Policy No: PP23 Version: 3.1 Name of Policy: Retirement Arrangements Policy Effective From: 19/06/2014 Date Ratified 01/10/2012 Ratified Human Resources Committee Review Date 01/10/2014 Sponsor Deputy Chief Executive Expiry Date 30/09/2015 Withdrawn Date This policy supersedes all previous issues. Retirement Arrangements Policy v3
Version Control Version Release Author/Reviewer Ratified by/authorised by 1.0 July 2006 JCC TPF Board of Directors Date July 2006 July 2006 Sept 2006 Changes (Please identify page no.) 2.0 Aug 2011 Coleen Knox HR Committee 01/08/2011 3.0 23/10/2012 C Knox HR Committee 01/10/2012 3.1 19/06/2014 C Knox Y Ormston 17/06/2014 Flexible working amendments Children and Families Act 2014 Retirement Arrangements Policy v3.1 2
Section Contents Page 1 Introduction... 4 2 Policy scope... 4 3 Aim of policy... 4 4 Duties (Roles and responsibilities)... 4 5 Definitions... 5 6 NHS Pension Scheme Arrangements... 5 6.1 NHS Pension Schemes... 5 6.2 Retirement in accordance with the NHS Pension Scheme... 7 6.3 Voluntary early retirement between ages 50 and 65... 7 6.4 Conditions of early retirement... 8 6.5 Flexible retirement... 9 6.6. Procedure when considering flexible retirement... 12 6.7 Flexible retirement examples... 13 6.8 Retirement considerations... 15 6.9 Information about fixed term contracts... 16 7 Training... 16 8 Equality and diversity... 17 9 Monitoring compliance with the policy... 17 10 Consultation and review... 17 11 Implementation of policy (including raising awareness)... 17 12 References... 17 13 Associated documentation (policies)... 18 Appendices Appendix 1 Application for flexible retirement... 19 Appendix 2 Application for flexible retirement response form... 21 Appendix 3 Procedure for the request to flex retirement arrangements... 22 Retirement Arrangements Policy v3.1 3
Retirement Arrangements Policy 1 Introduction This Trust is committed to workforce development and planning future workforce requirements. As a part of this, managers need to consider the impact retirement will have on the skills and knowledge available within the service. There should be planning in place to ensure that skills and knowledge are shared in a timely manner to minimise the effect of retirement. This policy sets out guidance for Managers and staff in relation to the NHS Pension Scheme and the introduction of the New Pension Scheme. This policy also sets out the various options for staff as they approach retirement and the role of managers in these processes. This includes: Wind Down Step Down (1995 section only) Retiring and returning to work Partial Retirement Draw Down (2008 section only) Employees who work beyond 65 may continue to contribute towards the NHS Pension Scheme providing they have not accrued 45 years pensionable service or are a member of a special class (see paragraph 6.7). 2 Policy scope This policy details retirement arrangements applicable to all members of staff employed by the Trust. It also gives details relevant for members of the NHS Pension Scheme. It does not include retirement on the grounds of ill health. 3 Aim of policy This policy aims to enable staff to balance their work with their home lives when they retire or plan to flex their retirement and ensure that services can continue to be provided to a high quality. 4 Duties (Roles and responsibilities) Trust Board The Trust Board is responsible for ensuring that a robust system and process for staff applying to retire from work or to flex retirement is established in support of the organisation s commitment to be a good employer. The Director with responsibility for Finance and Information The Director is ultimately responsible for ensuring effective systems are in place to support staff in making applications for retirement benefits from the NHS Pensions Agency and providing accurate pensions information to allow staff to make informed decisions. Retirement Arrangements Policy v3.1 4
The Director with responsibility for Human Resources The Director is ultimately responsible for ensuring effective systems are in place to support staff to retire from work or flex retirement and to support managers in planning for future service delivery. Payroll Department The Pensions Officer, along with appropriate Payroll staff, will be responsible for maintaining pension records, administering applications for retirement and providing accurate estimates of retirement benefits to members of the NHS Pension Scheme who make such enquiries. Personnel Department The Personnel Department will be responsible for providing support and advice to managers and staff on the practical operation of this policy. Managers Managers, on behalf of the Trust, will ensure that appropriate consideration is given to employees requesting flexible retirement within the scope of this policy. Managers should also ensure that they comply with equality legislation in the application of this policy, in particular age discrimination legislation and flexible working legislation. In accordance with the Employment Rights Act 1996, you should arrange to talk to your member of staff as soon as possible after receiving their written request. You must provide them with a written decision and also ensure staff are given the right of appeal (where appropriate). Staff All members of staff who wish to draw upon their NHS pension, are responsible for informing the Pension Officer in writing of their intent to retire, completing and returning the relevant application forms in a timely manner to the Payroll Department, who will be able to confirm receipt (see 6.2). Staff who are considering retirement or flexible retirement options should adhere to the processes detailed in this policy. In accordance with the Employment Rights Act 1996, you must make a request for flexible working in writing, and it must contain specific information. 