Government has introduced the necessary changes to five pieces of legislation to make way for the implementation of mandatory retirement rules that come into effect May 26, 2007. Amendments to the Human Rights Code, the Pensions Benefits Act, Public Service Pensions Act, 1991, the Teachers� Pension Act and the Uniformed Services Pensions Act, 1991 will be given second reading in the House of Assembly today.

On May 26, 2006, the Government of Newfoundland and Labrador eliminated mandatory retirement, but the amendment to the code was suspended for a year to allow people and organizations the opportunity to take whatever actions necessary to be in compliance with the code changes.

Employees are now able to make their own choice as to how long they remain in the workforce so long as they are capable of performing their jobs and they are not forced to retire at 65, said the Minister of Justice, the Honourable Tom Osborne.

"Employees will be given the option to choose their own retirement date based upon lifestyle, circumstances, and priorities and will not be required to retire based upon an arbitrary number," said Minister Osborne. "This important change makes sense as it promotes the dignity and sense of self worth of older employees."

Because the Human Rights Code has now eliminated mandatory retirement at age 65, the Department of Government Services is also amending the Pension Benefits Act, 1997 in the House of Assembly. This amendment will allow plan members to continue making contributions and accrue benefits beyond age 65. These amendments will also provide greater flexibility to employers and members through other options which employers can offer.

"The amendment we are bringing through the House of Assembly is especially beneficial to someone who may not have worked enough time with their employer to receive their pension by age 65," said the Honourable Dianne Whalen, Minister of Government Services. "It is important that our Pensions Benefit Act, 1997 reflect the right people have to work beyond the age of 65."

Similarly, the Department of Finance has introduced changes to the Public Service Pensions Act, 1991, the Teachers' Pensions Act and the Uniformed Services Pensions Act, 1991 to eliminate references to mandatory retirement and to permit employees covered by each Act who work beyond normal retirement age to continue to participate in the pension plan.

"These amendments will ensure the public sector pension plans are consistent with changes to mandatory retirement in the Human Rights Code. As a result, more employees will be able to decide when retirement is right for them," said the Honourable Tom Marshall, Minister of Finance. "As well, there will be greater opportunity for the transfer of valuable knowledge and skills between experienced employees and those who are new to the work force. This can only benefit the province as a whole."

Information on mandatory retirement changes was mailed to employers across the province last month. Additional information can be obtained by visiting the Department of Justice Web site at www.justice.gov.nl.ca or by calling 1-709-729-2889.

-30-

2007 05 24                                                    12:35 p.m.