|What is it?|
The Employment Equality (Age) Regulations 206 are due to come into force on 1 October 2006, making age discrimination unlawful in Great Britain. Part of these Regulations deal with the effect that the prohibition on age discrimination will have on pension schemes.
An announcement was made today that the commencement date of the pension aspects of the Regulations has been delayed. These parts of the Regulations will now come into force from 1 December 2006, rather than 1 October 2006. Please note that this delay affects pensions only and will not impact on employment provisions in the Age Regulations, which will come into force as planned on 1 October.
The delay is to allow the Government to consider limited amendments and clarifications, with the aim of bringing these in at the same time or as soon as possible afterwards. There will be a period of informal consultation (early in October) in which comments will be provided on the proposed revised regulations.
The main areas being considered are:
- Regulation 32 - length of service for trustees;
Early Retirement Pivot Age/ Late Retirement Pivot Age - new definition;
Ill health, child and death benefits, including lump sums;
Lower Earnings Limit issues;
Actuarial calculations/ enhancements/ reductions etc;
Definition of sections;
Inland Revenue rules;
Group Personal Pensions and Personal Pensions; and DTI Guidance -ending existing text to reflect amendments.
|What does this mean for employers?|
Employers should proceed as normal in preparing themselves for the implementation of the remainder of the Regulations. However, employers who are considering making changes to their pensions schemes in response to the Regulations may wish to delay making such changes until the pensions aspects of the Regulations have been finalised.
If you require any further advice on the changes likely to be made or if you require assistance in making any submissions to be considered during the consultation, please contact us.