Age discrimination and group
risk benefits
This presentation is directed at business professionals. It should not be
distributed to, or relied upon, by private customers.
Protection Review Seminar July 2007
Kareena Hooker, TOWERS PERRIN HR Services
Sue Sneddon, AEGON Scottish Equitable
The HR Directors’ dilemma
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Why?
• The ‘Age Regulations’
– 1 October 2006
– 1 December 2006
• Unlawful for employers to discriminate on grounds of age
– Direct v indirect
• Can’t use age to force retirement before 65
• Discrimination extends to all terms of employment
including benefits offered as part of the contract of
employment e.g.
–
–
–
–
Pensions
Death benefits
Occupational sick pay
Critical illness cover
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Key points
• Employers use group risk insurance to
insure some/all of their employee benefit
promises
• Age mix will influence risk and may
increase insurance cost
• Employers can’t use cost alone to
objectively justify not providing benefits
• Passing on costs to employees brings its
own challenges
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Age Discrimination – fact or
fiction?
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Challenges and opportunities
Providers
• Understand employer’s needs
and issues
• Balance underwriting needs
with selection risk
• Identify cost neutral options
• Communicate what’s available
• Minimise business disruption
• Product innovation to address
new employer needs
• New players to fill market gaps
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Challenges and opportunities
Providers
• Understand employer’s needs
and issues
• Balance underwriting needs
with selection risk
• Identify cost neutral options
• Communicate what’s available
• Minimise business disruption
• Product innovation to address
new employer needs
• New players to fill market gaps
Advisers
• Demonstrate value to clients
• Help clients review employee
benefits packages and cover
• Work with legal advisers to
help minimise age
discrimination exposure
• Challenge providers to offer
suitable cover
• Helps open dialogue with
prospective clients
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Overview
• Ability not age should be key criteria in
assessing suitability for work
• Government needs to encourage employees
to work longer
• Encouraging good employment practices
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Important information
• This information is based on our understanding of the legislation
which is subject to change.
• Scottish Equitable plc, Registered Office: Edinburgh Park,
Edinburgh EH12 9SE. Registered in Scotland (No. 144517).
Authorised and regulated by the Financial Services Authority.
Member of the AEGON Group. www.aegonse.co.uk
• Towers, Perrin, Forster & Crosby, Inc. registered in England and
Wales under BR 001790
Incorporated with limited liability in Philadelphia in the
Commonwealth of Pennsylvania, USA., under number 359481
Registered address: 71 High Holborn, London WC1V 6TP
Authorised and regulated by the Financial Services Authority.
www.towersperrin.com
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