This Policy supersedes the previous Retirement Guidance for Managers and Employees issued in January 2012.

Transcription

1 TITLE: RETIREMENT POLICY AND PROCEDURE VALID FROM: JULY 2016 EXPIRES: JUNE 2019 REFERENCE: WFC 12 This Policy supersedes the previous Retirement Guidance for Managers and Employees issued in January Page 1 of 19

2 Version: 1.0 Policy reference and description of where held. Title, name and contact details for author: Title, name and contact details for responsible director: WFC 12 Liz Lubbock, Policy, Projects and Engagement Lead, OD Team Emily Boynton, Director of HR and Organisational Development Approved by originating committee, executive or departmental management group HR Policy Group electronically on 29/02/2016 and HR Policy Group meeting on 06/06/2016. Ratified by Policy Ratification Group: 12 th July 2016 Review date: 2 years maximum for clinical guidelines 3 years maximum for other documents January 2019 Target audience All staff Version Control Sheet Version Date Author Status Comments 1.0 July 16 Liz Lubbock Final Policy and procedure to replace the previous Retirement Guidance for Managers and Employees. Page 2 of 19

3 CONTENTS: Section Page 1. Introduction 5 2. Aims and objectives Benefits of flexible retirement 5 3. Definitions 6 4. Duties Line managers responsibilities Employee responsibilities HR Administration team Workforce Business Partners/HR Advisors 7 5. Procedural document for retirement Planning for retirement Pre-retirement support and advice Discussing retirement Options following the workplace discussions Working on the Bank Retirement flexibilities Re-entering employment after retirement Retirement process Succession planning Ill-health retirement Retirement gifts Retirement parties Exit questionnaires and interviews Consultation Approval and ratification Dissemination and implementation Archiving Training 14 Page 3 of 19

4 Section Page 11. Monitoring and auditing compliance with this document Review arrangements Associated documentation References Appendices 15 A: Retirement process for employees (flowchart) 16 B: Pre-retirement support and advice 17 C: Equalities impact assessment pro forma 18 Page 4 of 19

5 1. Introduction The Trust is committed to equal opportunities for all its employees and recognises the contributions of a diverse workforce, including the valuable skills, knowledge and experience of older employees. This is reflected within the Trust s People Strategy and Recruitment and Retention Strategy from which actions will support a diverse and flexible workforce. Employees may voluntarily retire at a time of their choosing by giving notice under their contract. However, views of retirement are changing and many employees would prefer flexible retirement options and to work for as long as they wish. To facilitate this, the Trust is committed to supporting employees by considering flexible working arrangements and supporting the health, safety and wellbeing of employees through their longer working lives. Employers may use a fixed retirement age in limited circumstances, where it would be a proportionate measure to achieve a legitimate business aim. The Trust considers that it does not require a fixed retirement age, or Employer Justified Retirement Age, for its employees but reserves the right to review this decision in the future. This policy applies to all employees directly employed by the Trust. 2. Aims and Objectives The purpose of this policy and procedure is to highlight: benefits of flexible working arrangements to accommodate the needs of the employee and the service; where employees can seek information and advice when planning for their retirement; when and how to have conversations to discuss future plans, including retirement; options that are available to employees; the steps that should be followed when an employee wishes to retire; the importance of succession planning; exit questionnaires and interviews so that the Trust can learn from employees experiences: ill health retirement. 2.1 Benefits of flexible retirement In the highly competitive and ageing workforce market in which the Trust operates, the Trust aims to enable flexible retirement arrangements where possible to: Page 5 of 19

