Age discrimination and group risk benefits

1
Age discrimination and group risk benefits
This presentation is directed at business
professionals. It should not be distributed to,
or relied upon, by private customers.

• Protection Review Seminar July 2007
• Kareena Hooker, TOWERS PERRIN HR Services
• Sue Sneddon, AEGON Scottish Equitable

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The HR Directors dilemma
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Why?

• The Age Regulations
• 1 October 2006
• 1 December 2006
• Unlawful for employers to discriminate on grounds
  of age
• Direct v indirect
• Cant use age to force retirement before 65
• Discrimination extends to all terms of employment
  including benefits offered as part of the
  contract of employment e.g.
• Pensions
• Death benefits
• Occupational sick pay
• Critical illness cover

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Key points

• Employers use group risk insurance to insure
  some/all of their employee benefit promises
• Age mix will influence risk and may increase
  insurance cost
• Employers cant use cost alone to objectively
  justify not providing benefits
• Passing on costs to employees brings its own
  challenges

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Age Discrimination fact or fiction?
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Challenges and opportunities

• Providers
• Understand employers needs and issues
• Balance underwriting needs with selection risk
• Identify cost neutral options
• Communicate whats available
• Minimise business disruption
• Product innovation to address new employer needs
• New players to fill market gaps

7
Challenges and opportunities

• Providers
• Understand employers needs and issues
• Balance underwriting needs with selection risk
• Identify cost neutral options
• Communicate whats available
• Minimise business disruption
• Product innovation to address new employer needs
• New players to fill market gaps

• Advisers
• Demonstrate value to clients
• Help clients review employee benefits packages
  and cover
• Work with legal advisers to help minimise age
  discrimination exposure
• Challenge providers to offer suitable cover
• Helps open dialogue with prospective clients

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Overview

• Ability not age should be key criteria in
  assessing suitability for work
• Government needs to encourage employees to work
  longer
• Encouraging good employment practices

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Important information

• This information is based on our understanding of
  the legislation which is subject to change.
• Scottish Equitable plc, Registered Office
  Edinburgh Park, Edinburgh EH12 9SE. Registered in
  Scotland (No. 144517). Authorised and regulated
  by the Financial Services Authority. Member of
  the AEGON Group. www.aegonse.co.uk
• Towers, Perrin, Forster Crosby, Inc. registered
  in England and Wales under BR 001790
• Incorporated with limited liability in
  Philadelphia in the Commonwealth of Pennsylvania,
  USA., under number 359481
• Registered address 71 High Holborn, London WC1V
  6TP
• Authorised and regulated by the Financial
  Services Authority.
• www.towersperrin.com