121.6 Retirement plans

The offer of an early retirement opportunity, by itself, does not constitute age discrimination. For example, an offer of an early retirement opportunity, without evidence that workers were pressured to accept it, does not constitute age discrimination. Vick v. Marshfield Door Sys. (LIRC, 01/31/07).

Generally, an employer may offer eligible employees an incentive to retire without creating a prima facie case of age discrimination, provided that the incentive plan does not irrevocably alter the status quo for employees who reject the option. In this case, the risk to employees rejecting the incentive plan was that their jobs might be eliminated because of economic pressures. This is not sufficient to suggest constructive discharge or age discrimination. Thompson v. A.O. Smith Corp., (Ct. App., Dist I, unpublished opinion, 10/19/94).

Interpreting the Act as it existed in 1976, LIRC holds that Walker Mfg. v. Industrial Comm'n, 27 Wis. 2d 669 (1964) compels the conclusion that the Act allowed forced retirement of employees if there is a retirement policy or system which provides for payment of substantial benefits which are not in jeopardy. Kozlowski v. Doehler-Jarvis Div. (LIRC, 06/29/81). [Ed. Note - Subsequent amendments have effectively reversed this holding; see, sec. 111.33(2)(b), Stats.]