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Retirement Policy Aug 10

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Retirement Policy Aug 10 Powered By Docstoc
					                                    wmsnt accessible mobility for all
             Human Resources Policies and Procedures

Subject:                 Retirement and Post Retirement Working
                         Policy
Issue Date:              1st August 2010
Issued By:               Sally-Ann McKevitt, HR Manager

PURPOSE

This policy is designed to:

    Help employees plan for their retirement.
    Recognise the service of an employee who retires.
    Enable the company to retain employees who reach the Company / National
     Retirement Age (currently 65 years) and wish to continue working.

This policy is subdivided into 4 key areas as follows:

1.    What is Retirement
      When can I retire?

2.    Planning your retirement
      2.1 Your Company Pension
      2.2 Your State Pension
      2.2.1 Deferring your State Pension
      2.3 Budgeting

3.    Retirement Procedure
      3.1 Should you wish to retire
      3.2 Should you wish to continue working
      3.3 Training

4.    Retirement Gift

Appendix A           -          Budget Planner

Appendix B           -          Company Benefits for when you are over 65

Appendix C           -          Retirement Process Chart




HR/Pol&Proc/Retire Pol Aug 10            Page 1 of 12                       Issue 5
1. WHAT IS RETIREMENT?
When you reach the National / Company Retirement Age, you will be able to retire.
However should you wish to continue working following your 65 th birthday this policy
details how you will be able to request to do so.




HR/Pol&Proc/Retire Pol Aug 10         Page 2 of 12                            Issue 5
2. PLANNING YOUR RETIREMENT
The majority of people retiring today are fitter, more skilled and better off financially
than any previous generations and can realistically look forward to 15-20 or more
years of active life ahead. As a result, planning for the future is extremely important.

As they approach retirement, many people are concerned about issues such as
money, how they will occupy their time, how to look after their health and the effect
of retirement on relationships.

This document aims to set you thinking along constructive lines, to indicate what is
possible and to point you in the right direction to sources of information.

2.1 YOUR COMPANY PENSION
The Pensions Advisors will be able to give you information on planning your pension
and will contact you six months before your intended retirement date. Should you
wish to contact them before this date please do so on 0871 872 3366 and they will
arrange to visit your depot.

The Pensions Advisors will be able to provide you with the following information:

   Your Company pension entitlement
   The costs/benefits of deferring your Company pension
   When and how you will receive your Company pension
   Working after you start getting your Company pension
   Early retirement and your Company pension.
   Any other queries you may have.

The Pensions Advisors visit Head Office on a monthly basis and visit our depots as
required.

2.2 YOUR STATE PENSION

With regard to your State Pension, if you have any queries or think that you may not
be obtaining your full entitlement, you should contact your local Social Security office
as soon as possible.

For information on your state pension and other advice you can contact the Pension
Service on www.direct.gov.uk/en/Pensionsandretirementplanning/index.htm

2.2.1 DEFERRING YOUR STATE PENSION
You can defer claiming your state pension, so that you can get more state pension
when you do retire. If you decide to defer claiming your state pension then there are
a number of choices available to you, for information on the choices available please
contact the Pension Service.




HR/Pol&Proc/Retire Pol Aug 10           Page 3 of 12                             Issue 5
2.3 BUDGETING

We do not need to be accountants to know that once we stop earning, our income
will drop. In order to be able to manage your money well, you need to work out how
much income you will have and what your outgoings will be. Knowing the facts is a
first priority.

You may find it useful to complete the budget planner (appendix A) and you may be
pleasantly surprised to find that the difference is far less than you had feared.

The Citizens Advice Bureau can offer FREE advice on Pensions. The Pensions
Advisory Service (TPAS) provide an advisory service on both occupational and
personal pensions; the service is FREE and confidential, they can be contacted on:

Helpline: 0845 601 2923 local rate.

Email: enquiries@pensionadvisoryservice.org.uk

www.pensionsadvisoryservice.org.uk




HR/Pol&Proc/Retire Pol Aug 10         Page 4 of 12                         Issue 5
3. RETIREMENT PROCEDURE
Nine months prior to you reaching the retirement age, you will receive a letter
detailing your scheduled date of retirement and your right to request to continue
working.

