Age discrimination found in Maryland pension plan

Age discrimination found in Maryland pension plan

A pension plan that required higher contribution rates for older employees was found to be unlawful by a federal district court in Maryland.

In EEOC v. Baltimore County, the county maintained a defined benefit pension plan that required participation by all employees younger than 59. Employees were required to contribute to the plan at different rates, based on their age when they joined. The older an employee was when joining the plan, the higher his or her contribution rate.

The county argued that the different contribution rates based on age were justified by non-age-related financial considerations. But the court disagreed, noting that an early retirement option separated an employees age from the number of years until retirement. The court ruled that the plan violates the Age Discrimination in Employment Act.

(Thanks to Shawe/Rosenthal for providing this information.)