6 - Retirement Policy April 07 by Levone


									                             RETIREMENT POLICY

                                    POLICY No 6

                Approved by Executive Team 25th April 2007

Human Resources Department, Kirk House, 97-109 High street, Yiewsley, West Drayton, UB7 7HJ

                                       Retirement Policy
                                             No. 6
1.0    Introduction

It is the Trust’s intention to provide staff with information regarding their retirement and to deal with
the issues sensitively and promptly. This policy has been produced to enable both staff and
managers to deal with all retirement issues with consistency and fairness across the Trust.

2.0    Pension Rights

2.1    “Normal” retirement age under the NHS pension scheme is 60. All employees within the
       NHS may work until the age of 65 and request to work beyond age 65. Staff will be
       expected to retire on their 65 birthday. If they wish to work past 65, they must apply to do
       so in writing to their manager at least 6 months before they are due to retire. The manager
       must respond to the employee within fourteen days, to allow 12 clear weeks for pension
       arrangements to be made if necessary.

       The manager does not have to agree to an extention, however if they do not, they need to
       be able to demonstrate a genuine retirement (guidelines can be sought from HR).

2.2    The provisions of the NHS Pension Scheme allow for all staff eligible for pension benefits
       to opt to retire at 60 years of age if they wish to do so without losing pension rights.

2.3    The provisions of the NHS Pension scheme also allow staff who fall into special classes,
       e.g. nurses, midwives, health visitors, physiotherapists and staff with mental health officer
       status the option to retire at 55 years of age, though state pension will not be paid until the
       statutory retirement age, 60 for women and 65 for men (changing in 2012).

2.4    The NHS Pension scheme operates a Voluntary Early Retirement scheme. Under this
       scheme staff eligible for pension benefits may opt to take early retirement between the
       ages of 50 and 60 years of age. Both pension and lump sum will be actuarially reduced to
       take account of early payment.

2.5.   Ill health retirement can happen at any age (see section 6.1).

3.0    Working Beyond 65

3.1.   The HR department will write to the individual no earlier than 12 months before their
       intended retirement date and no later than 6 months before, informing them of the right to
       request to continue working beyond the age of 65.

       3.1.1. If the employee wishes to continue working they must respond to their manager to
              indicate that they would like to continue working within one month of receiving their
              notification, otherwise they will be retired.

       3.1.2. The Manager will respond to the employee in writing and will then meet with the
              employee to discuss their request.

3.2    For those staff for whom it has been agreed that they may work past the age of 65,
       they will be given one years notice as per 3.1 each year. If during the period of extended
       service, there are any concerns regarding the employees fitness for work, then an
       Occupational Health assessment could be requested.

3.3.   The employee may appeal against the decision (if it is not in their favour). The appeal
       meeting must be held as soon as is reasonably practicable. During the appeal the
       employee has the right be represented by a Union official, friend or work colleague, and an
       Human Resources representative will also be present.

4.0    Retiring before 65

4.1    For staff who wish to retire before the age of 65, the individual should inform their manager
       of their intention to retire as soon as he/she has made the decision. Once the individual
       has decided to retire, the manager will take on the following responsibilities;

       4.1.1 Ensure that the options under Flexible Retirement have been discussed where

       4.1.2 Advise them to contact a pensions advisor to ensure that the employee understands
             the implications of their decisions.

       4.1.3 Discuss the employee’s retirement date with them and ensure a termination form is
             submitted 3 months at the latest prior to the actual leaving date.

       4.1.4 Apply for funds if the employee is entitled to a long service gratuity and/or funds for
             a leaving party. (Appendix 1)

5.0    Flexible Retirement

5.1    A large number of NHS staff are over 50 years of age and approaching retirement. As
       part of this group, individuals retiring could play an important part in helping to match
       supply with demand within the PCT, especially at peak times of the year. The following
       options may be available to staff.

       5.1.1   Wind Down examples

               As an alternative to retiring, individuals can wind down by working fewer hours/days
               in their current post. Pensions for part time staff are calculated on the full time
               equivalent of their salary, so reducing their hours should not reduce their eventual
               pension. In the meantime the individual will continue to build up their pension
               entitlement. (Take advice from pensions advisor if required.)

