A retirement plan based on age in which an employer offers $10,000 as a base early retirement incentive for 55-year-olds, $8,000 for 56-year-olds, and so on, and nothing to persons age 60 or older. Does such a plan amount to illegal age discrimination?
My Response: No, its not in violation to any Law because its a offer and not a requirement
your right
It's called the "Golden Handshake" here and I took it! :)
Sra
To determine whether this retirement plan constitutes illegal age discrimination, we need to consider the relevant laws and regulations. In the United States, age discrimination is generally prohibited under the Age Discrimination in Employment Act (ADEA) which is enforced by the Equal Employment Opportunity Commission (EEOC).
Under the ADEA, it is generally unlawful for an employer to discriminate against employees or job applicants who are age 40 or older on the basis of their age. However, there are exceptions that allow employers to offer different benefits or reductions in retiree health benefits based on age.
In this case, the retirement plan you described appears to offer different early retirement incentives based on age, with higher amounts for younger employees and no incentive for those aged 60 or older. As long as this plan is voluntary and offers an incentive rather than imposing a requirement, it is less likely to be considered illegal age discrimination.
It is important to consult with an employment lawyer or seek further guidance from the EEOC to ensure compliance with all applicable laws and regulations in your specific jurisdiction.