Age discrimination and age-related pension scheme contributions

By Suzanne Burrell

The European Court of Justice (ECJ) has ruled on the validity of age-related contributions in a money purchase pension scheme, confirming they are permissible provided they can be objectively justified.

A recent case considered by the ECJ — HK Danmark v Experion A/S  concerned a pension scheme in Denmark set up for employees, under which employer contributions were provided at the following rates: six per cent for under-35s, eight per cent for 35- to 44-year-olds and 10 per cent for people aged 45-plus.

The ECJ confirmed that the reasons for paying age-related contributions given by the Danish government were legitimate and could amount to the necessary justification…

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