5 Definitions Retirement can be defined as the action or fact of leaving one's job and drawing pension benefits. Prior to 1 st October 2011, the national default retirement age in the UK was age 65 years. There are many other terms used in the policy and so for ease of reference they are explained in the section detailing that matter. 6 NHS Pension Scheme arrangements 6.1 NHS Pension Schemes Retirement Arrangements Policy v3.1 5
Effective from 1 April 2008 there are two pension schemes operating within the NHS, which are detailed below: 1995 Section The 1995 section of the Scheme closed to new members with effect from 1 April 2008. Employees who were an active member of the Scheme on 31 March and 1 April 2008 may remain in this section of the Scheme. There are some circumstances in which a new employee who has previously been employed by the NHS and has a deferred benefit can rejoin the 1995 section of the Scheme after 1 April 2008. These are: Deferred members who return to NHS work will be able to rejoin the 1995 section provided they return within five years of becoming a deferred member. Members who are in the comparable section to the 1995 section, of the NHS Pension Schemes in the Isle of Man, Scotland or Northern Ireland, who are joining the NHS in England and Wales. Members returning to NHS work, who transferred their benefits out of the Scheme when they left before 1 April 2008, are able to rejoin the 1995 section provided they return within 5 years of leaving. Employees would not be eligible to rejoin the 1995 section if they: were aged over 70 on 31 March 2008; have received a refund of contributions from their last period of pensionable employment and these have not been repaid; return after 1 April 2008 and repay a refund; left the Scheme on or after 1 April 2008 and transferred their benefits out of the Scheme; are a Special Class Member and over age 65. had previously taken pension benefits from the 1995 section 2008 Section All new NHS workers from 1 April 2008 will be eligible to join the NHS Pension Scheme 2008 section. The 2008 section of the Scheme is also open to: all NHS workers who had not previously been a member of the NHS Pension Scheme; eligible deferred members who return to the NHS and who opt to join the 2008 section of the Scheme; deferred members returning to the NHS more than 5 years after leaving the 1995 section of the Scheme; previous members of the 1995 section who left after 1 April 2008 and transferred their benefits to another scheme; previous members of the 1995 section who transferred their benefits to another scheme and did not return for 5 years or more. previous members of the 2008 section who have taken pension benefits may rejoin the 2008 section and build up a second pension. Retirement Arrangements Policy v3.1 6
6.2 Retirement in accordance with the NHS Pension Scheme The updated 1995 NHS Pension Scheme allows normal age retirement at age 60. Members can opt for voluntary early retirement from age 50, however, benefits will be reduced to cover the extra cost of receiving a pension for a longer period. The 2008 NHS Pension Scheme allows normal age retirement at age 65. Members can opt for voluntary early retirement from age 55, however, benefits will be reduced to cover the extra cost of receiving a pension for a longer period. Paragraphs 2.1 and 2.2 do not replace the existing arrangements for early retirement on grounds of redundancy or in the interests of the efficiency of the service. Staff who are members of the NHS Pension Scheme will receive retirement benefits, which consist of an annual pension paid for life and a tax free lump sum (no automatic lump sum on the 2008 scheme). The amount received depends on the individual s pensionable pay, how long they have been a member of the scheme and whether they have worked part time. With effect from 1 April 2008, under the updated 1995 Pension Scheme and the 2008 Pension Scheme, the maximum membership age is 75 (65 for special classes) with a membership limit of 45 years. There are people in certain staff groups with Special Class Status i.e. Mental Health Nurses, who were members of the NHS Pension Scheme before 6 March 1995 and who have qualifying service. They can retire with full pension benefits from age 55 although the same conditions with regard to retirement before age 55 still apply. Special Class Status is no longer granted to new entrants to the Scheme on or after 6 March 1995. Re entrants to Special Class type employment retain the status in the Scheme if they do not have a break in pensionable scheme membership of 5 years or more. Special Class does not exist on the 2008 NHS Pension Scheme. Where a member is intending to retire under the provisions of the NHS Pension Scheme either by normal age retirement or voluntary early retirement, it is necessary for the member of staff to provide 4 months notice in writing to the Pension Officer, of their intention to retire in order to ensure that the relevant documentation is processed for calculation of final pension figures and to arrange payment. For further guidance on pension entitlements, and calculation of pension entitlements, please contact the Payroll department ext. 5334 6.3 Voluntary early retirement between ages 50 and 65 Members of the NHS Pension Scheme who take voluntary early retirement, may receive immediate payment of their pension benefits if they are aged 50 or over and less than 60 (updated 1995 section) are aged 55 or over and less than 65 (2008 section) have at least 2 years pensionable service. Retirement Arrangements Policy v3.1 7