6 retain key skills, knowledge and experience that employees offer; provide a greater choice for employees to meet their individual needs and to support their work/life balance; create of a wider pool of expertise for recruitment; deliver a strategic and effective response to workforce challenges; provide equality of opportunity and fairness for all employees 3. Definitions 3.1 Retirement: when a staff member chooses to cease work on a permanent basis. 3.2 Retirement age: the age at which a staff member chooses to retire from work. The Trust does not have a set retirement age and there is no statutory default retirement age. 3.3 Normal pension age: the age at which a staff member can draw their pension. This will depend on the scheme to which they belong. 3.4 State pension age: the earliest age at which a staff member can claim a state pension, subject to qualifying conditions. 3.5 Flexible retirement: flexibility regarding the age at which a staff member retires, the length of time a staff member takes to retire, or the nature and intensity of work in the lead up to final retirement. (See Flexible Working Policy for flexible retirement options.) 3.6 Special class status: is applicable to members of the 1995 section of the NHS Pension Scheme who have remained in the 1995 section and who work as a nurse, midwife, physiotherapist, health visitor or occupational health nurse. Qualification is dependent on an individual having been awarded special class status. More information is available on the NHS Pensions website ( 3.7 Retirement gifts: financial reward for staff who retire from the Trust after long service. See the Trust s Charitable Funds Committee Retirement Gift Guidelines (in the policy store on the intranet). 3.8 Bank staff: people providing temporary staffing cover to services across CLCH, often at short notice for planned and unplanned shortfalls in staffing. People can choose whether or not to accept work they are offered, providing an opportunity for them to continuing working on an ad hoc basis around their lifestyle. Work is not guaranteed. Page 6 of 19

7 4. Duties 4.1 Line Manager Responsibilities To ensure that staff are made aware of this policy. To have open discussions with staff about their future plans but not to advise them in relation to their pension. To ask staff if they would like to join the Trust bank. To complete appropriate paperwork relating to retirement and send it to the HR Administration Team as early as possible. To support and encourage staff to attend a pre-retirement course. To undertake succession planning and, if filling the post, process paperwork in a timely manner. 4.2 Employee responsibilities To seek advice about options available to them in relation to retirement planning. To discuss their future plans with their manager, including any plans for retirement as early as possible to support the succession planning process. To give their manager written notice in accordance with their contractual notice period or, if a member of the NHS Pension Scheme, at least 4 months notice so that pension benefits can be arranged. 4.3 HR Administration Team To provide information to managers and staff; To provide quotes and retirement packs to staff; To process retirement applications. By law, Pensions Officers cannot offer financial advice. Therefore, while they have a responsibility to provide information about the NHS Pension Scheme and the options available, they will not advise staff. 4.4 Workforce Business Partners/HR Advisors To assist managers and staff with the application of this policy and provide information where necessary. Page 7 of 19

8 5. Procedural document for retirement 5.1 Planning for retirement It is important for an employee to be prepared as they get closer to the age that they want to stop working and this may include starting to think about retirement options a couple of years ahead of time and about choices that they will need to make. Some examples may include: working out their likely retirement income; considering ways to boost their pension; budgeting for changes in day-to-day spending after retirement; clearing debts before retirement; deciding when to start taking their pension. 5.2 Pre-retirement support and advice The Trust advises employees contemplating or preparing for retirement, including making informed decisions about issues such as the timing of their retirement and their pension provision, to seek information and advice first. Examples of where staff may be able to obtain support and/or advice are included in appendix B. The Trust provides a Planning for your retirement half day session for employees within 5 years of retirement, details of which are on the intranet. This session aims to provide information that will facilitate attendees to make decisions on their financial affairs ahead of their retirement. It covers State and NHS Pensions, taxation, saving and investing, credit history, mortgages and re-mortgages, wills and inheritance tax. 5.3 Discussing retirement Open discussions between managers and employees about future plans provides an informal opportunity for both the employee and the Trust to help facilitate the transition from work to retirement. It allows employees to have conversations in good time with their managers and, with sufficient information, to be able to make the right decisions about their future plans Annual appraisal requires managers and employees to discuss an employee s future aims and career development. This may include short, medium and long term plans and retirement plans may form part of this conversation. As some employees, upon reaching the age of 55 or 60, may become eligible to draw their pension, they may want to have a Page 8 of 19

