- OWBPA: Everything You Need to Know
The Older Workers Benefit Protection Act (OWBPA) is designed to protect the benefits of older workers. 8 min read
The Older Workers Benefit Protection Act (OWBPA) is designed to protect the benefits of older workers. OWBPA is actually an amendment of the Age Discrimination in Employment Act (ADEA). The act was passed into law in 1990 by Congress.
Employers who have older employees may see distinctions based upon age in employee benefit plans within life insurance, retirement, pension, and insurance plans. Sometimes these costs are justified, which is why the OWBPA makes a provision for the higher costs.
Despite these higher costs, the employer cannot pay any less for an older worker's benefits than they do for someone who is younger. The OWBPA prohibits age discrimination when certain working benefits are included. These benefits cover life and health insurance, disability and retirement benefits, and pensions. The benefits must also be equal to all workers regardless of age.
Exceptions to this rule apply if the older worker receives other benefits from the government or the employer that make up the difference in coverage.
T>here are also rules that vary on the type of benefit. These rules are quite complex.
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