Members who have more than one NHS employment, (or who have other non NHS employment in which they are pensionable in the NHS scheme) will normally be required to retire from all these employments. The reduced pension must be at least equal to the guaranteed minimum pension required under Social Security legislation; otherwise early retirement cannot be agreed. Further information may be available from the Pensions Officer within the Payroll department. 6.4 Conditions of early retirement Voluntary early retirement (reduced benefits) This arrangement allows members of the NHS Pension Scheme aged 50 (1995 section) or 55 (2008 section) or over to choose to retire in advance of their normal retirement date with an actuarial reduction in their benefit. The reduced pension must be at least equal to the guaranteed minimum pension. The employee s pension and lump sum are reduced by the Government Actuary. Abatement ceases after age 60 (55 for special classes). The employer s approval is not required although any notice period will need to be agreed in line with the employee s contract of employment. Guidance relating to the scale of reductions is available from the Payroll department. Voluntary early retirement (employer approved in the interest of efficiency of service) Voluntary early retirement with unreduced benefits allows the Trust to agree to meet the additional costs and enables the members pension to be paid without actuarially reduced benefits. This arrangement is not available as an option for employees to choose, but is determined solely by the Trust, as and when organisational reasons dictate. This option will only be approved in very specific circumstances where for example, individuals seek to retire in advance of their normal retirement age and this would clearly lead to an improvement in the overall effectiveness of the service. This option should not be used where an employee s performance/conduct is in question, in such circumstances advice should be sought from the HR Department. Early retirement on grounds of redundancy i) Agenda for Change Section 16 Members of the NHS Pension Scheme who retire early on grounds of redundancy may choose to retire early without reduction in the value of pension benefits as an alternative to receiving the full lump sum benefit if they fulfil the following qualifying conditions: have at least two years continuous service and two years qualifying membership have reached the minimum pension age ii) The decision to authorise early retirement on the grounds of redundancy or in the interests of the efficiency of the service remains a management prerogative, which will occur only in certain very specific circumstances and in all instances, must be supported and agreed by the Trust Board. Retirement Arrangements Policy v3.1 8
iii) This option should not be used, where an employee s conduct is in question. In these circumstances, advice should be sought from the Personnel Department. iv) In the event of a reduction in the workforce being necessary the Trust will attempt as far as practicable to avoid redundancies. In circumstances where this cannot be avoided, redundancy/premature retirement arrangements will apply as detailed in the Trust Redundancy and Redeployment Policy PP4. Early retirement in the interests of the efficiency of the service In exceptional circumstances NHS employers may seek the early retirement of individual members of staff (including clinical medical and dental staff) in the interests of the efficiency of the service, where performance: Although acceptable in the past, has consistently declined over a period of time to an unacceptable level. After appropriate remedial action has been taken, is considered unlikely to improve. In such circumstances, advice should be sought from the Personnel Department as the decision to retire an individual early should be taken only as the last resort when it is clearly in the overall interests of the efficiency of the service to do so. Ill health retirement Members of both sections of the NHS Pension Scheme who become permanently medically unfit to continue working in their substantive post may qualify to retire early on the grounds of ill health. In such circumstances a recommendation from the Occupational Health physician must be received by the Divisional Manager/Head of Service, confirming that the member of staff is medically unfit and unable to return to their post. Further guidance is available in the managing of Sickness Absence Policy (PP 11). There are two tiers of Ill health retirement and the benefits the employee will get will depend on whether or not they are capable of undertaking employment elsewhere. Tier 1 Unable to do current job. Tier 2 Unable to carry out regular employment due to permanent ill health. More information on Ill Health can be obtained from the NHS Pensions website or the Payroll department. It is important to remember that although a recommendation to retire on the grounds of ill health may be agreed between Occupational Health or the individual s Consultant/GP, the Divisional Manager/Head of Service and a member of staff, there is no automatic right for the early payment of a pension; this decision is taken by the Pensions Agency. 6.5 Flexible retirement Retirement Arrangements Policy v3.1 9
