The answer to your question is a good deal more complicated than you might think. From the facts you state, I understand the age at which an employee at your company can take retirement under the applicable pension plan is age 62, and that the employee would reach that age on October 1, 2012. I understand the question to be "If the employee notifies the company and pension plan that he intends to retire effective October 1, 2012, and begin receiving benefits at that time, can the employer fire him?"
If that's indeed the question, the answer is technically "yes." However..........if the employer's decision is motivated by an intent to deprive the employee of retirement benefits, the termination might violate Sec. 501 of the Employee Retirement Income Security Act (ERISA). That provision prohibits an employer from discriminating against an employee in order to prohibit him/her from receiving retirement benefits in some cases. We must remember however, that unless the employee has a contract of employment, or is a member of a bargaining unit covered by a labor agreement, he or she is usually an "at-will employee" who can be discharged with or without notice and with or without cause.
Generally, then, an employer may terminate an "at-will" employee at any time and without any reason at all. Therefore, the fact an employee has given the company notice that he/she intends to retire effective October 1 does not prevent the company from terminating him/her between now and October 1. Only if the employee is terminated because the company wants to avoid paying accrued retirement benefits would the termination be unlawful in the context you describe.
Answered on Apr 09th, 2012 at 2:10 PM