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Default Retirement Age to be gone next year
Update 73 - Yesterday, the Government began the consultation process on its plan to abolish the Default Retirement Age (DRA) of 65 on 6 April 2011.
From that date, it is expected that employers will no longer have the automatic right to issue notices of retirement to employees who have reached or who are approaching the age of 65.
Under planned transitional arrangements, employers who have already issued notices of retirement to employees before 6 April 2011 will be able to continue to rely on the DRA to retire these employees, as long as the employment terminates before 1 October 2011.
This announcement is described as a “phasing out” of the DRA but perhaps in reality is an abolition of the DRA rather more quickly that businesses might have hoped for.
The measure is one of the steps that the Government is taking to enable and encourage people to work longer, alongside raising the State Pension Age to 66 faster than currently scheduled.
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