The Children and Families Act 2014 introduced the right for all workers with 26 weeks service to request flexible working, regardless of age. With effect from 30 th June 2014, the existing statutory procedure will be abolished, and the following steps will have to be taken when considering flexible retirement requests: The member of staff requests a flexible working arrangement The manager agrees to the request or arranges to discuss it within 28 days of receipt of the request The law requires that all requests, including any appeals, must be considered and decided on within a period of three months from first receipt, unless you agree to extend this period with the member of staff The member of staff is given the right to appeal the decision Within the rules of the NHS Pension Scheme there are a range of alternatives available for staff known as Flexible Retirement. The alternatives listed below must be discussed and approved by the Divisional Manager/Head of Service prior to any flexible arrangement being put into place: To wind down into part time work. To step down (1995 section) into a less demanding, lower paid role in a way that preserves pension entitlement from the higher level post. To draw down (2008 section) into a less demanding, lower paid role or a reduction in hours to enable the employee to partially retire. To retire and start receiving pension but carry on with part time or full time work. To encourage recently retired staff to return to work in ways that will not affect their pension income. Flexible retirement options include: Wind down A member of staff may reduce their hours leading up to retirement, by doing so any membership accrued whilst part time will be based on a pro rata basis. However it is important to note that pensionable pay on retirement for part time staff are calculated on the whole time equivalent. Therefore staff who may wish to defer retirement and continue to work on a part time basis carry on building up pension entitlement. A difference may occur where special allowances are not attached to the part time role (e.g. night shift allowance). Further guidance is available from the Pensions Officer based within the Payroll Department. Approval must be given by the Divisional Manager/Head of Service for an individual to reduce hours in their current grade. Step down (1995 section only) Retirement Arrangements Policy v3.1 10
This relates to a member of staff over the minimum pension age. If their pay is reduced by at least 10%, they can apply for the higher rate of pay to be protected for pension purposes. They must do this within three months of their pay reducing. A second pension based on the reduced pay will start and on retirement both pensions will be added together. This option can be particularly valuable where the member of staff has critical skills and experience to contribute to patient care and where the new role facilitates transfer of this experience to other staff. Members of staff, who wish to consider this option, must seek agreement from their Divisional Manager/Head of Service who will consider the request in line with the Trust s Recruitment and Selection Policy and Equal Opportunities Policy. Draw down (2008 section only) Members of staff can reduce their pensionable pay by at least 10% once they have reached the minimum retirement age of 55 and partially retire taking some of their benefits. A minimum of 20% and a maximum of 80% can be taken of their own pension entitlement and continue to build up future membership. The benefits would be reduced if they are paid before the member s 65th birthday. Pensionable pay must remain reduced for at least a year otherwise they will cease to be eligible for the pension that they have taken. The member can draw down your benefits twice before retiring completely. If the member chooses this option then they will not have to formally retire from their job to receive part of their pension. Again, this option can be particularly valuable where the member of staff has critical skills and experience to contribute to patient care and where the new role facilitates transfer of this experience to other staff. Members of staff, who wish to consider this option, must seek agreement from their Divisional Manager/Head of Service who will consider the request in line with the Trust s Recruitment and Selection Policy and Equal Opportunities Policy. Retiring and returning to work Members of staff may wish to retire and return to the workplace on a full time, part time or temporary basis, pension will be payable provided there is a clear break in service. Staff will need to have a minimum of 2 weeks break in service. The conditions attached to this option are: i) Members of staff aged under 60 cannot earn more through pension and post retirement employment than their salary at retirement. This excludes staff who have taken an actuarially reduced pension. ii) Members of staff who retire on the 1995 section of the pension scheme and return to NHS work will not be eligible to rejoin either section of the pension scheme. iii) Members of staff who retire on the 2008 section of the pension scheme and return to NHS work may rejoin the 2008 section to build up further membership to a maximum of 45 years and qualify for a second pension. Retirement Arrangements Policy v3.1 11
