Important Update: Default Retirement Age Removal
Today, the Department of Business Innovation and Skills (BIS) has confirmed the phasing out of the Default Retirement Age (DRA) between 6 April and 1 October 2011.
The current DRA is 65, at which point employers can make staff retire regardless of their circumstances. The Governments view is that the rules should change to reflect the fact that people are living longer, healthier lives and can stay in work for longer.
What this means for Group Risk benefits
Group Risk benefits will be exempt, which means that these benefits will be able to be withdrawn from a fixed age.
This will initially apply to employees aged 65 and above and will rise in line with State Pension age.
Employers will not need to modify their insured Group Risk arrangements, assuming they already conform to the existing equal treatment (Age Discrimination) regulations.
We are delighted that the Government has recognised the value of Group Risk benefits to individuals, the society and the economy in particular as State Benefits are being withdrawn and there is more need than ever before for individuals to be protected from the impacts of illness, injury or death.