Law firm Torys LLP says that the Ontario government’s plan to scrap mandatory retirement could have far-reaching implications.

In a bulletin, Torys points out that companies will have to assess how their existing employment contracts, benefit plans and other policies are affected by the proposal. It suggests that firms will likely face increased benefit costs. Currently, most long-term disability benefits cease at the mandatory retirement age of 65. And, some firms offer life insurance that ceases at a specific age.

The firm says that the move may also require changes to pension plans. Plans may no longer be able to require Ontario-based employees to start receiving a pension on the normal retirement age, it says.

And, it says that other problems may arise as a result of the change. Employers may face termination costs, human rights claims and wrongful dismissal claims for firing employees over age 65.