08 September 2006 - Additional two-months for pension schemes to adjust to age -discrimination rules
Pension provisions, forming part of the Government’s new age-discrimination legislation, will not now come into force until 1st December 2006. This will give schemes more time to adjust to the new rules.
Minister for Pensions Reform James Purnell announced the measure today in response to concerns voiced by industry and employers. The provisions form part of the Employment Equality (Age) Regulations that come into force on 1st October this year.
The additional period will give schemes more time to adjust to the new regulations following significant activity in the pensions sector. It will also allow a short informal consultation period to assess whether any amendments are required to provide greater clarity for schemes and employers.
Mr Purnell said:
“We have listened carefully to the concerns voiced by employers and decided to hold off on implementing the pensions aspects of the legislation to allow more time for the industry to get to grips with the changes.
“During the intervening time we shall be running an informal consultation in which we will investigate whether any amendments should be made to the current regulations.
“We are committed to making sure any new regulations concerning pensions contribute towards the overall goal of encouraging more people to provide for their future.”
The Employment Equality (Age) Regulations 2006 implement the age strand of the European Employment Directive 2000/78/EC. The Regulations outlaw unjustified age discrimination in employment and vocational training, including pay and pensions.
Notes to Editors
- Employment Equality (Age) Regulations, coming into force Oct 1, implement the age strand of the European Employment Directive 2000/78/EC. The Regulations outlaw unjustified age discrimination in employment and vocational training, including pay and pensions. The overall lead on these Regulations lies with DTI although DWP will be leading on the pensions aspects.
- Article 6.1 of the Directive 2000/78/EC (establishing a framework for equality in employment and occupation) allows Member States to include exemptions in national legislation for age discriminatory practices which are objectively and reasonably justified. Article 6.2 of the Directive also allows exemptions in relation to some aspects of occupational pension schemes.
- Schedule 2 of the Regulations sets out those age related aspects of the operation of occupational pension schemes that will continue to be allowable without having to be objectively justified by the schemes themselves. If a scheme wishes to continue with an age related practice not covered by Schedule 2, it will still be able to do so as long as the scheme itself can objectively justify the activity.
- In considering what further amendments may be necessary the Government will seek to reduce any period of uncertainty that schemes and their advisors may face between the new implementation date and any future changes.
- The Government’s Pensions White Paper “Security in Retirement: towards a new pensions system” was published on 25th May 2006. Hard copies can be obtained from The Stationery Office or downloaded from the DWP’s website at www.dwp.gov.uk/pensionsreform
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