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Retirement Policy

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					                   Retirement Policy
         (including Flexible Retirement Options)




APPROVED BY     DATE
Policy Group    30/06/2008
JSCC            20/08/2008
Board           21/10/2008


Policy Date:   October 2008
Review Date:   October 2010
Harrow Primary Care Trust
Retirement Policy (including Flexible Retirement Options)

Contents                                                                                                                               Page


Introduction ..................................................................................................................................3
1.    Pension Rights ......................................................................................................................3
2.    Notification ............................................................................................................................3
3.    Role of the Manager ..............................................................................................................4
4.    Working Beyond 65 ...............................................................................................................4
5.    Planed Retirement - Duty to Consider .................................................................................5
6.     Employees Over Normal Retirement Age ...........................................................................6
7.    Appeals…………………………………………...…………………………………………………….7
8.     Flexible Retirement ..............................................................................................................7
          Your Options .....................................................................................................................7
          Wind Down ........................................................................................................................7
          Step Down .........................................................................................................................7
          Retire and Come Back ......................................................................................................8
          Supporting Winter Peaks .................................................................................................8
9.    Reasons For Retirement Other Than Age............................................................................8
          Organisational Change or Redundancy ..........................................................................8
          On Grounds of Ill Health (Incapacity) ..............................................................................9
10. Long Service Awards ............................................................................................................9
11. Retirement Parties.................................................................................................................9
12. Personal Thank You Letters .................................................................................................9
13. Review....................................................................................................................................9



Appendix 1: Request for Long Service Gratuity ..........................................................................10




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Approved: October 2008
Review Date: October 2010
Harrow Primary Care Trust
Retirement Policy (including Flexible Retirement Options)



INTRODUCTION

      This policy is intended to provide staff with information regarding their retirement and
      to deal with the issues sensitively and promptly. The policy has been produced to
      enable both staff and managers to deal with this issue consistently across the PCT.


1.    PENSION RIGHTS

      1.1      Staff can retire at the normal NHS retirement age. This is currently 65 for
      men, 65 for women born after 6 April 1955 and 60 for women born before 6 April
      1950. Women born between 6 April 1950 and 5 April 1955 are eligible to retire on a
      sliding scale.

      1.2    The provisions of the NHS Pension Scheme allow for all staff eligible for
      pension benefits to retire at 60 years of age.

      1.3     The provisions of the NHS Pension scheme also allow staff who fall into
      special classes eg: 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 (65 years).

      1.4     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.

      1.5      On April 1 2008 the NHS Pension Scheme was updated with some
      significant changes. Key features of the Scheme have been retained for those in
      membership on and immediately before 1 April 2008, including a normal retirement
      age of 60 and a pension based on final salary. This scheme will continue to be
      called the NHS Pension Scheme but for ease of identification is referred to as the
      NHS Pension Scheme (Amended April 2008).

      1.6      At the same time a brand new scheme was launched for new members
      joining for the first time on or after April 1 2008. The New NHS Pension Scheme will
      have a normal retirement age of 65, and greater flexibility around how and when
      members take their pension.

      1.7      Members joining for the first time on or after April 1 2008 will only be able to
      join the New NHS Pension Scheme.


2.    NOTIFICATION

      2.1      Human Resources will inform the employee, between 12 and 6 months
      before reaching the age of 55 (special classes) and 60 (other staff) as appropriate
      that he/she will have the option to retire at that time.

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Approved: October 2008
Review Date: October 2010
Harrow Primary Care Trust
Retirement Policy (including Flexible Retirement Options)


      2.2     Human Resources will also inform employees between 12 and 6 months
      before reaching the age of 65 that he/she will be expected to retire at that time.

      2.3     Where the individual has paid into the NHS Pension Scheme, a quote for
      the pension may be requested from the Pensions Officer in the Payroll Department
      on 020 8869 2197.

      2.4   Should an employee decide to retire he/she should advise their line
      manager giving as much notice as possible.


