What constitutes age discrimination ina retirement plan?

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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 13 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.


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