Speculation abounds that the delay has been caused by the sheer volume of responses received. Expectation has continued to mount as to whether there is a national consensus of opinion on the matter and how the Government is going to respond if there is not.
While we have yet to see what interested parties who engaged in the consultation had to say, let alone the Government's response, some clear messages appear to be emerging.
Across the board, there appears to be significant concern that the Government is phasing out the default retirement age far too quickly, giving both employers and employees too little time to prepare for what is an unprecedented change. The interim provisions effectively mean that employers only have until 1 April this year to issue notification of retirement to employees who are about to reach 65 years of age.
There appears to be significant support for a code of practice or formal guidance to be provided on how to manage without a default retirement age and to hold discussions with employees without being at risk of complaints of age discrimination.
A key part of the consultation exercise was to garner opinion about the possible impact upon insured benefits and employee share schemes. If insured benefits aren't available for employees over 70, for example, do employers have to self-insure to avoid being at risk of claims of discrimination? It is to be hoped that common sense will prevail and an exemption will be created for insured benefits.
Recent case law suggests that it will be easier for employers to objectively justify their own company retirement age than was expected, on the basis of the need for succession planning and to provide opportunities for progression for younger employees. This is to be welcomed. While the social policy aims behind the abolition of the default retirement age cannot be ignored, its removal will create an unprecedented challenge for employers and the results of the consultation exercise are awaited with great interest.
Wendy Trehy is a partner at law firm Davies Arnold Cooper