iv) Whatever age members of staff retire, they must not work for more than 16 hours per week in the first month retirement. This calendar month begins on the first day of their retirement. v) There is no automatic right for a member of staff to retire and return to their original post. Consideration will be given to the request by the Divisional Manager/Head of Service in line with the Recruitment & Selection Policy, and Equal Opportunities Policy as outlined in the Procedure on Flexible Retirement. These flexible retirement options may also be taken into account as potential new arrangements when considering requests for the extension of service beyond normal NHS retirement age. Benefits of flexible retirement The benefits of flexible retirement are: creates a richer staff resource full time, part time or available in periods of peak activity, better utilisation and transfer of skills and knowledge from experienced staff, improve morale by allowing staff to take advantage of early retirement options. provides an incentive for key staff to defer planned retirement for a limited period, for example through the winter months. These flexible retirement options may also be considered as potential new arrangements when considering requests for the extension of service beyond 65. 6.6 Procedure when considering flexible retirement The following procedure should be implemented when entering into any arrangement with staff regarding flexible retirement. It is important to remember that each individual case will vary slightly and therefore staff/managers should consult the Personnel Department and/or the Trusts Pensions Officer and/or the NHS Pensions helpline for advice (Telephone no. 0845 421 4000). Further information is provided in section 6.8 and 6.9. Members of staff who may wish to consider flexible retirement must in the first instance advise their departmental manager in writing of their request (see Appendix 1). For NHS Pension Scheme members this will be subject to the completion of the requisite period of service. Following receipt of the request the manager must meet with the member of staff to discuss the options and the basis on which the retirement may or may not be supported e.g., part time working, stepping down or retiring and receiving pension and returning to part time or full time work. The Manager should seek advice from the Personnel Department to ensure that any decisions reached do not discriminate against members of staff on the grounds of age. Further information is provided in section 6.8 and 6.9. Retirement Arrangements Policy v3.1 12
Once a decision has been made and an agreement has been reached by the manager/member of staff, the following process appropriate to the situation should be followed. Wind down The Personnel and the Payroll departments must be notified as soon as possible by the manager. Personnel will issue a variation of contract letter to the member of staff and issue change of hours notification to the Payroll department. Step down (1995 section) When a member of staff requests to step down into a lower grade post, they must notify their Manager in writing (see Appendix 1). The Manager will consider the request and any suitable vacancies that may be available with the member of staff. Once a post has been identified and offer agreed the Manager will advise Personnel in writing of the transfer of the member of staff to a lower grade post including the effective date and duration of the contract. Personnel will advise the Payroll of the change and issue a new contract of employment. The member should write to the Pensions Officer within three months should they wish to apply to protect their pension at the higher rate. Draw down (2008 section) When a member of staff requests to partially retire by drawing down part of their pension benefits by either moving to a lower grade post or by reducing their hours, they must notify their Manager in writing (see Appendix 1). The Manager will consider the request and any suitable vacancies that may be available with the member of staff. Once a post has been identified and offer agreed the Manager will advise Personnel in writing of the transfer of the member of staff to a lower grade post including the effective date and duration of the contract. The member should contact the Pensions Officer to discuss options should the member choose to partially retire. Retiring and returning to work When a member of staff wishes to take early retirement and return to work they must discuss this option with their manager. As there is no automatic right for a member of staff to return to a post, the manager will consider the request in line with the Recruitment and Selection Policy (PP10a) and the Equal Opportunities in Employment Policy (PP14) and seek appropriate advice from the Personnel Department if necessary. If particular pressures are being experienced, or in exceptional circumstances, consideration may be given to the recruitment process. In such cases managers should contact the Personnel Department for advice. Annual risk assessments will continue as normal. 6.7 Flexible retirement examples Wind down A senior staff nurse aged 54 with almost 20 years pensionable service considers retiring at 55. Retirement Arrangements Policy v3.1 13
