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New Law to End Mandatory Retirement Will Allow Ontarians to Decide When to Retire

Plan Offers Fairness and Choice; Protects Existing Rights and Benefits

TORONTO, Dec. 8 /CNW/ - Ontario's new law to end mandatory retirement will provide greater fairness and choice for workers aged 65 and older, Labour Minister Steve Peters announced today. 

"Ending mandatory retirement is the right thing to do. It provides choice and removes discrimination in the workplace against older workers without undermining existing rights to pensions, early retirement and benefits plans," said Peters.

The Ending Mandatory Retirement Statute Law Amendment Act is expected to receive Royal Assent shortly. The legislation will take effect one year later.

"We want to give Ontarians time to get ready for the change. Some employers, for instance, may need to adapt their human resources policies and practices to comply with the law," said Peters. "People are healthier and living longer so it is unfair to insist that they stop working simply because they turn 65. Ending mandatory retirement allows workers to decide when to retire based on lifestyle, circumstance and priorities."

The Ontario Human Rights Code will protect people aged 65 and over from age discrimination for most employment purposes. The legislation also amends a variety of other statutes that have provisions connected to mandatory retirement.

ENDING MANDATORY RETIREMENT:
WHAT IT MEANS TO YOU

Ending mandatory retirement affects Ontarians in a variety of ways.

Protection Against Age Discrimination:

• The Ontario Human Rights Code is amended to prohibit mandatory retirement, protecting employees aged 65 or more from being forced to retire, except in those cases where it could be justified on "bona fide occupational requirement" grounds determined under the code.

Transition Period:

• A one-year transition period from the date of Royal Assent will allow workplaces time to adjust to the elimination of mandatory retirement. Some employers may need to reconfigure their employment policies and programs.

Collective Agreements:

• Collective agreements will no longer be permitted to include provisions requiring mandatory retirement, except in those cases where mandatory retirement is allowed under the Human Rights Code as a "bona fide occupational requirement".

• Unions and employers can still negotiate voluntary retirement incentives (i.e. early retirement packages).

• Mandatory retirement provisions in existing collective agreements will no longer be enforceable once the proposed legislation comes into effect.

Pensions:

• Ending mandatory retirement will not have an impact on pension benefits already earned.

• Employees can continue membership in pension plans and accrue benefits past age 65 subject to service or contribution caps.

Canada Pension Plan:

• The legislation does not affect Ontarians' eligibility to receive Canada Pension Plan (CPP) at age 65.

• CPP, Old Age Security and Guaranteed Income Supplement are administered by the federal government. Any changes in eligibility criteria would be a matter for the federal government.

• Information about these programs can be obtained directly from the federal government by calling Social Development Canada. By telephone: English: 1-800-277-9914; French: 1-800-277-9915; 1-800-255-4786 (if you use a TYY machine) all are toll-free.

Benefits & Insurance Plans:

• Currently, under the Employment Standards Act, 2000, employers are prohibited from discriminating on the basis of age in providing benefits to employees aged 18 to 64. This provision will remain in place.

• Nothing in the legislation prevents employers from providing benefits to employees aged 65 or more.

• Individuals aged 65 and more continue to be eligible for government benefits such as the Ontario Drug Benefit Plan.

Employment Termination After Age 65:

• An employee dismissed at age 65 or more for a reason unrelated to age will have the same entitlement as a younger employee to notice of termination or pay-in-lieu, unless the employee is forced to retire under a mandatory retirement policy that could be justified on “bona fide occupational requirement" grounds.

Bona Fide Occupational Requirement:

• A "bona fide occupational requirement" is an employment requirement or qualification that is necessary because of the nature of the employment. These will continue to be permitted under the Human Rights Code.

Workplace Insurance:

• Entitlements under the Workplace Safety and Insurance Act, 1997, will not change.

• Injured workers aged 63 or more at the time of injury will continue to be able to receive loss of earning benefits for up to two years.

Disponible en français

http://www.labour.gov.on.ca/french/index.html

For further information: Public inquiries may be made by calling:

• 1-800-531-5551; Media Contacts: Susan McConnell, Minister's Office,

• (416) 326-7710; Belinda Sutton, Ministry of Labour, (416) 326-7405

Bill 211 (ending MR)