       5.1.2   Step Down examples

               It might be the pressure and responsibilities of the individuals current role that is
               making retirement attractive to a member of staff. If so, it may be possible for them
               step down into a less demanding job on lower pay, but which still makes good use
               of their skills and experience. With the formal agreement of the line manager, the
               pension the individual already earned before stepping down could be frozen. A
               second pension based on the salary of the new job would then be started. When
               the individual finally retires, they would receive both pensions together. The frozen
               pension would also be kept up to date with cost of living increases during this

      5.1.3   Retire and come back examples

              Taking a pension does not mean the individual has to stop working. If the member
              of staff is over 60, the amount they can earn should have no effect on their pension
              If the individual is under the age of 60, their pension can be affected but not until
              their earnings take their total income beyond the pre-retirement pay.        In both
              cases, the individual and the PCT will need to make sure that whatever age the
              individual retires, they do not work more than 16 hours per week in the first month
              following retirement. Once the individual starts to draw their pension, they cannot
              build up any further pension benefits. A return must be to an approved post.

      5.1.4   Working during times of pressure (e.g. national emergency/bad winters)

              Certain periods can intensify pressure on service provision and it may also be a
              time when an individual who wishes to retire is able to provide assistance and may
              still want to contribute. Staff will be sent a form to complete to register upon
              retirement. Staff will be given a “response” card to keep with them with details.
              (Appendix 3)

5.2   NHS Pensions advice

      It is important that before taking any decision about flexing your retirement, the individual
      gets clarification from the NHS pensions agency as individual circumstances may vary.
      Contact details are available on page 6.

6.0   Reasons For Retirement Other Than Age

      Staff may be eligible for retirement on grounds other than age in the following
      circumstances: -.

6.1   On grounds of ill health (incapacity)

      Where an employee has been medically certified incapable of performing their duties
      because of illness the PCT may seek retirement on the grounds of ill health. Alternatively,
      an employee may request consideration for early retirement on ill health grounds by
      providing supporting medical evidence. In either case, the action must be supported by an
      appropriate medical report, normally from the Occupational Health department. Further
      information can be obtained from the Human Resources department.
      All applications for incapacity retirement must be approved by the Pensions Agency and
      are subject to a minimum of two years service.

6.2   In the interests of the efficiency of the Service

      Where the PCT considers that an employee is no longer able to fulfil the duties of his/her
      post, usually as the result of modern methods superseding the individuals experience, or
      because of ill health (insufficient to qualify for incapacity) the PCT can make an application
      to the Pensions Agency. Retirement may be available to staff over the age of 50 with a
      minimum of five years service. It will be at the discretion of the PCT to make this offer to
      individuals where it feels it is appropriate having ensured that all other possible approaches
      have first been explored, e.g. re-training, disciplinary action etc.

6.3   Voluntary Early Retirement

       An employee may choose to take voluntary early retirement from age 50 with a reduced
       pension and lump sum provided that he/she has a minimum of two years pensionable
       service and that the pension awarded exceeds the Guaranteed Minimum Pension.

7.0    Long Service Awards for retiring employees

7.1    To qualify for long service awards staff must have gained ten years service (less any break
       in service) within the NHS. This applies to full time and part time staff regardless of hours
       worked. The manager must complete the long service request form for long service
       gratuity (Appendix 1) and forward it to the Human Resources Department. Vouchers for
       most stores are available. Please indicate which retail vouchers you would like to receive.

7.2    Long service awards will be made as follows: £8 per year of continuous NHS service up
       to a max. of £200. Employees who choose to have vouchers will not need to pay tax on
       the amount they are entitled to; this will be paid by the PCT. Employees have a selection
       of choices of where they wish to receive gift vouchers for.

8.0    Leaving parties for retirees

       The PCT will contribute to the cost of a leaving party for any member of staff who has
       gained 10 years service within the NHS (regardless of the reasons for retirement) up to a
       maximum of £25, claimable from the Finance Directorate on completion of the appropriate
       form and attaching relevant receipts. Any problems in funding the party should be referred
       to the relevant Director in the first instance.

9.0    Personal Thank You Letters

       The Human Resources Department will notify the Chief Executive of all retirements. A
       personal thank you letter will be sent to the individual from the Chief Executive.

10.0   Review

10.1   The Trust will periodically review this policy to ensure its effectiveness.


Before making any decision, which may affect your pension, you should seek advice from the any
of the following.