After discussion/agreement/approval, the manager agrees to this nurse working half weeks of 2 and 3 days alternatively. The individual carries on working part time until aged 61. During this period the individual earns 50% of their previous salary and over the 6 years adds a further 3 years to their eventual pension entitlements. On retiring their pension is calculated on the equivalent full time salary. Wind down A laboratory technician aged 58 has 32 years pensionable service, and doesn t wish to retire altogether. After discussion/agreement/approval, the manager agrees to the individual moving into a part time role working 2/3rds of the hours he had previously worked. He eventually retires aged 64. Working part time he earns 66% of his previous salary, instead of a pension of 40%. On retiring 6 years later his pension is calculated on the full time pay of the job. He will also have added to that a further 4/80ths the equivalent of 4 full years service built up working 66% part time over 6 years. Step down A clinical manager aged 56 has been on the management payscale for 10 years; his overall pensionable service is 24 years. The employee applies and is appointed to a lower banded post which results in an overall drop in pay. As the drop in salary is more than 10% he applies to have his pension benefits accrued at the higher level protected. He then starts a new pension at the lower band and when he comes to retirement the two pensions are calculated individually and then added together. Draw down (2008 section) A clerical officer working full time aged 58 has 30 years pensionable service and doesn t wish to fully retire but wishes to draw on some of her pension benefits. After discussion/agreement/approval, the manager agrees to the individual reducing their hours to 30 per week, as this is an overall drop in pay of more than 10% it allows the employee to draw on part of their pension whilst continuing working. The employee decides to take 40% of their pension entitlement, as they are under normal age retirement (60) then an actual reduction will apply to the benefits paid. The employee continues to pay towards the other 60% of their pension. The employee decides to fully retire at age 61 so they will receive the rest of their pension which is 60% and once a separate calculation has been done to determine benefits the two pensions will be added together. Retiring & returning to work Retirement Arrangements Policy v3.1 14
An Occupational Therapist approaching 60 would like to work part time covering for annual leave. Following discussion/agreement/approval the individual works over the course of a year, 2 days per week. On retirement the individual receives a pension of 30/80ths of their salary. In addition they earn 2/5ths of the previous salary from their flexible part time work. 6.8 Retirement considerations Members of staff who retire have greater protection from age discrimination in the workplace. Eligible members of staff can voluntarily retire at a time of their choosing, and draw any occupational pension they are entitled to in line with the NHS Pension Scheme s rules. The abolition of the default retirement age means that the Trust can no longer require members of staff to retire at the age of 65 years. It is important to manage both service needs and staff expectations. Open discussions between managers and members of staff about future plans can help facilitate the transition from work to retirement. They are also important features of workforce planning and staff development. Discussions should always be conducted sensitively, in an atmosphere of trust, and may take place during the appraisal process. During any discussions with members of staff, managers do not have to follow exactly the same questions irrespective of where people are in their careers. However managers should not ask questions which could be seen as discriminatory, for example asking an older worker directly when they are going to retire. It may be more appropriate to ask all members of staff about their future plans. Managers should also remember that members of staff may express an intention to retire, but later change their mind. Some members of staff will continue to work in their current roles until a point at which they decide they want to retire. They should tender their resignation in writing to the line manager, giving three months notice to enable pension arrangements to be processed. Members of staff can obtain advice about notice periods from the Personnel Department. Members of staff can tender their resignation in writing, giving longer notice periods than required by their employment contract. Sometimes during the notice period, a member of staff may change their mind. Whilst managers are not under any obligation to agree to rescinding the written resignation and the employment relationship continuing, they must give these requests due consideration. Managers may seek advice from the Personnel Department when considering such requests. Members of staff who wish to consider flexible retirement (wind down, step down, draw down or retire and return to work), require a change their working arrangements. Flexible retirement forms part of an integrated approach to helping members of staff achieve work life balance, and improve the quality of working life. However as a Foundation Trust, we operate in a competitive environment where these requests have to be balanced with the needs of the service. Managers are responsible for ensuring decisions relating to changes in working arrangements, such Retirement Arrangements Policy v3.1 15
