Law Commons^™

Early Retirement Incentive Plans And The Age Discrimination In Employment Act, Workplace Flexibility 2010, Georgetown University Law Center

Memos and Fact Sheets

Early retirement incentive plans (ERIP) “seek to give incentives to older employees to retire before conventional retirement age. The purpose of these programs is to cut back on salaries and benefits to make way for younger workers.” While some ERIPs might constitute a prohibited act under the Age Discrimination in Employment Act (ADEA), the statute provides an affirmative defense for employers who can prove that the plan is voluntary and “consistent with the purposes” of the Act.

Some commentators have suggested that one way to encourage employers to establish bona fide phased retirement programs within their qualified pension plans is …

Phased Retirement And The Age Discrimination In Employment Act: Legal Standards And Risks, Workplace Flexibility 2010, Georgetown University Law Center

Memos and Fact Sheets

Under current law there is no definition of “phased retirement.” However, employers currently devise a variety of ways in which to implement such programs -- by either allowing critical employees to reduce their schedules rather than retire or by allowing retired employees to return as independent contractors. In either case, employers who implement either formal or informal phased retirement programs must make sure that such programs comply with the Age Discrimination in Employment Act (ADEA).