The Government has published its response to consultation on the abolition of the default retirement age (DRA) from 6 April 2011. Any employer wishing to dismiss an employee on the grounds of age from that date will have to objectively justify its decision. Transitional arrangements will apply to retirements which have been notified before 6 April 2011 where the date of retirement falls before 1 October 2011, allowing the retirement process to continue in accordance with the current rules.
The Government response can be found here
It is likely that in future there will be more employees remaining in employment after age 65. The law against age discrimination requires them to receive the same pension provision as younger employees, unless any of the exemptions in The Equality Act (Age Exceptions for Pension Schemes) Order 2010 apply, or the difference in treatment can be objectively justified. One exemption allows schemes to offer the option of an actuarial uplift instead of continued accrual after a specified age.
The consultation response confirms that an exception to the principle of equal treatment on the grounds of age will be introduced for group risk insured benefits provided by employers. This may well be of assistance in relation to insured death-in-service benefits but we will have to await the publication of the legislation before we can advise on the detail and extent of the exemption.