Age discrimination - no compliance window

United Kingdom

There has been some discussion in recent weeks about the possibility of the Government providing occupational pension schemes with a "compliance window" in which to comply with the age discrimination requirements. This would have allowed schemes to introduce amendments for a period after the 1 December 2006 implementation date with no requirement to level up any discriminatory benefits in respect of the period between 1 December and the effective date of the change.

DWP have now confirmed that there will not be a compliance window as "such a provision would, in effect, be allowing unjustifiable discriminatory practice to continue for a period of time after which, due to our European obligations, we are required to prevent it".

This means that schemes need to make any necessary age discrimination amendments prior to 1 December 2006 or deal with the implications of levelling up benefits in respect of amendments made after that date.