Age-discrimination pension rules now in force

Employers need to be aware of the new age-discrimination legislation applicable to pension schemes, in force from 1 December.

As previously reported in Legal Alert 34 and 35, the use of age-related criteria in relation to pension schemes was allowed to continue for two months beyond 1 October to allow for further amendments in this complex area.

Amending regulations have now been made that grant employers, trustees and schemes a wide range of exemptions. These will allow them to continue with many of their existing rules and practices (even though they are age related). The amendments also address a number of concerns raised during the consultation period.

There was speculation that the Government might provide a 'compliance window', when pension schemes would be able to introduce amendments for a period after the 1 December deadline without penalty. However, this will not take place as European legislation requires all the provisions to be implemented by 2 December 2006.

1 December 2006

Download the text of the new regulations from the Office of Public Sector Information website