Shearman & Sterling has introduced new powers to allow partners to stay on beyond the normal retirement age of 65, a change it is believed was made for the benefit of heavyweight German managing partner Georg Thoma.

Under the new terms, the US firm's policy committee will have the power to allow certain partners to retain their status beyond the normal retirement age.

It is understood that no partners have yet applied to the policy committee but Thoma, who has also been the firm's global co-managing partner since 2004, is thought to be in line to use the provision when he reaches the retirement age in a few years' time.

One partner at the firm told Legal Week: "The intention is not for partners to routinely stay on. It is intended for exceptional cases like Georg, who are very driven. Otherwise you will still retire at 65. I do not think there will be many partners who will want to – there is a generous pension plan that kicks in at the age of 60."

Partners at the New Yorkbased firm agreed to change the partnership deed late last year when they agreed to take out a rule in the deed that entitled lawyers to a significant six-figure sum if they left after spending 10 years in the partnership.

The provision had been designed to counteract the fact that partners would lose out on their pension if they left early to go into other careers, such as academia, but it was removed because of the number of partners leaving for rival firms.