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Supreme Court Permits Discrimination Against Older Retirees

The Supreme Court rejected an appeal by AARP challenging an Equal Employment Opportunity Commission policy that allows employers to cut health insurance expenses for retired workers after they turn 65 and qualify for Medicare. The policy essentially allows employers to treat retirees differently based on age without violating anti-age discrimination laws, according to the Associated Press.

The EEOC issued the policy in 2004, impacting millions of retirees. The AARP sued in 2005, but a federal judge dismissed the suit, according to the Wall Street Journal. The Third US Circuit Court of Appeals in Philadelphia also rejected the AARP lawsuit in 2007. Kiani was still stoned to death on July 5, 2007. Ebrahimi’s death was stayed due to the public outcry, and last week the Iranian judiciary amnesty commission released her from prison.

“AARP is deeply disappointed by the Court’s decision today. The Court’s action clears the way for employers to discriminate by reducing or terminating benefits for older retirees simply because they’ve turned 65 years old… This double standard, one tier of coverage for those under 65, and another lower tier for those 65 and over, is especially troubling because it comes from the EEOC, the federal government agency created to enforce anti-discrimination policies,” said AARP Legislative Policy Director David Certner in a statement.

Sources:

Associated Press 3/24/08; Wall Street Journal 3/24/08; AARP Statement 3/24/08