January 26, 2009 (PLANSPONSOR.com) - The U.S.
District Court for the District of Maryland has ruled that
Baltimore County did not violate the Age Discrimination in
Employment Act (ADEA) by requiring older workers to
contribute to their pensions at a higher rate than younger
In its opinion the court concluded that Baltimore
County was motivated by a permissible principle - the
time value of money - rather than the age of new hires.
The court noted that Baltimore County's former system
was based not on age, but on the number of years an
employee has until reaching retirement age.
Prior to the lawsuit, employees' pension
contributions were calculated based on how long they
would work for the county before they turn 60. Younger
county employees were required to contribute about 4% to
their pension systems and older employees 6% or more,
according to a Baltimore Examiner news report.
The Equal Employment Opportunity Commission filed
the lawsuit in September 2007 (see
EEOC Accuses Baltimore County of Age
), asking for a change in the pension system and that the
two former correctional officers it represented, and
others, be reimbursed for money it says was wrongfully
withheld from their paychecks.
The Examiner says the county has since changed its
pension system so all employees pay a flat 6%
The District Court opinion is