3.1 Should you wish to retire following receipt of your notification letter please
    write to your Manager to confirm that it is your intention to retire. Please note
    that your retirement date has to be your actual birthday, should you wish to
    leave before this date you are able to resign with the appropriate notice as per
    your terms and conditions but please note this will not be classed as retirement.

    Should you retire a company presentation will be arranged for your final day and
    the Chief Executive (should you have two years or more service) will present you
    with a gift. Should you not wish to have a formal presentation the Chief
    Executive will arrange to meet with you on an individual basis. Following receipt
    of an HR termination form the HR Department will write to you to confirm your
    leave date, final monies owing i.e. expenses, overtime, holiday, and ask you to
    return all company property and any other information you have requested.

    The Pension advisers will also write to you to ask which option you wish to opt
    for regarding your pension. The options are currently: (please note individual
    advice on your circumstances may differ)
   Take the benefit and draw on the pension.
   Freeze the pension.
   Defer pension payments.
   Continue paying personal contributions by direct debit.

3.2 Should you wish to request to continue working, complete the Request to
    Continue form that will be enclosed with your notification of retirement letter and
    return it to your Manager as soon as possible.          Your request to continue
    employment must be made within 9 to 3 months before your scheduled
    retirement date. Should you make a request after the 3-month cut off point,
    your request will be considered but the Company may not be able to fulfil the
    request as it may, for example, have already recruited your replacement.

    Following receipt of the letter your Manager will give your request due
    consideration. Please note your sickness, absence and disciplinary record will
    be considered along with the business need for your job to continue. You will be
    invited to attend a meeting with your District Manager / Head of Department and
    HR representative to discuss your request and whether it is possible. At the
    meeting you can be accompanied by another worker but please note there is no
    statutory obligation that it is a Trade Union Representative. Following a decision
    you will be sent a letter to confirm the outcome and given the right of appeal.

    Should your application be accepted following the meeting you will be sent a
    letter confirming this and detailing the length of period your employment will
    continue for. This is likely to be up to three years; during the second year your
    intended date of retirement will be reviewed.



HR/Pol&Proc/Retire Pol Aug 10          Page 5 of 12                             Issue 5
    Should your application be declined following the meeting you will be sent a
    letter declining your request and confirming the date of your retirement when
    your employment will end. You will be given the right of appeal.

    Should you wish to appeal please write to the next level of Manager detailing
    your reasons for appeal. An appeal meeting will be arranged as soon as is
    practical and you will be notified in writing.

    Should you wish to leave at any point following your continued employment and
    prior to your scheduled retirement date you are able to resign as per your terms
    and conditions.

3.3 Training

In the case of a driver, it is imperative for Health and Safety reasons that all drivers
attend the driver refresher course every 3 years.




HR/Pol&Proc/Retire Pol Aug 10          Page 6 of 12                              Issue 5
4. RETIREMENT GIFT
When employees reach their retirement age and wish to retire, they will receive a gift
in recognition of their service, together with a letter of thanks from the Chief
Executive. The scale of gift will be commensurate with the employee’s length of
continuous service.

The scale is as follows: -

5 years service = £10

For each year’s service above 5 years = £10 for each full year service completed up
to a maximum of 25 years.

25 years service and above = £250.

The gift should be a present that where possible can be suitably inscribed. Please
note that cash or vouchers are not permitted as the gift.

Retirement Gift Procedure

Following the employee confirming in writing their intention to retire, the HR
Assistant will inform the Chief Executive and the Operations Manager by email.

Following receipt of the resignation letter, the HR Department will also confirm to the
Manager the sum of money available for a retirement gift to be purchased for the
employee. The Manager should arrange for the gift to be purchased, wrapped and
handed to the Chief Executive, on the day of the presentation together with a card
for the Chief Executive to sign. Petty cash can be used to purchase the gift as long
as receipts are available for VAT purposes. NB. Gift vouchers or cash are not
allowed as the ‘gift’.

