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End of Mandatory Retirement in BC: Navigating New Legislation and HR Challenges

The recent enactment of Bill 31 marks a transformative shift regarding mandatory retirement in British Columbia. Effective January 1, 2008, age discrimination laws now impact all individuals aged 19 and older, challenging previous assumptions about retirement age. Employers must reassess collective agreements, performance reviews, and employee benefits related to age. This guide outlines the legitimate grounds for mandatory retirement, accommodation strategies, and alternative retirement options while preparing organizations for compliance with the new law.

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End of Mandatory Retirement in BC: Navigating New Legislation and HR Challenges

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  1. MANDATORY RETIREMENT IN BC – THE END IS NIGH! Earl Phillips and Donovan Plomp May 2007

  2. Mandatory Retirement – The End is Nigh! • The New Law – Bill 31 • Age discrimination applies to everyone 19 or older • Effective January 1, 2008 • No retroactive effect • Does not change: • Bona fide occupational requirements • Benefits plans • Pension plans

  3. Mandatory Retirement – The End is Nigh! Bona Fide Occupational Requirements • Mandatory retirement is only a BFOR if: • Rationally connected to the job • Honest and good faith belief it is necessary • Impossible to accommodate without undue hardship • Will be difficult to establish a BFOR • Cogent, objective evidence necessary

  4. Mandatory Retirement – The End is Nigh! Benefits Plans • Bona fide group or employee insurance plans can discriminate on the basis of age • Will be extended to self insured and third party plans

  5. Mandatory Retirement – The End is Nigh! Pensions • Bona fide retirement, superannuation and pension plans can discriminate on the basis of age • That will continue • No change to CPP or EI entitlements • Proposed tax changes may prompt changes to BC pension legislation

  6. Mandatory Retirement – The End is Nigh! Collective Agreements • Review all collective agreements • Can encourage but not require retirement • Re-negotiation of some provisions may be necessary • How does collective agreement deal with benefits for employees over 65? • Silence may be deadly!

  7. Mandatory Retirement – The End is Nigh! Terminating Older Workers • Performance reviews • Functional abilities testing • Longer service means longer notice for termination • Greater scrutiny on whether termination decision based on age • Wallace damages

  8. Mandatory Retirement – The End is Nigh! Duty to Accommodate • Age related accommodation • Relaxed standards of performance? • More health care time off? • Workplace adjustments • Flex-time, part time, compressed time • Job sharing, tele-commuting • Not just for older workers • Individual assessments • Of employee • Of accommodation possibilities

  9. Mandatory Retirement – The End is Nigh! Alternatives • Phased retirement programs • Proposed tax changes for 2008 • Can get partial pension payments AND pension benefit accrual • Employment opportunities for retired workers • Mentoring / Training duties • Charitable or marketing activities

  10. Mandatory Retirement – The End is Nigh! • Voluntary Early Retirement Packages • Be careful to avoid: • Conduct which suggests age discrimination • Pressuring employees to accept retirement packages • Associating early retirement offers with job loss • Retirement planning assistance • Healthy living and fitness programs

  11. Mandatory Retirement – The End is Nigh! Prepare For End of Mandatory Retirement • Review and revise policies • Inventory all terms of employment and benefits tied to age • Consider BFORs and available evidence

  12. Mandatory Retirement – The End is Nigh! • Review • hiring policies for older workers • training and continuous learning programs • individualized testing systems • Document performance standards and reviews • Consider accommodation strategies

  13. Mandatory Retirement – The End is Nigh! • Review • safety strategies for older workers • positions for alternatives to mandatory retirement • collective agreements and re-negotiate if necessary • conform with legislative changes • is company required to continue employee benefits for employees after age 65?

  14. Mandatory Retirement – The End is Nigh! • Consult with benefits providers to determine effects, options and costs • Seek competitive bids on benefits plans • Ensure benefits plans can be changed from time to time

  15. Mandatory Retirement – The End is Nigh! Conclusion • Significant, not catastrophic • BC is following, not leading • HR challenges and opportunities • HR can be truly strategic

  16. Vancouver P.O. Box 10424, Pacific Centre Suite 1300 777 Dunsmuir Street Vancouver BC V7Y 1K2 Tel: 604-643-7100 Fax: 604-643-7900 Calgary Suite 3300 421 – 7th Avenue SW Calgary AB T2P 4K9 Tel: 403-260-3500 Fax: 403-260-3501 Toronto Box 48, Suite 4700 Toronto Dominion Bank Tower Toronto ON M5K 1E6 Tel: 416-362-1812 Fax: 416-868-0673 Ottawa The Chambers Suite 1400 40 Elgin Street Ottawa ON K1P 5K6 Tel: 613-238-2000 Fax: 613-563-9386 Montréal Suite 2500 1000 De La Gauchetière Street West Montréal QC H3B 0A2 Tel: 514-397-4100 Fax: 514-875-6246 Québec Le Complexe St-Amable 1150, rue de Claire-Fontaine, 7e étage Québec QC G1R 5G4 Tel: 418-521-3000 Fax: 418-521-3099 United Kingdom & Europe 5 Old Bailey, 2nd Floor London, England EC4M 7BA Tel: +44 (0)20 7489 5700 Fax: +44 (0)20 7489 5777

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