Age discrimination? Death in service

[hellsbells99]

Hi.
I am asking this on behalf of a relative.
They are early 60s and have been issued with updated T&Cs (but have realised this is also in their old T&Cs). The death in service benefit stops at the age of 60. Is this allowed? I realise age discrimination is not allowed under the equality act but there seems to be some exceptions. Should the death in service benefit at least be applicable until state pension age?
Obviously they hope it isn’t needed!
Thanks

Is this because at 60 they get benefits from the pension scheme instead?

Is the death in service age the same for both men and women?

If it is then it may well be fine.

If men have a different age then it likely will not be lawful as it would be direct sex discrimination.

It may be an insurance clause, depending on how the employer funds it.

I think this will be the insurer’s issue, not the employer. It will be standard, I’m sure.

its very very hard, especially if you are not a large employer, to find a death in service provider who will cover older staff.

Thanks for your replies.
its a very large employer. I would not think that you can offer different T&Cs based on age before retirement age

I don’t think it’s good OP.

It would be best for the employee to question it with their employer.

Yes they are going to question it and speak to their union.

I deal with these types of benefits at work, and have queried this point in the past and been told there is an exemption under age discrimination laws for death in service.

BUT you are right to query it as we managed to get cover extended to age 65, and if the insurer will allow this then the employer should provide cover, albeit will likely depend on the wording in the employment contract.

Equality Act does allow some benefits to stop at state retirement age:

https://www.legislation.gov.uk/ukpga/2010/15/schedule/9 - para 14.

It's possible in your relative's case that the company's pension scheme kicks in at 60 which is when DIS benefits end. However, they will still get some death benefits - e.g. widow/er's pension or ROF.

First stop is HR and whoever advises on employee benefits.

As above, it’s not discrimination. It is actually one of the specific exceptions to Equality Act 2010, applying to group risk benefits like death in service.

Is the death in service benefit not aligned to the company Pension scheme? so if you can claim that at 60, that's when the DIS ends?

Thanks for all your replies

@AlphaApple thanks for your link. Reading it, I think that means that you cannot discriminate until either 65 or state pension age whichever is the greater - and nowadays state pension age is 67.

That is correct.

The only other possibility I can think of is that your relative's employer may be able to argue that what they are doing is a proportionate means of achieving a legitimate aim. But, on the information given, it does sound like this is unlawful age discrimination.

These schemes tend to be underwritten by an insurance policy, and with premiums increasing some employers are lowering the ages that are covered to manage the premiums .
As it’s a benefit offered at the discretion of the employer ,not a right ,not sure that anything can be done .

@prh47bridge thanks for your reply.
@Teacupover5 but it is still age discrimination whether it’s a discretionary benefit or not and therefore I would assume illegal until state pension age as stated above

Just read up on my company’s scheme and it is until 75th birthday which would seem logical

This is wrong.

Whilst this benefit is at the employer's discretion, they cannot use that discretion to choose who should get it based on age (or, indeed, any other protected characteristic) unless they can show that this is a proportionate means of achieving a legitimate aim - unlikely for a death in service benefit.

There is an exemption for insurance-backed benefits. As you say, this particular benefit may well be insurance-backed. Employers are allowed to restrict such benefits to those below state pension age. They cannot set a lower cut off.

An employer faced with increasing premiums has three legal choices:

• pay the premiums
• stop the benefit for everyone
• restrict the age covered by the insurance policy but continue to provide the benefit for staff up to state pension age (effectively, acting as their own insurers for older staff)

They cannot do is impose a cut off that is lower than the state pension age. Any employer that has done so is guilty of unlawful age discrimination.

@prh47bridge thank you so much!

Age 60 is unlawful discrimination (as the exemption is for age 65 or SPA, whichever is greater).

It is possible to justify it if it is a legitimate means of achieving a proportionate aim, but “cost” is generally not a proportionate aim and there is no reason that a large employer (or any employer!) couldn’t find cover in the market after age 60.

I’m surprised the company hasn’t realised this already.

@SlipperyLizard thanks very much