U.S. Supreme Court Decides State Pension Formula Does Not Violate ADEA

Kentucky's pension system provides retirement benefits for employees who reach a certain age. It also provides benefits for certain employees who become disabled in the line of duty, or after a certain amount of service. The formula for retirement benefits adds "imputed" years of service to those employees who become disabled before retirement. The EEOC challenged the formula claiming that the pension provided lower "imputed" years for disabled employees who had longer service and, therefore, was a proxy for age discrimination.

Confusing, right? Well, the Supreme Court held the pension formula did not violate the Age Discrimination in Employment Act. And the decision was 5-4, with Justices Scalia, Kennedy, Ginsburg, and Alito dissenting.

The case is Kentucky Retirement System v. EEOC and the opinion is here.