Pressure to Retire Leads to Age Bias Suit

The EEOC says a company fired two employees because of age after repeatedly pressuring them to retire.

Blinded Veterans Association (BVA), a Washington, D.C.-based non-profit that provides services to blind veterans, is facing an Age Discrimination in Employment Act (ADEA) lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC).

The EEOC charges that BVA officials, including a member of the BVA board of directors, repeatedly asked Lazaro Martinez, who was then age 76 and had worked for BVA for 34 years, when he would retire from his position as assistant national field service director at the association’s Mather, California, location. Martinez replied that he was not considering retirement. 

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About two months later, BVA announced that it was “reclassifying” certain jobs, including Martinez’s position, and that he needed to compete for one of the newly-created national field service officer positions if he wanted to remain employed by BVA. In order to compete for one of the newly created jobs, BVA imposed on Martinez arbitrary and unrealistic requirements. According to the lawsuit, BVA terminated Martinez because of his age and selected a younger candidate for a national field service officer position.

The EEOC also contends that Suzanne Matthews, who was then 70 years of age, had worked for BVA in Washington, D.C. for approximately 15 years when her supervisor repeatedly asked her, “When are you going to retire?” and “When are you moving to Florida?” Despite her good job performance, BVA abruptly terminated Matthews from her position as an administrative assistant to the national director of field service. After being notified of her termination, Matthews applied for a newly created BVA position for which she was qualified. The lawsuit charges that BVA fired Matthews because of her age and selected an employee for the newly created position who was more than 20 years younger than Matthews and who had only three years of experience with BVA.

“Employers head in the wrong direction if they make employment decisions based on age or try to pressure employees to retire,” said Washington Field Office Acting Director Mindy Weinstein in an EEOC statement. 

EEOC Philadelphia District Office Regional Attorney Debra M. Lawrence added, “Targeting older workers under the pretext of a reorganization doesn’t fool anyone—it’s clearly age discrimination, and clearly unlawful.”

In the lawsuit, the EEOC is seeking an injunction prohibiting BVA from engaging in future age discrimination, lost wages and liquidated damages, as well as other affirmative relief.

The case, EEOC v. Blinded Veterans Association (Civil Action No. 1:14-cv-02102), was filed in the U.S. District Court for the District of Columbia.

Prudential Retirement Creates Gibraltar Ventures

The new Gibraltar Ventures organization will explore, develop and invest in new strategies to advance retirement and financial security, according to Prudential.

Prudential Retirement, a business unit of Prudential Financial, has launched Gibraltar Ventures as a separate organization focused on developing new investment ideas and business strategies.

Christine Marcks, president of Prudential Retirement, says Gibraltar Ventures “will build on Prudential Retirement’s significant successes over the past several years and complement our existing efforts to help more people prepare for their financial futures with confidence.”

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Asked to elaborate on the work Gibraltar will do, Marcks shared a written statement with PLANSPONSOR:

“Prudential Retirement has a successful track record of growing our core portfolio of businesses and developing new sources of revenue ahead of market demand, as we did with IncomeFlex and Pension Risk Transfer strategies. Gibraltar Ventures will build on that foundation to explore unique solutions that will help overcome behavioral and financial obstacles to long term savings and retirement security for our clients. It’s likely that Gibraltar Ventures will also explore ideas beyond the current scope of our three core businesses. What’s different about Gibraltar Ventures is that we are creating a stand-alone organization under the direction of a senior leader who is responsible for both incubating and investing in potentially disruptive ideas. We expect Gibraltar Ventures to both challenge and complement our current innovation efforts.”

George Castineiras, head of Prudential Retirement’s defined benefit, defined contribution and nonqualified executive benefits business, has been tapped to lead Gibraltar Ventures. James McInnes, a member of the Total Retirement Solutions leadership team since 2009, will be promoted to head of Total Retirement Solutions, filing Castineiras’ previous role. Both Castineiras and McInnes will begin their new roles on January 1, 2015, and report directly to Marcks.

“I am pleased to launch Gibraltar Ventures under George’s leadership,” Marcks added. “George’s experience in this industry and passion for innovation make him a natural choice to launch this effort.”

The strategy for Total Retirement Solutions business will remain unchanged, according to Prudential.

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