3.    ROLE OF THE MANAGER

      Once the manager has been advised of the employee’s intention to retire he/she will:

        3.1  Ensure that the employee knows where to obtain advice relating to their
        NHS Pension and this policy

        3.2     Discuss the employee’s retirement date with them and ensure a termination
        form is submitted at least two months prior to the actual leaving date, if they intend
        to retire. This is to allow maximum time to ensure arrangements for pension
        payments to be made, however it is recognised that in exceptional circumstances it
        may not be possible to give the full two months notice

        3.3    Ensure that the application form is processed if the employee is entitled to a
        long service gratuity and/or funds for a leaving party (see APPENDIX 1: REQUEST
        FOR LONG SERVICE GRATUITY)


4.    WORKING BEYOND 65

      4.1 Human Resources will inform employees between 12 and 6 months before
      reaching the age of 65 that he/she will be expected to retire at that time.

      4.2 The letter will advise them of:

          (a) their planned retirement date; and

          (b) their right to request to defer their planned retirement date no earlier than six
              months but no later than three months before their retirement date.


5. PLANNED RETIREMENT - DUTY TO CONSIDER PROCEDURE

        5.1   Employees have the right to request to work beyond the age of 65.
        Applications will be assessed on the basis of service provision and career
        progression within the PCT.



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Approved: October 2008
Review Date: October 2010
Harrow Primary Care Trust
Retirement Policy (including Flexible Retirement Options)

        5.2     Employees who wish to defer their planned retirement date should submit a
        written request to their Line manager, with a copy to the Human Resources
        Department, no later than three months prior to their planned retirement date. The
        letter should indicate if they wish their employment to continue for a stated period
        or until a stated date.

        5.3    An employee can make only one request to defer his/her original planned
        retirement date and the request must be made between six months and three
        months prior to that date. If a revised retirement date is agreed as a result of this
        procedure, any subsequent request to defer against this new agreed date must be
        made between six and three months of the revised retirement date.

        5.4   The employee’s manager has a duty to seriously consider the request,
        together with a duty not to retire the employee until a meeting to discuss the
        request has been held with the employee. The manager has discretion to agree a
        deferment or retirement date of between one and three years

        5.5    The manager will arrange a meeting with the employee to discuss the
        request, although a meeting is not necessary if the request is approved. The
        employee must take all reasonable steps to attend the meeting. In the event that it
        does not prove practical to hold a meeting within a reasonable period the manager
        will consider the employee’s request, including any representations made by the
        employee.

        5.6    The employee has the right to be accompanied at the meeting by a work
        colleague or trade union representative. A member of the Human Resources
        Department may be present to advise on the process.

        5.7    After meeting with the employee, the line manager should put in writing a
        request to the relevant Head of Service (unless the request has been made directly
        to them), stating why the employee wishes to work beyond 65.

        5.8    The manager will notify the employee of the decision, normally within 10
        working days of the meeting. Where the request is not approved or if the specified
        period of employment is for a shorter period than that requested by the employee,
        the manager should first discuss this with a member of the Human Resources
        Department. The letter will detail the employee’s right of appeal against the
        decision.

        5.9    If the meeting between the manager and the employee takes place after the
        planned retirement date the employee will remain in the Trust’s employ until the
        decision is communicated to the employee in writing. If the decision is not to
        approve the employee’s request to defer his/her planned retirement date, his/her
        employment will cease on a date agreed between the manager and the employee.

        5.10 If the outcome of an employee’s request to defer his/her planned retirement
        date is that a revised planned retirement date is agreed between the manager and
        the employee, the ‘Duty to Consider’ procedure must be followed again between
        one year and six months prior to the revised planned retirement date (see points
        above). Human Resources will inform employees between 12 and 6 months before

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Approved: October 2008
Review Date: October 2010
Harrow Primary Care Trust
Retirement Policy (including Flexible Retirement Options)

        reaching the end of the review period that he/she will be expected to retire at that
        time. Employee’s will have the right to request to continue at work. Employee’s will
        need to provide at least three months written notice of their intention to work
        beyond the end of their review period and specify how long they wish to continue at
        work. The manager should then put the request in writing to the relevant Head of
        Service (as outlined above). The employee will have the right to appeal against the
        Head of Service’s decision to the relevant Director.

        5.11 Where an employee does not want to continue working beyond age 65, it is
        not necessary to invoke the ‘Duty to Consider’ procedure.

        5.12 Employees should be aware that no further NHS Pension contributions can
        be made beyond the age of 70 (special classes are limited to age 65). Advise
        should be sought from the NHS pensions department if you are in any doubt about
        how long you may contribute to the scheme.

