Friday, June 20, 2008

Supreme Court doesn't find age bias in Kentucky retirement system for disabled workers

The Associated Press reports:

The Supreme Court ruled Thursday that Kentucky's retirement system does not
discriminate against older workers.

The court, in a 5-4 ruling, says the retirement system reasonably takes age and length of service into account when structuring benefits for disabled workers who are eligible for retirement.

Workers who become disabled once they are eligible to retire receive their regular retirement pensions, but not disability payments.

An employee complained that the state's plan is set up so two employees who become disabled, each with the same total time of service but of different ages, could
receive dramatically different benefits.

A federal appeals court had ruled that the plan was discriminatory because it deprives employees older than 55 of an employment benefit because of their age. The high court reversed that ruling.

The benefit at issue in the case is offered to all employees working in hazardous positions on the same nondiscriminatory terms, said Justice Stephen Breyer, writing for the majority. Congress has approved programs that calculate permanent disability benefits using a formula that expressly takes account of age, Breyer added.

Jefferson County Sheriff's Deputy Charles Lickteig, who has since retired, became disabled at age 61 after working for the sheriff's office for 18 years. He applied for state disability benefits, which were denied because he was eligible for normal retirement benefits. In his complaint with the U.S. Equal Employment Opportunity Commission, Lickteig contended the state's retirement system discriminated against older workers who became disabled.