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  Kentucky Retirement Systems v. EEOC. (U.S. 2008)
Ford & Harrison LLP - July 07, 2008 The U.S. Supreme Court recently held that Kentucky’s disability retirement program, which imputes years of service to employees who become disabled before becoming eligible for a regular pension, but does not do so for employees who become disabled after becoming pension eligible, does not violate the Age Discrimination in Employment Act (ADEA). See Kentucky Retirement Systems v. EEOC (June 19, 2008). In its five to four decision, the Court rejected the argument of the Equal Employment Opportunity Commission (EEOC) that such a plan automatically discriminates because of age. The Court found that Kentucky’s plan distinguishes among employees based on pension status, not age. In such cases, a person challenging the plan must present evidence that the different treatment was "actually motivated" by age, not pension status, which the EEOC failed to do.  Supreme Court Charts New Course in Pension Plan Case Interpreting ADEA.Littler Mendelson, P.C. - June 24, 2008 In Kentucky Retirement Income Systems v. Equal Employment Opportunity Commission, No. 06-1037 (June 19, 2008), the United States Supreme Court interpreted the Age Discrimination in Employment Act (ADEA) to permit Kentucky to increase disabled public safety workers' pensions to the level they would have attained at normal retirement age, even though that meant workers who became disabled after reaching retirement age would not receive any pension increase. In a 5-4 decision, the Court rejected the position of the EEOC that the pension design discriminated on account of age unless the state could show an equal-cost justification for the difference in benefits received by two employees with equal pay and service but different ages. Supreme Court Rules Kentucky Disability Retirement Plan Does Not Violate ADEA.Jackson Lewis LLP - June 23, 2008 In one of two age discrimination decisions handed down the same day, the Supreme Court has ruled in a 5-to-4 decision that using age as a potential factor in determining disability retirement benefits does not automatically constitute disparate treatment age discrimination in violation of the Age Discrimination in Employment Act (“ADEA”). Supreme Court Finds No Discrimination In Controversial State Retirement System Plan.Fisher & Phillips, LLP - June 20, 2008 In a 5-4 decision, the Supreme Court held that the Commonwealth of Kentucky's disability plan, which was not made available to persons already eligible for normal retirement benefits by virtue of their years of service (or age, plus years of service), was not discriminatory on its face, and did not violate the Age Discrimination in Employment Act (ADEA). The Court emphasized that it was dealing with the "quite special case" of different treatment based on pension status where pension status itself turns on age, noting that the ADEA permits an employer to condition pension eligibility upon age. The Court adopted the rule that, where an employer adopts a pension plan that includes age as a factor, and then treats employees differently based on pension status, the employee must come forward with evidence that the differential treatment was "actually motivated" by age, not pension status.
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