        5.13 This process is about the individual, not the post they occupy. If the
        individual is not allowed to continue to work after the age of 65, the post will be
        advertised and filled as per the agreed Trust procedure.


6.      EMPLOYEES OVER NORMAL RETIREMENT AGE

        6.1    Where an employee is already over 65, the above procedure must be
        applied.

        6.2       The line manager will write to the employee:

              •   if appropriate advising them that their job will continue as normal
              •   confirming their retirement date where one has been agreed
              •   providing details of the planned retirement procedure
              •   confirming the right to continue working and
              •   confirming that they will be contacted again in advance of the intended
                  retirement.

        6.3     Where no retirement date has been agreed, prior to implementing the above
        procedure, the line manager will meet with the member of staff to agree a mutually
        acceptable review or retirement date. Any pre-existing verbal or written agreements
        relating to retirement arrangements must be honoured.


7.      APPEALS

        7.1    An employee is entitled to appeal against the manager’s decision to refuse a
        request to defer his/her planned retirement date or a decision that specifies a
        period of employment that is shorter than the period proposed by the employee in
        his/her request, by giving written notice normally within 10 working days of the
        meeting, or as soon as is reasonably practical after the written decision is given to
        the employee.


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Approved: October 2008
Review Date: October 2010
Harrow Primary Care Trust
Retirement Policy (including Flexible Retirement Options)


        7.2   The written notice of appeal should be sent to the Human Resources
        Department and must set out the grounds of appeal.

        7.3   The Head of HR and OD (or his/her nominee) will arrange for the line
        manager’s manager, or a manager of an equivalent level not previously involved in
        the decision to hear the appeal. A representative from the Human Resources
        Department will also be present at the appeal hearing.

        7.4     The appeal hearing which can take place after the planned retirement date
        will be held normally within 10 days of the notice of appeal.

        7.5   The appellant has the right to be accompanied at the appeal hearing by a
        work colleague or a trade union representative.

        7.6    Following the appeal hearing the manager will notify the appellant of his/her
        decision in writing, normally within 10 working days of the date of the appeal
        hearing.

        7.6     The decision made at the appeal hearing is final.


8.      FLEXIBLE RETIREMENT

        8.1     There are other ways of looking at retirement. It needn’t be a hard and fast
        line you cross at a certain age – a sudden shift from working to not working. The
        following options would enable you to wind down gradually by reducing the number
        of hours you work, or moving into a less demanding role. And even when you do
        retire, you could come back to work part-time, full-time or for short periods, for
        example, in the winter months. These options should be fully discussed with your
        manager to obtain agreement.

      8.2       Your Options

      8.2.1 Wind Down
      As an alternative to simply retiring, you can wind down by working fewer days in your
      current post. Pensions for part-time staff are calculated on the whole time equivalent
      salary, so if you wind down rather than retire, this should not reduce your eventual
      pension. In the meantime, you will continue to build up pension entitlement, but on a
      part-time basis, so the entitlement you build up will be slightly less than if you
      continued on a full-time basis. A difference may occur where special allowances, for
      example a night shift allowance, are not attached to the part-time role (further advice
      should be sought from the NHS Pensions Helpline – see paragraph 8.3.

      8.2.2 Step Down
      It might be the pressure and responsibilities of your current role that you want to give
      up, without leaving work altogether. If so, you could look to step down into a less
      demanding job on lower pay, but which still makes good use of your skills and
      experience. With the formal agreement of your manager, the pension you had
      already earned before the step down could be frozen. You would then start a

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Approved: October 2008
Review Date: October 2010
Harrow Primary Care Trust
Retirement Policy (including Flexible Retirement Options)

         second pension based on your stepped down pay. When you finally retire you would
         receive both pensions added together. The frozen pension would also be kept up to
         date with cost of living increases during this period.

         8.2.3 Retire and Come Back
         Taking your pension does not mean you have to stop working. If you are over 60 the
         amount you earn should have no effect on your pension income. If you are under
         age 60, your pension can be affected but not until your earnings take your total
         income beyond your pre-retirement pay1. In both cases you and your employer will
         need to make sure that whatever age you are when you retire, you do not work for
         more than 16 hours a week in the first month of your retirement. Once you start
         drawing your pension you cannot build up any further pension benefits.

