Court: EU Countries Can Set Retirement Age
Posted on: Wednesday, 17 October 2007, 15:00 CDT
European Union countries can set a mandatory retirement age, the union's top court said in a ruling that drew both praise and concern from observers.
Observers note the ruling could help reduce unemployment in Europe but strain pension systems, The International Herald Tribune reported Wednesday.
The European Court of Justice in Luxembourg said that while age-based discrimination is illegal, a mandatory retirement at age 65 could be justified to promote social policies. The court stressed a mandatory retirement must be accompanied by adequate pension plans for the retirees.
It does not appear unreasonable for the authorities of an EU member to consider a mandatory retirement measure as appropriate and necessary in order to achieve a legitimate aim in the context of national employment policy, the 13-judge panel ruled.
The European Commission, the EU executive arm, said it was reviewing the court's decision. Some EU employment officials expressed concern that the ruling could send mixed signals to policymakers, when the EU is fighting age discrimination in the workplace and encouraging older people to work more years to finance their retirement.
Source: United Press International
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