Incentives for Older Workers Act

Incentives for Older Workers Act - Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (IRC) to prohibit a reduction in benefits for an employee under a defined benefit pension plan who has begun a phased retirement and was employed on a substantially full-time basis during the previous 12-month period before phased retirement.

Defines "phased retirement" as the period when an employee is employed on substantially less than a full-time basis or with substantially reduced responsibilities after reaching age 50 or completing 30 years of creditable service under the plan.

Amends the Social Security Act to raise from 70 to 72 the age up to which inidividuals are allowed to earn delayed retirement credits for purposes of the calculation of increased old-age insurance benefit payments.

Revises federal old-age, survivors, and disability insurance benefits requirements to eliminate the 50% reduction in such benefits due to an individual who claims benefits before reaching 66 years old and who continues to work. (Retains the 33 1/3% offset.)

Directs the Secretary of Labor to award a grant to establish a National Resource Center on Aging and the Workforce to act as a national information clearinghouse on workforce issues, challenges, and solutions for older workers.

Amends the Workforce Investment Act of 1998 (WIA) to revise the composition of state and local workforce investment boards to include representatives of older individuals. Sets aside 5% of WIA funds allocated to local areas for certain adult employment and training activities for activities for older workers.

Amends the IRC to expand eligibility for the Work Opportunity Tax Credit to qualified older workers (age 55 or older whose income does not exceed 125% of the poverty line).

Allows certain defined benefit pension plans to define normal retirement age as the earlier of the attainment of: (1) a specified allowed age; or (2) at least 30 years of service.