What constitutes age discrimination ina retirement plan?

Get Legal Help Today

 Secured with SHA-256 Encryption

What constitutes age discrimination ina retirement plan?

My company is changing our retirement base on how old we are. Those 30 years or older get 15% of their annual income and everyone else gets chased out.

Asked on November 23, 2010 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Unfortunately, as unfair as the following is, based on what you have written in your question, this is very likely NOT age discrimination. The age discrimination laws only protect the *older* workers. For example, the federal laws prohibiting age discrimination in employment protect workers over age 40--not those under age 40. It is perfectly legal to discriminate against younger workers, since only those forms of discrimination specifically prohibited by law are illegal. If employees aged less than 30 are the one who are being "chased out," that is very likely legal, since people under the age of 30 are generally protected by anti-age-discrimination laws.

Also, in regards to retirement plans specifically, companies have a right to phase out or change plans to the extent that benefits have not yet vested. If under the plan, workers younger than 30 have vested rights--e.g. a right to a certain amount of money--that must be honored; but if it has not yet vested, the company may make a change.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption