September 2004 Ask AARP
By: Source: AARP.org Date Posted: 2006-08-30 10:08:18.758118-04:00
Recruiting, hiring, training and managing older workers
"Overqualified"
Can you explain the issue concerning use of the word "overqualified" during an interview with an applicant to fill a vacant position?
Burbank, CA
Answer:
Tack on another addition " overqualified " to the list of words you generally shouldn’t use in dealing with current or potential employees. "Overqualified," especially when referring to older applicants or employees, may be considered a code word for too old; using the word could lead to an age discrimination charge.
Thoughts about Rehiring Retirees
We are considering rehiring retirees. Can you share some thoughts about rehiring retirees, what to consider and how to do it?
Dallas, TX
Answer:
It is a good idea to consider rehiring your own retirees or maybe even those of your competitor for part-time jobs. Benefits to you include experienced workers who know your organization and how the system works; loyal workers; and greater staffing flexibility.
You might set up a job bank — database of eligible retirees and others — to provide a steady supply of qualified workers. This would require developing a system for recruiting and hiring people, assessing skills and matching them to available jobs, and evaluating job performance. Another possibility would be to use an outside contractor to set up and maintain such a job bank.
A word of caution: If you encourage early retirement and then rehire workers to do essentially the same job at lower wage and benefit levels, you may violate the Age Discrimination in Employment Act (ADEA) and there are also Employee Retirement Income Security Act (ERISA) issues to consider.
Benefits and older workers
Finding Unclaimed Pension Benefits
During a company sponsored pre-retirement planning session an older participant was not sure if she qualifies for a pension from a previous employer no longer in business. Do you have any ideas on how I can advise her and others on where to go for this information?
Marshall, TX
Answer:
In 1997, the Department of Labor and the Pension Benefit Guaranty Corporation (PBGC) started the Pension Search Directory to help locate persons owed pension money from terminated defined pension plans. Since then the PBGC has found over 18,000 persons owed more than $61 million in benefits. Many of the names in the Pension Search directory are workers with pensions whose former employers terminated pension plans and distributed the benefits. Others are workers or retirees missing from underfunded pension plans that were taken over by PBGC because the plans did not have enough money to pay benefits. There are no guarantees the employee’s name will be found in the Pension Search directory, however, once PBGC is contacted the identification process generally takes 4-6 weeks to complete
Advise your employee and others with the same concern go to the following site to see if they qualify to receive unclaimed pension benefits: www.pbgc.gov/search
Health Care Coverage for Workers Age 65 and Older
I have a business with about 27 employees. Who is responsible for providing health care coverage for employees age 65 and older - employers or Medicare?
Baltimore, MD
Answer:
Employers are required to offer the same group coverage to employees and their spouses age 65 and older that they offer to younger employees. If you have 20 or more employees, Medicare is the secondary payor of health benefits for this group of employees. For more information contact the benefits administrator at your health insurance plan. Or, you can call the Medicare Coordination of Benefits Call Center at 1-800-999-1118.
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