as flexible retirement, are made in a fair, consistent and transparent manner, taking into consideration the needs of both the service and the member of staff. The service reasons for refusing a request must be from one of those listed below: Burden of additional costs Detrimental effect on ability to meet patient/client demand Inability to reorganise work among existing staff Inability to recruit additional staff Detrimental impact on quality Detrimental impact on performance Insufficiency of work during the periods the employee proposes to work Planned structural changes Members of staff who wish to request a change in their working arrangements may choose to use the provisions in PP18 Flexible Working. However if members of staff are requesting a change in working arrangements linked to flexible retirement, they should complete the application form in Appendix 1 of this policy. Members of staff should submit flexible retirement arrangement requests at least 3 months prior to the proposed effective date. In some situations it may be possible to give longer notice and this may allow more time to plan for changes in working patterns. The Trust will consider flexible retirement arrangement applications that have been submitted with less than 3 months notice, but the reduced timescales may impact on the ability to agree to the requested changes. 6.9 Information about fixed term contracts 7 Training Managers should be aware that asking a member of staff to change from a substantive contract to a fixed term contract as part of an arrangement for flexible retirement, may be considered discrimination on the grounds of age. There are however objectively justifiable reasons in some instances. For example a member of staff may apply for a different fixed term post as part of an arrangement to retire and return. In this case there would be an objectively justifiable reason why they are offered temporary employment which is not related to their age. Managers must also remember that the end of a fixed term contract is technically a dismissal from employment. They should seek advice from the Personnel Department to ensure that both the reason and the procedure for the dismissal are fair according to employment legislation. The Personnel Department are able to offer advice on the non renewal of a fixed term contracts, notice periods, potential redundancy situations, and suitable alternative employment. Appropriate staff within the Personnel and Payroll Departments will be trained on this policy. The contents of the policy will be discussed as part of the pre retirement course available to staff. Retirement Arrangements Policy v3.1 16
No other formal training is required in relation to the policy. Staff are advised to contact the Personnel Department or Pensions Officer for advice in relation to this policy. 8 Equality and diversity The Trust is committed to ensuring that, as far as is reasonably practicable, the way we treat members of staff and patients reflects their individual needs and does not discriminate against individuals or groups on the grounds of any protected characteristic. The aim of this policy is to provide clear guidance for managers and staff in relation to the NHS Pension Scheme, the introduction of the New Pension Scheme, and changes as a result of the abolition of the default retirement age. This policy aims to promote equality of opportunity and eliminate age unlawful discrimination, by enabling staff to approaching retirement to consider different working patterns to help them to balance their work life commitments. It adopts a human rights approach and encourages a positive attitude towards an aging workforce and requests for non traditional working patterns. This policy has been impact assessed. 9 Monitoring compliance with the policy Managers and members of staff can obtain advice and guidance from the Personnel Department, the Payroll Department and Staff Side Representatives to assist them with the application of this policy. The Personnel Department maintain a register of staff who have flexed their retirement, or who continue working past 65 years. This will be reviewed on a quarterly basis. Standard / process / issue Monitoring and audit Method By Committee Frequency Report on older workers. Report Deputy Head of Personnel HRC Annual 10 Consultation and review This policy has been reviewed in consultation with the Payroll Department and the JCC Policy Sub Group. 11 Implementation of policy (including raising awareness) This policy will be circulated by the Trust Secretary as detailed within OP27. 12 References NHS Pension Scheme PP4, PP11, PP10a and b, PP14 NHS Pension Scheme Retirement Flexibilities, NHS Employers Employment Rights Act 1996 Guidance on flexible working for the NHS, NHS Employers, January 2014 Children and Families Act 2014 Retirement Arrangements Policy v3.1 17
Draft code of practice on handling in a reasonable manner requests to work flexibly, ACAS, 2014 13 Associated documentation Training Prospectus for Pre retirement Courses Retirement Arrangements Policy v3.1 18
