Senate Votes 94-1 for Bill to Bar Age Bias in Worker Benefit Plans

The Senate voted overwhelmingly Monday to extend additional rights to millions of older workers, passing a compromise bill to bar age discrimination in employee benefit plans.

The bill was passed, 94 to 1--with Sen. James A. McClure (R-Ida.) the only no vote--after Sens. Howard M. Metzenbaum (D-Ohio) and Orrin G. Hatch (R-Utah) announced a technical compromise intended to allay GOP fears that the measure would threaten voluntary early retirement plans and unfairly burden employers.

Hatch had voiced concern that folding employee benefits into the coverage of the Age Discrimination in Employment Act of 1967 would cause businesses to “respond to this change by eliminating early retirement incentive programs--programs that many older workers find very attractive.”

The bill puts the Senate on record as saying it intended the 1967 law to prohibit arbitrary discrimination against older employees in the administration of benefit programs--unless separate treatment of workers on the basis of age could be justified.

In addition, the compromise gave in to a Republican demand to exempt federal workers from the legislation.

The bill overturns a Supreme Court ruling that June Betts, an Ohio public employee who suffers from Alzheimer’s disease, was not entitled to disability retirement benefits because she was over 60 and only deserved her standard age-and-service pension.

The 7-2 decision by the court last year said age discrimination laws covered hiring and firing, wages and salaries, other fringe benefits and terms and conditions of employment but were silent on employee benefit plans.

“This one Supreme Court ruling opened the door wide for potential discrimination in older workers’ health, disability, life insurance and severance benefits,” Sen. John Heinz (R-Pa.) said.

Heinz said that, if the Supreme Court decision had been left uncorrected by Congress, it could have led to “premature exits from office and assembly lines by some of America’s most valued employees.”

The bill, known as the Older Workers Benefits Protection Act, still must be considered by the House. It would amend the 1967 Age Discrimination in Employment Act in two major areas:

--It makes clear that discrimination on the basis of age in virtually all forms of employee benefits is illegal.

--It ensures that older workers are not coerced or manipulated into waiving their rights to seek legal relief.

Metzenbaum said he regretted some parts of the compromise but called it “our only real chance . . . this year” for a law that would help millions of workers.

“This agreement may be a little like a hippopotamus,” Hatch added. “Right away, some will say that it is big and ugly.”