Pension’s Officer
Payroll Department, Hillingdon Hospital
Tel:    01895 279908

The NHS Pensions Helpline for advice regarding Flexible Retirement options
Tel:  01253 774440

The NHS Pensions enquiry line for all other advice
Tel:  01253 774774

The Human Resources Department
Kirk House
Tel:   01895 452099

Human Resources
April 2007

                                                                                      APPENDIX 1

                               Hillingdon Primary Care NHS Trust

                            REQUEST FOR LONG SERVICE GRATUITY

Applicants Name:

Job Title:

Department /Directorate:
Date of Retirement:                                     Date commenced in
No of complete years                                    Amount:
service (verified by HR):                               (No of yrs x £8 up to a
                                                        max. £200)
Cheque / Gift Vouchers and letter to be returned to:                  Date required by:
(print manager’s name)

The employee may select Vouchers from the list in appendix 3. Please List the name of the
voucher selected below:

(Note: personal cheques are subject to taxation, vouchers are not)

Signed:                                              Dated:

Signed:                                    Dated:
To be completed by the Human Resources Directorate

To Finance:

Please raise a cheque for:

To be made payable to:

                                                                                         APPENDIX 2
                               FLEXIBLE RETIREMENT EXAMPLES

Wind Down

Neil is a laboratory technician, aged 58, with 32 years pensionable service. He wants to spend
more time at home helping with the grandchildren who he and his wife are looking after while their
daughter and her husband are out at work. But he doesn't want to stop working altogether. So he
moves into a part-time role, working 2/3rds of the hours he used to. He eventually retires at 64.

Working part-time he earns 60% of his previous salary, instead of a pension of 32/80ths (40%).
When he does retire, 6 years later, his pension is calculated on the full-time pay of the job. And
added to that will be a further 4/80ths - the equivalent of 4 full years service built up working 66%
part-time over 6 years.

Pat is 54, a senior staff nurse, with almost 20 years pensionable service. She has been thinking
about retiring at 55 to devote more time to gardening and other hobbies, but knows her pension
will be only 25% (20/80ths) of her present income. She wants more time of her own, so she
renegotiates her role to start working half-weeks of two and three days alternately. She carries on
working part-time until 61.

During this period, Pat earns 50% of her previous staff nurse salary and over 6 years add a further
3 years to her eventual pension entitlement. When she retires, her pension is still calculated on the
equivalent full-time salary for her job.

Step Down

For the last 10 years, Helen has been a busy Clinical Manager on the management pay scale. She
is 56 and could retire now with 24 years pensionable service. But whilst she is ready for a change,
she still enjoys many aspects of her work. With the formal agreement of her Trust to freeze her
pensionable pay at the previous level, she applies for a job as a G grade diabetic liaison nurse,
working in out patients, the medical wards and community. Helen gets the job. Her salary in the
new role is 30% lower; she works for a further 4 years, retiring at 60.

Her income while she continues to work is 70% of her previous earnings, rather than a pension of
24/80ths (30%). When she does retire, her pension is calculated on her earnings as a Clinical
Manager, with the addition of 4 extra years’ entitlement at the lower earnings level.

Retire and come back

Jean is an Occupational Therapist approaching her 60th birthday, with 30 years of pensionable
service. She has always intended to retire at this age but, as it gets closer, she realises she'll miss
the teamwork and involvement with patients. So she discusses with her manager the possibility of
part-time work, helping to cover holiday periods for other team members and providing continuity
of contact for patients. The arrangement is flexible, but over the course of a year averages 2 days
a week.

In retirement Jean has a pension of 30/8ths of her pay at retirement. She also earns 2/5ths of her
previous salary from the flexible part-time work. This has no effect on her pension.

                                                                                           APPENDIX 3

I ………………………………………. …………

will be retiring on ………………………………………………..(date)

from the post of ………………………………………………… (job title)

at Hillingdon Primary Care Trust.

I would like to offer my skills during times of crisis and am happy to be contacted on

……………………. (telephone number) should I be required.                 I agree to be contacted once per

year to ensure that I am still willing to contribute and that contact details are up to date.

I agree to carry an “emergency support” card with contact numbers to aid my availability.

Example of card:

                    FRONT                                                     BACK

 NAME: ………………………………….                                      Hillingdon Primary Care Trust
 NAME: …………………………………..                                     Kirk House
 I am a Hillingdon PCT emergency support
                                                           97-109 High Street
 worker.Hillingdon PCT emergency support
 I am a                                                    Yiewsley
 worker. Tel: 01895 452099
 Tel No. …………………………………..                                   West Drayton, UB7 7HJ
 Date: ……………………..(valid one year)
 Date: ………………. (Valid for one year)                        Director on-call number: 07960 827840

Guidance Notes to be issued with it

Please inform spouse/relatives that you carry this card and instruct them to return the card should
your circumstances change and you are unable to respond yourself in order to avoid upset to you
and your relatives/spouse. Please inform us if your contact details/address change.

If we are unable to contact you during the yearly checking cycle, we will take you off the list.


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