Changes needed to aid phased retirement programmes

Speaking before the ERISA Advisory Council Working Group on Phased Retirement, which is examining the need for an improved system of phased retirement opportunities, Pierce Noble, a worldwide partner at Mercer, claimed phased retirement programmes were important to employers, employees and the US economy.

"Clearly, phased retirement programmes can benefit businesses as well as older workers, but to take hold, many rules, regulations and uncertainties must be addressed," he said.

"A number of changes in laws and regulations could result in more widespread implementation and utilisation of these programmes.

"Changes would be needed in the structure of Social Security and Medicare and to provisions of the Pension Protection Act, the Age Discrimination in Employment Act and certain provisions of ERISA."

The ageing of the US population has led to shortages of skilled workers. Phased retirement programmes are seen as a way to plug that gap by 95.8% of the large and medium-sized employers which took part in a recent informal Mercer survey.

The ERISA Advisory Council Working Group will draft recommendations for the ERISA Advisory Council to make to the Secretary of Labor.