Where possible the gift will be presented by the Chief Executive, at the workplace
concerned. The Depot or Department will arrange for a presentation to be made
with a representative group of colleagues present. Where appropriate a buffet can
also be arranged locally by the Manager. The Manager should liaise directly with the
Chief Executive to discuss and agree an appropriate time for the presentation, the
Manager should also ensure that the Chief Executive has all the relevant
information.

Should the employee not wish to have a formal presentation and buffet, then the
Chief Executive is more than happy to meet and present the gift to the employee
separately.

Please note that should you be successful in delaying your retirement, that upon
your ultimate retirement from the Company, should you fulfil the entitlement
requirements, a presentation, gift and so forth will be arranged for you at that time
rather than at the original retirement date.




HR/Pol&Proc/Retire Pol Aug 10          Page 7 of 12                             Issue 5
Appendix A


                                BUDGET PLANNER

                   Expected Sources of Income upon Retirement


A.    Income Received Before Tax

           State basic pension                         ……………..
           Graduated pension                           ……………..
           SERPS                                       ……………..
           Occupational pension(s)                     ……………..
           Self-employed or personal pension           ……………..
           State benefits                              ……………..
           Casual or other pre-tax earnings            ……………..

           TOTAL                                       ……………..

           Less Any Tax Allowance(s)                   ……………..

           TOTAL A                                     ……………..


B.    Income Received After Tax

           Dividends (unit trusts, shares, etc)        ……………..
           Bank deposit account                        ……………..
           Building Society Interest                   ……………..
           Annuity income                              ……………..
           Other (include earnings subject to PAYE)    ……………..
           TOTAL B                                     ……………..

           TOTAL A & TOTAL B                           ……………..

           Less Tax                                    ……………..
           Plus Other tax-free receipts                ……………..
           Investment Bond interest                    ……………..
           National Savings interest                   ……………..
           Other                                       ……………..

           TOTAL NET INCOME                            ……………..


HR/Pol&Proc/Retire Pol Aug 10          Page 8 of 12              Issue 5
                          BUDGET PLANNER CONT’D

                                UNAVOIDABLE OUTGOINGS


Items                                                     Estimated Monthly Cost

Food                                                               …………….
Rent or Mortgage repayments                                        …………….
Council Tax                                                        …………….
Repair and maintenance costs                                       …………….
Heating                                                            …………….
Lighting and other energy                                          …………….
Telephone                                                          …………….
TV Licence / rental                                                …………….
Household insurance                                                …………….
Clothes                                                            …………….
Laundry, cleaner’s bills, shoe repair                              …………….
Domestic cleaning products                                         …………….
Misc. services eg plumber, window cleaner                          …………….
Car (incl Tax, insurance, petrol etc)                              …………….
Other Transport                                                    …………….
Regular savings/life assurance                                     …………….
HP/other loan repayments                                           …………….
Outgoings on health                                                …………….
Other                                                              …………….


TOTAL                                                              …………….

NB Before adding up the total, you may wish to look at the ‘Nominal additional
expenditure’ list, as you may well want to juggle some of the items between the two.




HR/Pol&Proc/Retire Pol Aug 10           Page 9 of 12                         Issue 5
                           BUDGET PLANNER CONT’D

                       NOMINAL ADDITIONAL EXPENDITURE


Items                                                       Estimated Monthly Cost

Gifts                                                                 …………….
Holidays                                                              …………….
Newspapers/books/videos                                               …………….
Drink                                                                 …………….
Cigarettes/tobacco                                                    …………….
Hairdressing                                                          …………….
Toiletries/cosmetics                                                  …………….
Entertainment (hobbies, outings, home entertaining etc)               …………….
Misc. subscriptions/membership fees                                   …………….
Charitable donations                                                  …………….
Covenants                                                             …………….
Expenditure on pets                                                   …………….
Other                                                                 …………….


TOTAL                                                                 …………….

