Cabinet Office announces introduction of no retirement age policy

Cabinet Office announces introduction of no retirement age policy

A Defence Policy and Business news article
1 Oct 08

The Cabinet Office has today, Wednesday 1 October 2008, announced plans to remove the mandatory retirement age across the Civil Service.

A number of Government departments have already introduced a no mandatory retirement age policy. In July of this year, Permanent Secretaries agreed to work together to introduce across the remaining Civil Service a no mandatory retirement age policy for staff below the Senior Civil Service by March 2010. Separate work is being undertaken by the Cabinet Office to review the potential for extending this change to the Senior Civil Service (SCS).

This policy has been agreed with the Council of Civil Service Unions. The Ministry of Defence will now develop implementation plans for the introduction of a no mandatory retirement age policy by March 2010. Consultation with stakeholders across the Department and Trades Unions will begin in the near future.

The Employment Equality (Age) regulations came into force on 1 October 2006 making it unlawful to discriminate in employment on the grounds of age unless it can be objectively justified. Since 2006 a number of departments, employing approximately 50 per cent of Civil Servants, have already introduced a no mandatory retirement age policy – these include Department for Work and Pensions, Her Majesty's Revenue and Customs, Department for Environment, Food and Rural Affairs and the Foreign and Commonwealth Office. In July, Permanent Secretaries agreed to work together to introduce a no mandatory retirement age policy for staff below the SCS in the remaining departments.

Today's announcement coincides with National Older Person's Day. A spokesperson from the MOD's Director General Civilian Personnel Pensions team explained what today's announcement means to staff who may be planning to retire:

"I am proud that the Civil Service values all colleagues, regardless of age, and recognises that we must build on the skills and experience of an increasingly diverse workforce so that we can continue to improve the delivery of public services for everyone in society."
Cabinet Secretary Sir Gus O'Donnell

"There is a crucial difference between retirement age and pension age. The introduction of a no mandatory retirement age policy will not affect the age at which you can take your full pension benefits but it will give you greater choice as to when you choose to retire. Although you can now apply to carry on working beyond 65 – and many do – this change will remove this requirement and allow individuals to carry on working until they notify the Department that they wish to leave. Recent pension scheme reforms – such as partial retirement – also increase the choices and flexibilities for those in the latter stages of their careers.

"Although the majority of us are not required to perform physically demanding tasks as part of our work, there are nonetheless a number of professions and occupations which require certain levels of physical fitness. Age discrimination legislation recognises this and allows employers to use a specific and mandatory retirement age where its use can be objectively justified by reference to the demands of the work. This is one of the areas that all employers – including the Civil Service – need to consider when reviewing their retirement age policy. The MOD will be looking at this in developing its plans."

Cabinet Secretary Sir Gus O'Donnell added:

"Older People's Day recognises the important contribution that older workers make in the work place. Like any successful organisation, we need people who have knowledge and experience in key areas, as well as those with fresh ideas to challenge traditional methods. I am proud that the Civil Service values all colleagues, regardless of age, and recognises that we must build on the skills and experience of an increasingly diverse workforce so that we can continue to improve the delivery of public services for everyone in society.

"The new commitment by all departments to a no mandatory retirement age policy across the Civil Service by 2010, for those below the Senior Civil Service, is an important change to our workforce policy. It is a practical demonstration of our commitment to providing greater flexibility for our people."

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