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High Court Decides Another Age Case

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In Kentucky Retirement Systems v. EEOC, the Supreme Court ruled that there was no age discrimination when a retirement plan credited additional years of service to employees who became disabled before they became eligible to retire–but not to employees who became disabled after they were eligible to retire.  The Court found that a decision based on retirement eligibility isn’t equivalent to one based on age. 

The Court has always tried to allow more flexibility to employers when applying the Age Discrimination in Employment Act (ADEA) to pension plans, although it’s a bit difficult to see how the specific language of the ADEA doesn’t make the pension plan in question discriminatory.  Since pension plans necessarily take age into account, have your lawyer take a look at your plan in light of this new case.

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