§ Mr. LawsTo ask the Secretary of State for Work and Pensions what action he is taking to prevent public sector workers from facing compulsory retirement at age 60; and if he will make a statement. [90218]
§ Mr. McCartneyIn the recent Pensions Green Paper, "Simplicity, Security and Choice: Working and Saving for Retirement" (Cm 5677), we have proposed that the rules of public sector pension schemes should be 665W changed over the next few years to make an unreduced pension payable from a normal pension age of 65 rather than 60 in respect of all new members.
Under age legislation to be implemented by 2006, compulsory retirement ages are likely to be unlawful unless employers can show that they are objectively justified. The Department for Trade and Industry will be consulting further, later in the year, on the proposals for age legislation.
In the meantime, we will build on the work already done through promotion of the Code of Practice for Age Diversity in Employment and the Age Positive campaign. The Government will continue to encourage all employers, including those in the public sector, to review their retirement policies to allow people who want to work beyond normal retirement age, and should they wish, beyond state pension age, to do so.
In the Department, staff below the Senior Civil Service are able to choose to remain in employment beyond the age of 60 for any period up to the age of 65. The Department's flexible approach to age retirement allows staff to continue to work in their current grade and, subject to business need, to seek promotion to a higher grade or volunteer to down grade. Subject to business need, staff may also choose to work full-time or part-time. Senior civil servants can apply to work beyond age 60 where there is a business need.