relation to
rights accrued before 1st October 2006 and subject to exceptions).
Occupational pension schemes will be treated as including a
provision requiring trustees to refrain from doing anything that is
unlawful under the age discrimination legislation.
The Regulations contain a large number of exceptions for pension
schemes, including minimum or maximum ages for admission to a
scheme. As far as personal pension plans are concerned, the age
discrimination legislation only applies to employer contributions.
Again, a large number of exceptions apply.
Simon Tyler, a Senior Associate with Pinsent Masons' pensions
team, said: "These regulations are more prescriptive than the draft
Regulations previously issued by the DTI. Some occupational pension
schemes will need to make amendments to ensure they do not fall
foul of the new requirements."
In particular, he said that trustees will need to check whether
the benefits provided to members on early retirement fall within
the relevant exceptions. "They may need to amend their schemes to
change the basis on which those benefits are paid in respect of
workers obtaining the right on or after 1st October 2006 to join
the scheme," he explained. "In addition, where contribution rates
to occupational or personal pension schemes are based on age,
employers and/or trustees will need to check that the relevant
exception applies."
