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Government confirms withdrawal of Default Retirement Age

 

The Default Retirement Age (DRA) will be withdrawn later this year, the Government has confirmed.

 

From 6 April 2011 employers will no longer be able to issue any notifications for compulsory retirement using the DRA procedure, the Employment Relations Minister Edward Davey told MPs.

 

The measure is being phased in between April and October to give firms time to prepare for the changes.

 

During the transitional period, retirements that were already in motion can continue through to completion, provided that:

·         a notification of retirement is issued by the employer prior to 6 April 2011;

·         the date of retirement falls before 1 October 2011; and

·         the requirements of the statutory retirement procedure are met.

 

Retirements using the DRA will therefore cease completely on 1 October 2011.

 

‘Older workers have a lot to offer in the workplace and it's time we got rid of this outdated form of age discrimination. We will do all we can to support businesses with the change,’ said Mr Davey.

 

The announcement coincides with the publication of the Pensions Bill, which sets out plans to automatically enrol all employees into a pension.

 

The Bill also includes details of the Government’s proposals to increase the state pension age to 66.