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Abolition of default retirement age

Napthens - February 17th 2011

Government publishes draft regulations abolishing the default retirement age and introduces an exception to insured benefits.

The Government has now published the Draft Employment Equality (Repeal of Retirement Age Provisions) Regulations 2011, which phase out the Default Retirement Age (DRA) of 65 from 6 April 2011.

As expected, the Government has introduced an exception to the age discrimination rules so that employers can stop offering employees insured benefits, such as life assurance and private medical cover, beyond whichever is the greater of 65 and the state pension age.

Businesses had been concerned that the removal of the DRA could lead to substantial costs for providing insured benefits for the over 65.