Appendix 1 Application for flexible retirement This form must be completed by members of staff who wish to request flexible retirement arrangements. Note to employee It will help the Trust to consider your application if you can provide as much information as you can in your request. Please include the reasons for your request and any desired changes to your working pattern. Once you have completed all sections, you should immediately forward it to your line manager (you might want to keep a copy for your own records). Your line manager will then pass the request onto the appropriate managers. You will then be contacted within 2 months to discuss this request. Note to manager This is a formal application under PP23 Retirement Arrangements Policy. You should confirm receipt of this application by returning to the employee a photocopy of the receipt section at the end of this form and then pass on the form to the appropriate service manager and a senior member of the Personnel team). The law requires that all requests, including any appeals, must be considered and decided on within a period of three months from first receipt, unless you agree to extend this period with the member of staff. 1. Personnel Details please print Name. Payroll Number... Department Job Title. Manager.. 2. Reason for application Have you made an application to work flexibly during the last 12 months? Yes / No delete as appropriate If yes, date of application Retirement Arrangements Policy v3.1 19
3. If you have plans to finish work at a particular point in time, please provide details here. 4. Describe any changes to working patterns or duties you would like the Trust to consider 5. Accommodating the new working pattern. I think the effects in 4 above could be dealt with as follows: Confirmation of receipt (to be completed by manager and photocopy returned to employee) Dear.. I confirm that I have received your request for different working arrangements on.. I shall pass on this form to the appropriate service manager and a senior member of the Personnel team. They will then contact you, in accordance with the Retirement Arrangements Policy to discuss your application. You do have the right to be accompanied at that meeting. Signed Date.. Retirement Arrangements Policy v3.1 20
Appendix 2 Application for flexible retirement response form Note to the manager You should write to the employee with the decision within 14 days or as soon as is reasonably practicable following the meeting to discuss the request. Dear.. Payroll number Following receipt of your application and our meeting on. I have considered your application to flex your working arrangements and I am pleased to confirm that I am able to accommodate your application. I am unable to accommodate your original request. However, I am able to offer the alternative arrangements/working pattern, which we have discussed, and as you agreed would be suitable to you, as outlined below. Your new working arrangements will begin from. I am unable to accommodate your request for the following reasons (see section 6.8 for the service reasons: Note to the employee Please note that any change in your working pattern or contract will be a permanent change to your terms and conditions of employment unless explicitly agreed. There is no automatic right in law to revert back to your previous working pattern. If you are unhappy with the decision you may appeal against it to the next level of management as specified in the Retirement Arrangements Policy PP23. Managers Name Managers Job Title Signature.. Date Retirement Arrangements Policy v3.1 21
Appendix 3 Procedure for the request to flex retirement arrangements Employee wishes to consider flexing their working arrangements prior to leaving the Trust. Employee must make a formal request (using the attached pro forma) to do so. This should be received at least 3 months before the proposed date. The employee, appropriate service manager, line manager and a senior member of the Personnel team will then meet to discuss the request. This must be within 28 days of receipt of the request. The employee will be informed of the decision, within 14 days after this meeting (using the pro forma attached). Where appropriate, they will be offered the right of appeal. If the request if refused the employee has the right to appeal. This appeal must be lodged within 14 days from receipt of the written confirmation of decision. If the request is successful the employee and manager will discuss the arrangements for continuation of service (potentially involving new mutually agreeable working patterns or duties) The appeal must set out the grounds of appeal, be in writing, and be dated. The Link Director and Head of Personnel will then arrange to meet with the individual employee (within 1 month) to discuss the appeal and potentially any alternative arrangements regarding reduce hours, working patterns or duties. The final decision will then be made regarding the appeal (within 14 days). (See notes in main policy document for additional procedural notes). NB: The law requires that all requests, including any appeals, must be considered and decided on within a period of three months from first receipt, unless you agree to extend this period with the member of staff. Retirement Arrangements Policy v3.1 22