For more than 60 years, older Baltimore County employees have doled out more for their pension benefits than their younger colleagues.

Tuesday, attorneys in federal court said enough is enough.

"Baltimore County's plan would be perfectly lawful if it were voluntary," said Christopher Lage, an attorney with the U.S. Equal Employment Opportunity Commission. "But this isn't a benefit in which employees can make an educated decision as to whether they want this or not. It's a payroll deduction."

Lage argued before U.S. District Judge Benson Legg for summary judgment in the commission's age discrimination suit against Baltimore County. The suit was filed in September 2007 on behalf of two former county employees and names the county and six labor organizations as defendants.

If forced to pay back wages, the suit could cost the county $19 million, according to court records.

Before the lawsuit, employees' pension contributions were calculated based on how long they might work for the county before they turn 60, the minimum age before an employee is eligible for full retirement benefits. Younger county employees were required to contribute about 4 percent to their pension systems and older employees contributed 6 percent or more.

Assistant County Attorney James Nolan, also asking for summary judgment, said the system is designed to give all employees the same benefits package when they retire, no matter how many years they serve.

"It has nothing to do with the stigmatizing or stereotyping that are the hallmarks of age discrimination," Nolan said.

Since the lawsuit was filed, Nolan said the county's pension system was restructured so that all employees pay a fixed contribution rate of 6 percent.

Legg, chief judge in Baltimore, said he plans to file a written order. If he denies summary judgment for both parties, the suit will go to trial.

He pointed to a Supreme Court ruling that prohibits employers from requiring women to make higher pension contributions than men, even though they statistically live longer.

"Female employees are more expensive than male employees in terms of retirement benefits," Legg said. "The Supreme Court said, 'that's too bad.'"

Lage argued that county employees are also eligible for full retirement benefits after 30 years of service, which removes age from the equation. Even so, younger employees still contribute less.

He said the fact the county matches contribution rates does little to mitigate the effects of the alleged discrimination.

"It still doesn't change the fact that older persons are paying 7 percent and the younger person is paying 3 or 4 percent or some other lower number," Lage said.

By Jaime Malarkey
Examiner Staff Writer 12/17/08
jmalarkey@baltimoreexaminer.com