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Age Concern says mandatory retirement at 65 may lead to ‘social catastrophe’

Age Concern executive director Claudette Fleming

A recommendation by the SAGE Commission that Government implement the mandatory retirement policy for its workers has been met with dismay and a warning from advocacy group Age Concern.Accepting the recommendation would retard the progress of human rights in Bermuda and could also sow the seeds of a “long term social catastrophe”, it said.And Government may well pay a political price should it maintain the policy, added the organisation’s director Claudette Fleming.Topping the list of six recommendations in the Spending and Government Efficiency Commission’s interim report released last week is a recommendation that mandatory policy of retirement at age 65 should be implemented “immediately”.“Such a policy would move Bermuda further behind Human Rights practices in the global community that legally protect work participation for persons 65 years and older as a core principle toward independence and financial security and thus would certainly not be a ‘promise kept’,” Ms Fleming said.“The statement also seems a contradiction in light of other statements stating Government pensions are woefully underfunded and unsustainable in the long-term. What then will be the fate of retiring civil servants after years of faithful service?“The powers that be therefore should be duly cautioned not to turn the present spending crisis into a long-term social catastrophe because of a failure to consider the eventual unintended consequences of its action.”Ms Fleming added: ‘Public policy is not the same as running private enterprise. When the going gets tough, older adults simply can’t just pack up and go home, and they won’t. But, they may walk straight to the polls and vote their way out of obscurity if that’s what it takes. A thought well worth keeping in mind.”Last week, Bermuda Industrial Union president Chris Furbert called for the SAGE Commission to justify its recommendation.“What they should have recommended to the Government is if people are going to stay on until 70 then certain conditions should not happen,” Mr Furbert said.“People are living longer and because they are living longer they want to stay working longer. And you don’t know what commitments people have, and whilst I do believe that people should one day retire, I believe that people should be able to stay on the job until 70.“Should they stay past 70? I think at 70 you should be able to go home. But I certainly believe that the retirement age should be extended on a year-on-year basis to age 70.“They should have some documentation that supports why they are saying their recommendation should be upheld by the Government.” We asked SAGE Commission chairman Brian Duperreault what findings justified the recommendation.“The fact is Government is spending more than it makes. Costs have to be reduced,” Mr Duperreault responded via e-mail. “Adhering to its own policy of retirement at age 65 is one of several good ways to reduce costs. This is also the fairest and least disruptive to the individual employee. He or she receives a pension, and there is no redundancy cost to Government. Adhering to the retirement policy also makes room for others coming along in the system.”Both political parties support prohibiting age discrimination in employment. But the workplace was not included in the age discrimination prohibitions of the latest round of amendments to the Human Rights Act.Government has said that it is researching the impact of the change on pensions and retirement.But it went ahead and relaxed the mandatory retirement policy for public school teachers who can now work until 70 with the consent of the Head of the Civil Service — in line with the policy for civil servants.And in a cost-cutting deal with all public workers, Government is offering an incentive programme for early retirement targeted at the close to 500 pubic sector workers between 60 and 64.Mr Duperreault was off the Island and had not responded by press time last night when asked whether the SAGE Commission took into account the public policy and human rights trends affecting older workers.Last night, Government confirmed that it was still “fully committed” to banning age discrimination in the workplace, and that its research and policy considerations were ongoing.