As the public sector workforce ages, the candidate pool for new hires and competitive promotions will also age - including an increasing share of individuals over 55 who, by virtue of age alone, may qualify for a public pension. The first part of this presentation will review recent decisions by federal courts that reflect a struggle to apply Hazen Paper Co. v. Biggins, a Supreme Court case which held the sole fact an employee is pension eligible is not enough to establish discriminatory animus so long as this factor is not used as a “proxy” by the employer for age discrimination. Clarity in what can/ cannot be considered is needed for cities who will inevitably confront a hiring situation where there is notice and perhaps even consideration of a candidate’s retirement eligibility but no evidence the candidate’s age itself was viewed as a negative characteristic - the discriminatory intent required by Hazen Paper to support an age claim. The second part of this presentation will focus on cutting-edge efforts to reform state and municipal public pension funds, including an overview of how those efforts are faring in both state and federal courts. Special emphasis would be placed upon the Cincinnati deal and the current crises in Illinois and Kentucky.
