Pressure has been building in recent years for employers to allow employees to remain in the workforce for longer and to put in place more flexible retirement policies. This has been driven by employees looking to continue in the workforce and the Government wanting to see employers being more flexible in this area.
The Workplace Relations Commission has in place, a Code of Practice for Longer Working setting out how companies should engage with employees as they approach retirement. Important new “Employment (Restriction of Certain Mandatory Retirement Ages)” legislation is also in the pipeline, which will allow (but not compel) employees to continue in employment until the State pension age of 66, except in limited circumstances.
It is important that employers regularly review their retirement age policy to ensure they comply with evolving legislation and that they are well positioned to deal with any challenges from employees.
WTW has helped many companies in reviewing retirement age policy and developing innovative solutions in this area. We can also assist employers in planning for the new legislation, including:
- Assessing the implications for benefit provision in the period between the current contractual retirement age (often 65) and age 66.
- Ensuring changes needed to achieve a workable approach to benefit provision for this period are identified and implemented.
- Liaising with insurance companies to agree changes to death and disability contracts and
- Assisting with member communications so that any changes are communicated effectively and options open to employees are understood clearly.
