Benefits in doubt for B.C. employees who work past 65

'The legislation ... allows an employer to be selective.' - BCGEU

Vancouver (3 May 2007) - When mandatory retirement is abolished in British Columbia on Jan. 1, 2008, the change will not affect the financial health of pension plans, says the British Columbia Government and Service Employees' Union (BCGEU/NUPGE).

Neither does the union expect the legislation, given first reading on April 25, to have any significant impact on its 60,000 members across the province. However, some questions may arise over benefits for workers who opt to stay on the job, BCGEU says in an advisory posted on its website.

"Members who wish to continue to work past age 65 should be aware that the legislation ... allows an employer to be selective in terms of the other benefits it provides," it notes.

"Specifically, there is no assurance that one will be entitled to coverage of health plans and income replacement plans such as a short term disability plan or a long term disability plan. The union will continue to monitor the impact of the change and will address any issues that come up."

BCGEU says the legislation (Bill 31) allows for programs such as WCB to continue with their current practice of ending or converting benefits at age 65. Restrictions on others (such as correctional employees) working past the age of 60 will also continue. These are known as 'bona fide occupational requirements.'

"We will monitor the situation and provide information to members as needed," says BCGEU president George Heyman.

"The government does appear to have cherry picked the recommendation on mandatory retirement made by the Premier's Council on Aging and Seniors, yet they have ignored other major concerns, especially the need to improve home support," Heyman notes.

Pensions at 65 still legal

When passed, the legislation will amend the mandatory retirement provisions of the B.C. Human Rights Code and also the Public Service Act, which now authorizes mandatory retirement for public sector employees.

Pension plans will still be able to differentiate on the basis of age. For example, pension plans may continue to set 65 as the age when a person becomes eligible to collect a pension.

For government employees wishing to work past 65, the legislation requires an employee to forward a written request to the appropriate deputy minister. An order-in-council is then to be issued authorizing the person to continue to work.

"Other employers will likely have different approaches and the union will deal with these as they arise," the union notes.

PSPP and MPP members not affected

"The change will not affect members in the Public Service Pension Plan (PSPP), the Municipal Pension Plan (MPP) or the College Pension Plan (CPP)," BCGEU says.

"Those plans currently allow for the accrual of service up to age 69 and that is likely to be raised to age 71 in the future. The federal government has indicated they will make this change," the union says.

"The elimination of mandatory retirement will also have no impact on community health workers who are now eligible to join the MPP, or social services workers who will be eligible to join the MPP in 2010."

More information:
• Bill 31 - Mandatory Retirement Elimination (B.C.)