NB For some items, such as holidays and gifts, you may tend to think in annual
expenditure terms. However, for the purposes of comparing monthly income versus
outgoings, it is probably easier if you itemise all the expenditure in the same fashion.
Moreover, if you need to save for a special event such as your holiday, it may help if
you put so much aside every month (or even weekly).




HR/Pol&Proc/Retire Pol Aug 10          Page 10 of 12                             Issue 5
Appendix B

COMPANY BENEFITS FOR WHEN YOU ARE OVER 65

Pension

The Company retirement age is currently 65 years of age, however, should you be
successful in deferring your retirement date the Group Personal Pension Scheme is
open to you up to your 70th birthday as long as you remain in WMSNT’s
employment. This will be subject to you agreeing to pay a minimum premium of
2.5% of your basic pay per month from your salary to the pension scheme; the
Company will contribute a sum equivalent to 5.25% of your basic pay.

Life Insurance Cover is now available to all employees who are members of the
Company Group Personal Pension Scheme up to 70 years of age. Currently no
medical is required.

All new employees are able to join the Group Personal Pension Scheme up to their
70th birthday.

Your employment is not contracted out of the State pension scheme

Statutory Sick Pay (SSP)
In line with government legislation SSP is available to all employees.

Company Sick Pay
This is available to you in line with the Company’s Sickness Benefit provision.

Maternity and Paternity Pay and Parental Leave
In line with government legislation this is available to all employees.

Time Off For Dependants
Although the government does not offer this benefit to you if you are over retirement
age, the Company will grant you unpaid time off to attend to emergency situations
concerning Dependants.

Holiday
Your standard holiday entitlement is 24 days per annum, this is pro-rata for part time
employees and employees who join or leave part way through a year.

BHSF
The BHSF scheme is available to employees over the age of 65 as long as you were
a member before your 65th birthday and remain in our employment. For people
wishing to join after 65 there is a separate independent Choices scheme that offers
cover for all ages.

Spectacle Discount Scheme
Although you may be eligible to have a free eye test through the NHS, we are able
to offer you discount vouchers for you to buy your spectacles at Specsavers. This
voucher currently offers a £20 discount (available from your Depot), however,
Specsavers do offer an over 60s discount day, which may be cheaper for you –
please enquire at your local Specsavers.

HR/Pol&Proc/Retire Pol Aug 10          Page 11 of 12                              Issue 5
Appendix C
                     RETIREMENT PROCESS CHART
                       9 months prior to employees retirement
                       HR will send a letter (R1) detailing the
                       employee’s intended retirement date and
                       enclosing a Request to Continue
                       Working Form (R8)

                                           OR
    Employee submits Request to
    Continue Working Form (R8) to                       Employee writes letter to Manager
    Manager ASAP or before 3                            to accept retirement date. A
    months prior to their intended                      meeting can be arranged to discuss
    date of retirement.                                 retirement arrangements should the
                                                        employee request it.

           Employee is invited to
           attend a meeting with                        Manager organises
           Mgr and HR to discuss                        retirement gift and
           their request to continue                    presentation as
           working (R2)                                 appropriate.


           Manager, HR and
           employee attend
           meeting.

                      OR


  HR writes to employee        HR writes to employee
  to accept request (R3)       to decline request (R4)
  and confirm the              and reconfirm the
  employees new                existing retirement date.
  intended date of                                             OR
  retirement. Procedure
  will restart in the 2nd                                       Employee writes to
  year of their continued                                       appeal to next level of
  employment.                                                   manager.

                                                                HR invites Employee to
                                                                attend an appeal (R5).



                                                                Meeting is held with next
                                                                level of Manager and HR
                                                                (as note taker).


                                                        OR
                                                                HR writes to employee to
                                                                decline appeal request
       HR writes to employee to accept request                  (R6) and reconfirm
       (R7) and confirm new intended date of                    existing retirement date.
       retirement date. Procedure will restart in the
       2nd year of their continued employment. of 12
HR/Pol&Proc/Retire Pol Aug 10            Page 12                                          Issue 5

				
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