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06-126
December 11, 2006

ENDING MANDATORY RETIREMENT: WHAT IT MEANS

Ending mandatory retirement could affect Ontarians in a variety of ways. Here are some of the key elements:

Protection Against Age Discrimination:

The Ontario Human Rights Code has been amended to prohibit mandatory retirement, protecting employees aged 65 or more from being forced to retire, except in those cases where the retirement age can be justified as a “bona fide occupational requirement”.
Workplace policies and practices that require individuals to retire at age 65 can no longer be applied. Provisions in contracts of employment or collective agreements that provide for mandatory retirement at age 65 will no longer be enforceable.
An employee could still be required to retire at a particular age if the employer could demonstrate that the age in question is a bona fide occupational requirement.

Collective Agreements:

Collective agreements will no longer be permitted to include provisions requiring mandatory retirement, except in those cases where mandatory retirement would be allowed under the Human Rights Code as a “bona fide occupational requirement”.
Mandatory retirement provisions in existing collective agreements will no longer be enforceable.
Unions and employers will still be able to negotiate voluntary retirement incentives (i.e. early retirement packages) provided that they comply with the Code.

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. Eligibility criteria are determined by the federal government.
Information about these programs can be obtained directly from the federal government by calling Human Resources and 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, subject to certain exceptions. This provision will remain in place.
Employers are permitted but not required to extend workplace benefits to employees over the age of 65.
Individuals aged 65 and more continue to be eligible for government benefits such as the Ontario Drug Benefit Program.

Employment Termination After Age 65:

An employee dismissed at age 65 or more has 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 can 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 would 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 would continue to be able to receive loss of earning benefits for up to two years.

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Public Inquiries:

Ontarians can go to www.ontario.ca/mandatoryretirement for more information on the provisions of the act and how they apply. A toll-free telephone line is also available for public inquiries at 1-800-531-5551.

Media Contacts:

Belinda Sutton
Ministry of Labour
416-326-7405

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