age discrimination in employee benefits
Age Discrimination. Age discrimination involves treating someone (an applicant or employee) less favorably because of his or her age. The Age Discrimination in Employment Act (ADEA) only forbids age discrimination against people who are age 40 or older. It does not protect workers under the age of 40, although some states do have laws that protect younger workers from age discrimination. EXAMPLE - CP, age 60, alleges age discrimination in disability retirement benefits. The employer asserts that these benefits are based on a formula that takes account of salary level and years of service at the date that an employee leaves the work force. The plan contains no explicitly age-based criteria. Under age discrimination legislation, employers can provide service-related benefits up to five years of service. After this, it must be able to show that the practice is legitimate to achieving a business aim. Article in full. Pensions are one of the trickier areas covered by the age discrimination legislation. Although many exemptions exist, for example, around minimum and maximum entry ages and waiting periods for admission to a scheme, the status of other practices is still unclear. EXAMPLE - Employer Q pays $1,000 per employee for its employees to participate in a group life insurance plan. Under the plan, employees who are 59 years of age or younger are entitled to $200,000 in life insurance benefits, while employees who are 60 or older are entitled to only $2,000 in benefits. Carolyn Wilkinson, senior employee benefits manager at PricewaterhouseCoopers, says some employees used to be given an increase in their flex funding when they reached the age of 30. From 1 October, this increase will take place once an employee has five years’ service instead. Who is protected from age discrimination? The Age Discrimination in Employment Act (ADEA) is the main federal source of protections against age discrimination across the United States. The Act covers employees 40 years of age or older. The Equal Employment Opportunity Commission is hereinafter referred to as the Commission. The terms person, employer, employment agency, labor organization, and employee shall have the meanings set forth in section 11 of the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. 621 et seq., hereinafter referred to as the Act. Section 12(a) was amended in October of 1986 by the Age Discrimination in Employment Amendments of 1986, Pub. L. 99-592, 100 Stat. 3342 (1986), which removed the age 70 limit. Section 12(a) provides that the Act's prohibitions shall be limited to individuals who are at least forty years of age. Older workers face unique problems later in their careers. Despite the fact that nearly half of the workforce is 40 years of age or older, age discrimination remains a prevalent issue in the workforce; in recent years, filed complaints of age discrimination have risen to as high as 25,000 annually.
Under the group life insurance plan employees who are 59 years of age or younger are entitled to $200,000 in life insurance benefits, while employees who are 60 or older are entitled to only $2,000 in benefits.