         8.2.4 Supporting Winter Peaks
         Your own experience will have taught you how winter can intensify pressure on the
         NHS. More people become ill; hospital admissions increase; staff can fall victim to
         flu and other illnesses. Winter may also be the time when, once you have retired,
         you have least opportunity to enjoy your leisure time. Cold wet weather, short days,
         and fewer chances to get out and about.

         If you are planning to retire, you may like to think about coming into work if needed in
         these peak winter months, or at other times.

         8.3          Flexible Retirement and Pensions

         It is important that before taking any decision about flexing your retirement, you get
         clarification from the NHS Pensions Agency. Call the NHS Pensions Helpline on
         01253 774 440 and have your pension reference or National Insurance Number
         ready.

         The Pensions Helpline is open:
         Monday to Thursday 0830hrs to 1700hrs / Friday 0830hrs to 1630hrs

         Advice is also available from the Pensions Manager in the Payroll Department who
         can be contacted on 020 8869 2197.


9.        REASONS FOR RETIREMENT OTHER THAN AGE

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

         9.2 Organisational Change or Redundancy
         Where it is in the interest of the efficiency of the operation of the NHS having
         considered all other options eg: continued employment, re-deployment, protected
         salary where downgrading has occurred. It will be at the discretion of the PCT to
         make this offer to individuals where it feels it is appropriate.


1
    This restriction does not apply if you retire early with an actuarially reduced pension

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Approved: October 2008
Review Date: October 2010
Harrow Primary Care Trust
Retirement Policy (including Flexible Retirement Options)

      9.3 On Grounds of Ill Health (Incapacity)
      Where an employee has been medically certified incapable of performing their duties
      because of illness of the mind or body. Further details are contained in Harrow
      PCT’s Managing Absence Sickness Policy.

      Further details can also be obtained from Human Resources or from the NHS
      Pension Agency direct.


10. LONG SERVICE AWARDS

      10.1       To qualify for long service awards staff must have gained 10 years
      continuous service within the NHS without a break of more than 1 year, this applies
      to full time and part time staff regardless of hours worked. Long service awards are
      designed to reward and encourage loyalty to the organisation. The manager must
      complete the request form for long service gratuity and copy it to Human Resources
      at least 3 weeks prior to the employee’s last day of service (see APPENDIX 1:
      REQUEST FOR LONG SERVICE GRATUITY).

      10.2     Long service awards will be made as follows: £8 per year of continuous
      NHS service up to a maximum of £200. It should be noted that if the individual
      chooses to have a personal cheque this will be subject to taxation and will be paid
      via the payroll. 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.


11. RETIREMENT PARTIES

      11.1       The PCT will contribute to the cost of a leaving party for any member of staff
      who is retiring and has gained 10 years continuous service within the NHS without a
      break of more than 1 year, 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.


12. PERSONAL THANK YOU LETTERS

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


13. REVIEW

      13.1    This Policy will be reviewed in 24 months’ time, or earlier if changes to lawful
      entitlements change.




                                                Page 9 of 10
Approved: October 2008
Review Date: October 2010
Harrow Primary Care Trust
Retirement Policy (including Flexible Retirement Options)

APPENDIX 1: REQUEST FOR LONG SERVICE GRATUITY

Applicant’s Name

Job title

Department / Directorate

Date of Retirement                                                 Date Commenced in NHS

Complete Years Service †                                           Years x £8 up to max of £200            £




Cheque/Gift vouchers and letter to be returned to

Print Manager’s Name                                                                Date Required




The employee may select from the following (please tick choice)

    Cheque ‡                  M&S                 Debenhams                Boots             John Lewis        WHSmith




Manager’s Signature                                                                                 Date

Director’s Signature                                                                                Date




To be completed by Human Resources

Finance – Please raise a cheque for a long service gratuity for the above member of staff

To be made payable to

For the amount of

Please give the cheque to

Requested by                                                                                        Date




To be completed by Finance Department

Name of Charitable Fund                                                               Fund Number

Cheque Number                                                                         A/C Code

T1 Code                                                                               TE Code

Completed by                                                                          Date




† Verified by Human Resources
‡ Personal cheques are subject to tax – vouchers are not

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Approved: October 2008
Review Date: October 2010

				
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