Work Benefits 8 January at 12:02PM in Employment, jobseeking & training 10 replies 612 views

kittyk50

Hi there, I would be grateful if someone could give me their opinions please:  I have been with the same employer for 34 years.  I have recently reached the age of 66.  My employer has told me that I will no longer be entitled to long term sick pay or life insurance (4 x annual pay).  These are benefits that are given to staff as standard.  They say it is because the insurance they use only covers those up to retirement age.  Can they do this? could it be classed as discrimination on account of age?

Marcon

kittyk50 said:

Hi there, I would be grateful if someone could give me their opinions please:  I have been with the same employer for 34 years.  I have recently reached the age of 66.  My employer has told me that I will no longer be entitled to long term sick pay or life insurance (4 x annual pay).  These are benefits that are given to staff as standard.  They say it is because the insurance they use only covers those up to retirement age.  Can they do this? could it be classed as discrimination on account of age?

They can. Age discrimination legislation contains an exemption in relation to what are known as 'group risk benefits' such as life cover and policies covering long term sickness.  An employer can decide not to offer these to employees who are aged at least 65, or State Pension Age if later than age 65. 

It is quite common to cease these benefits for exactly the reason given by your employer. Increasing the upper age limit on an insurance policy gets increasingly expensive, or even impossible, for obvious reasons - i.e. there is much more likely to be a claim as employees get older.

It is likely that you'll find a provision in your terms of employment which says that cover can be ceased or restricted at any age for a particular individual if benefits in respect of a that individual cannot be insured for the full amount.

Undervalued

kittyk50 said:

Hi there, I would be grateful if someone could give me their opinions please:  I have been with the same employer for 34 years.  I have recently reached the age of 66.  My employer has told me that I will no longer be entitled to long term sick pay or life insurance (4 x annual pay).  These are benefits that are given to staff as standard.  They say it is because the insurance they use only covers those up to retirement age.  Can they do this? could it be classed as discrimination on account of age?

As Marcon say, yes they can.

Given that this type of insurance based benefit would clearly cost more the older you get, if it is available at all. It could be argued that were they to give it to you you would actually be getting a more expensive benefit than a younger employee!

Savvy_Sue

The life insurance will be with an outside provider, so no room for negotiation there, as explained above, but you might be able to get their agreement that they'll continue with the 'normal' arrangements for long term sick pay. These things are usually on a discretionary basis anyway, so hedged around with 'normally', but I'd certainly want to know what future arrangements for company sick pay were going to be! 

Have you had a good record for sickness until now? clearly if you've maxed it out in the last few years they're less likely to continue it than if you've had the off day off here and there ...

Marcon

Savvy_Sue said:

The life insurance will be with an outside provider, so no room for negotiation there, as explained above, but you might be able to get their agreement that they'll continue with the 'normal' arrangements for long term sick pay. These things are usually on a discretionary basis anyway, so hedged around with 'normally', but I'd certainly want to know what future arrangements for company sick pay were going to be! 

From what OP has said, their employer's long term sick pay is clearly covered by an insurance policy too. I'd expect OP to have whatever sickness pay is potentially available up to the point where the sick pay policy would have kicked in had they been covered by it. Not offering that on the same terms as other employees (whether on a discretionary basis or otherwise) certainly would be age discrimination, since non-insured sick pay doesn't come under the 'group risk' exemption.

Savvy_Sue

Marcon said:

Savvy_Sue said:

The life insurance will be with an outside provider, so no room for negotiation there, as explained above, but you might be able to get their agreement that they'll continue with the 'normal' arrangements for long term sick pay. These things are usually on a discretionary basis anyway, so hedged around with 'normally', but I'd certainly want to know what future arrangements for company sick pay were going to be! 

From what OP has said, their employer's long term sick pay is clearly covered by an insurance policy too. I'd expect OP to have whatever sickness pay is potentially available up to the point where the sick pay policy would have kicked in had they been covered by it. Not offering that on the same terms as other employees (whether on a discretionary basis or otherwise) certainly would be age discrimination, since non-insured sick pay doesn't come under the 'group risk' exemption.

You've put it perfectly. I've never had such cover in place but that makes perfect sense: it seems unlikely that insurance would be called on for the odd day or two, or short periods.

kittyk50

Hi there thank you all very much for your replies and I apologise for my slow response!  I didnt really think that they would do something they are not supposed to, I work for solicitors !    The sickness insurance kicks in after 13 weeks when employees receive 75% of full time pay.  To be honest, I think that they would cover me if I was off sick, I have only had one period of sickness covered by insurance during my whole employment.  It is the life insurance cover that reallly stings, my son is disabled and it was always nice to know that he would receive that money if anything happened to me while I was employed, and now that safety net has gone.  Does anyone know where I can get some good life insurance that at my age will not cost a fortune ??  On the positive side, I can look to do other things now without thinking of the benefits I am giving up!  thank you all again.

Marcon

kittyk50 said:

Hi there thank you all very much for your replies and I apologise for my slow response!  I didnt really think that they would do something they are not supposed to, I work for solicitors !    The sickness insurance kicks in after 13 weeks when employees receive 75% of full time pay.  To be honest, I think that they would cover me if I was off sick, I have only had one period of sickness covered by insurance during my whole employment.  It is the life insurance cover that reallly stings, my son is disabled and it was always nice to know that he would receive that money if anything happened to me while I was employed, and now that safety net has gone.  Does anyone know where I can get some good life insurance that at my age will not cost a fortune ??  On the positive side, I can look to do other things now without thinking of the benefits I am giving up!  thank you all again.

Not quite sure how you categorise 'good' life insurance. Have a look at https://www.comparethemarket.com/life-insurance/content/senior-life-insurance/ partly to get quotes, and partly to read their very helpful information section which comes right at the beginning and hopefully will enable you to judge what will meet your criteria to be classed as 'good'.

kittyk50

Thank you Marcon, I will have a good read.  I am  not sure what I mean by good to be honest, but that link may make it clearer for me.  

Marcon

kittyk50 said:

Thank you Marcon, I will have a good read.  I am  not sure what I mean by good to be honest, but that link may make it clearer for me.  

I suspect by 'good' you might have 'suitable' in mind - in which case the info on the link I've given should help to clarify.

Savvy_Sue

kittyk50 said:

I didnt really think that they would do something they are not supposed to, I work for solicitors !    

:rotfl: they can be among the worst! "No-one will challenge us, we're solicitors!" can very easily become "We can do what we like because ..."

I'd definitely ask them to confirm that you will continue to receive full company sick pay for the first 13 weeks of any sickness. 

Another thought: do you have a pension with them? What death in service benefits does that offer? Is your son named as the beneficiary of that (or a suitable trustee if he cannot manage his own affairs)?