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Obligatory Retirement Age
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Is it legal to establish an obligatory retirement age for a company? May the company set different retirement ages based on a job classification? Under what circumstance could the company make excepti
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Obligatory Retirement Age

posted at 8/3/1999 8:31 AM EDT
Posts: 2
First: 8/3/1999
Last: 8/6/1999
Is it legal to establish an obligatory retirement age for a company? May the company set different retirement ages based on a job classification? Under what circumstance could the company make exceptions to an obligatory retirement age?
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Obligatory Retirement Age

posted at 8/4/1999 1:00 AM EDT
Posts: 2217
First: 6/16/1999
Last: 12/13/2001
Take a look at 29 CFR 1625.9,for a historical perspective to the answer to your question. According to the Regulation, the Department of Labor's interpretation of the original language of the ADEA (as enacted in 1967) permitted involuntary retirement if "(i) contained in a bona fide pension or retirement plan, (ii) required by the terms of the plan and not optional, and (iii) essential to the plan's economic survival or to some other legitimate business purpose-- i.e., the provision was not in the plan as the result of arbitrary discrimination on the basis of age."

However, the ADEA 1978 amendments changed the relevant section (sec. 4(f)(2)), to prohibit the involuntary retirement of protected persons "because of the age of such individual."
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