RETIREMENT POLICY HR27
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1 RETIREMENT POLICY HR27 This policy applies to: All employees Date of JNC Approval January 2014 Date of Board Approval: January 2014 Review Date: January 2017
2 1. Introduction 1.1. The NHS LA has no default contractual retirement age and will not dismiss any employee on the grounds of retirement This policy sets out the arrangements for employees who wish to leave their employment to retire and details of the support available for employees preparing for retirement Employees are encouraged to indicate their intentions in relation to retirement as early as possible. This will help the NHS LA with its succession planning and give colleagues time to consider their possible options. 2. Scope 2.1. This policy is to be read in conjunction with the NHS Pension Regulations* and does not alter in any way the provisions of those regulations or override any statutory retirement provision This policy does not cover the procedure for ill health retirement in detail. More information can be found in the Managing Sickness and Promoting Attendance policy and procedure and in the National Terms and Conditions of service No part of this policy represents financial advice and it is the responsibility of the individual to take independent legal and financial advice as appropriate for them. 3. Equality Impact Assessment 3.1. As part of its development, this policy and its impact on equality have been reviewed in consultation with trade union and other employee representatives in line with the NHS LA s Equal Opportunities Policy and the Public Sector Equality Duty. The purpose of the assessment is to minimise and if possible remove any disproportionate impact on employees and service users in relation to the protected characteristics: race, sex, disability, age, sexual orientation, religious or other belief, marriage and civil partnership, gender reassignment and pregnancy and maternity. No detriment was identified. 4. Procedure for retirement 4.1. If you wish to retire at any age, you should resign in writing in a letter addressed to your manager. As a minimum, you need to give the period of notice in your contract of employment, which is usually four weeks. However, you are encouraged to give as much notice as possible. It is possible to write your letter of resignation giving a longer period of notice than the contractual minimum. 1
3 4.2. The line manager should meet with the employee to discuss their decision to retire and to confirm the detailed arrangements for their retirement. *Members of staff should note that there are two NHS pension schemes in operation; the 1995 NHS Pension Scheme and the 2008 NHS Pension Scheme The line manager must notify the Human Resources department of the member of staff s decision to ensure that all the necessary paperwork is completed accurately and on time If you wish to begin to draw your pension from the day after your retirement you are advised to give a minimum of four months notice to allow the necessary arrangements to be made by NHS Pensions. 5. Flexible retirement options 5.1. There are a range of options available to staff to enable a greater work life balance with regards to forthcoming retirement. These options offer staff an alternative to retiring and can help support the transition from being employed to retiring The member of staff should discuss options of flexible retirement with their line manager in the first instance and liaise with the Pensions department for the effect on pension contributions and payments. Contact details can be found on the HR section of the intranet The NHS LA strongly recommends that staff seek advice from an independent financial advisor prior to any request to amend their hours is submitted. There are three flexible retirement options available: Option 1: Reduced working hours ( wind down ) With the agreement of the NHS LA, the member of staff can reduce their contractual hours as they near their retirement age. For example, hours can be reduced by one day each year up to the date of retirement. For example: 62 years 5 days per week 63 years 4 days 64 years 3 days 65 years retire. Option 2: Reduced Responsibilities ( step down ) This option allows the member of staff to step down into a lower banded position with less responsibility than their current position. Staff will be able to make use of 2
4 their skills and experience in a less demanding position and continue to contribute towards their pension. The member of staff will need to discuss this option with their line manager in the first instance, to consider whether there is a suitable vacancy within the department to enable a voluntary downgrade. If a vacancy does not exist at a lower band within their department, the member of staff will need to apply for suitable internal vacancies, if they wish to pursue this option and in line with business needs. Option 3: Retire and Return programme It is possible for a member of staff to retire, collect their pension and return to work. This must have been agreed with the line manager and approved by the Recruitment Oversight Committee (ROC) before the member of staff s retirement date and the ROC will consider this in line with business needs. After a necessary break in service (at least 24 hours between last day of service and re-engagement) the member of staff will be able to return for a maximum of 16 hours per week during the first calendar month. The member of staff may eventually return to work full-time or on flexible hours. The member of staff is required to sign on again for employment with the HR department at least 24 hours later. A new contract of employment will be issued (any pay protection arrangements will not continue). 6. Requesting flexible retirement 6.1. An employee wishing to take advantage of any of the flexible retirement options detailed in section 13 above, should notify their line manager in writing of their request at the earliest feasible opportunity The line manager should meet with the employee to discuss the request within 15 working days of the request being received or within a mutually agreed timescale. The line manager should submit the request to the ROC for approval. Following the meeting, the line manager will be informed of the decision by the ROC secretariat. Staff who wish to retire and return will be asked to submit via their line manager a business case to the Recruitment Oversight Committee (ROC). Acceptable levels of performance during the previous year and business needs will be a deciding factor in whether the request is approved by the ROC If the employee is aggrieved with the ROC decision they may appeal the decision in writing to the ROC setting out the reasons for appeal within 15 days of the notification of the decision. 3
5 7. Ill health retirement 7.1. Retirement on the grounds of ill-health will be managed in line with the NHS LA Managing Sickness and Absence policy and procedure. A member of staff may retire before the usual retirement age on grounds of ill health as long as they have paid at least two years full pension contributions and meet the criteria set by the NHS Pensions Agency. 8. Redundancy/retirement 8.1. Members of staff whose posts are to be made redundant and who meet the conditions set out in the National Terms and Conditions of Service handbook (paragraphs ), may choose to retire early without a reduction in the value of their pensions benefits as an alternative to receiving the full redundancy lump sum. In the event of a redundancy/retirement, the provisions of the National Terms and Conditions should be adhered to along with HR24 Job Security and Change Management Policy and procedure. 9. NHS Pension Scheme 9.1. Pension estimates are available from NHS Pensions; contact details are available on their website, You will need either your National Insurance number or your pensions SD number, both of which are on your payslip. 10. Associated policies HR22 Flexible Working HR01 Equal Opportunities HR28 Job Security and Change Management Policy HR16 Recruitment and Selection HR18 Managing Sickness and promoting attendance 4
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