9 discussion about future options and agree to revisit the options at regular intervals as necessary Where an employee indicates an intention to retire, this will not be contractually binding on him or her. Until the employee has provided the manager with written notice to retire, the employee will be entitled to a change of mind about the timing of their retirement. 5.4 Options following the workplace discussions An employee may have a number of options as to how and when they retire, depending on: their circumstances and needs; the needs of the service; the pension scheme to which they belong. If the employee: a) indicates that they wish to retire at a future date, they should inform their manager if they want to discuss adjusting their working hours, reducing their duties or altering their role leading up to retirement. b) wants to continue working in their current role with no changes, no action needs to be taken. c) wants to retire, they must write to the manager providing at least their contractual notice period, or longer if they want to allow time for their pension to be actioned (see section 5.7). d) would like to work more flexibly, they may be able to request flexible working arrangements. See the Trust s Flexible Working Policy. e) would like to apply for another role within the Trust, the usual application and recruitment processes would apply. If the role is on a lower pay band, they may wish to contact their pension provider to discuss the effect that this may have on their pension. 5.5 Working on the Bank The Trust values the skills and experience that many retiring staff have attained and staff are encouraged to consider if they would like to sign up for the Trust Page 9 of 19

10 bank before, on or after retirement. Whilst work cannot be guaranteed, there are a number of benefits to being on the bank. It provides opportunities to: pick and choose the hours worked; maintain contact with colleagues; stay in touch with their profession; earn additional income; keep active and continue contributing to the NHS; It could also help with adjusting to retirement. To join the bank, the manager needs to contact the Capita HR team who will identify the necessary forms for completion. 5.6 Retirement flexibilities: NHS Pension Scheme The brief summary in the table below shows flexibilities for NHS Pension Scheme members, correct at time of writing this policy. For up-to-date information, staff should check the NHS Pensions website. Brief summary of approaches to retirement NHS Pension Scheme (details vary) Step down Wind down Retire and return Draw down Late retirement enhancement Defer retirement and take up a less demanding role on a lower pay band, e.g. to reduce level of responsibility. Defer retirement by remaining in current post and working fewer hours or days. Retire from the Trust and, following an agreed break, return to NHS employment. Members of the 1995 section would not be eligible to re-join the NHS Pension Scheme. Take part of pension benefits and continue in NHS employment, enabling members to benefit from being able to partially draw down their pension benefits and supplement their income. If a member chooses to retire later than their normal pension age, their pension benefits will be increased by the application of late retirement factors. 1995, 2008 and 2015 schemes. 1995, 2008 and 2015 schemes. 1995, 2008 and 2015 schemes and 2015 schemes only and 2015 schemes only. Page 10 of 19

11 NHS Pension Scheme protection is only available in the 1995 scheme. Information on available options to increase pensions is available on the NHS Pensions website. 5.7 Re-entering employment after retirement Employees who have retired from the Trust, but would like to be re-employed on either a permanent contract, fixed-term contract or as a bank worker for the Trust, are required to take a break before commencing re-employment. Everyone must have a 24-hour break from employment. If in the 1995 NHS Pension Scheme, they must additionally work no more than 16 hours per week in the first calendar month after retirement. The effect on an NHS Pension Scheme member s pension of returning to NHS work after retirement depends on which Section of the Scheme they are a member of and what their last day of pensionable employment was. Advice is available from the NHS Pensions Agency. 5.8 Retirement process When an employee makes the decision to retire, the following steps must be taken: The employee must write to their manager explaining their intention to retire and on what date. They must provide at least their contractual notice period or, if their intention is to retire and take their NHS pension immediately on retirement, at least 4 months notice The manager will write to the employee to acknowledge receipt of their notice to retire When the retirement date is confirmed, the employee and line manager will complete and submit the staff termination e-form together with the resignation/retirement letter. It is important to complete the form promptly in order to avoid any overpayment or delay in the staff member receiving their pension. The form is available on the intranet. (If staff are unable to find the form, they can contact Capita HR or their HR Advisor or Workforce Business Partner). 5.9 Succession planning When managers are discussing future plans with individual employees, they should consider the experience and skills that each employee has and how these might best be deployed. For example, if an employee indicates an intention to retire within the next year, this would give the manager the opportunity to consider a number of possibilities, including: Page 11 of 19

12 how the Trust can retain the knowledge, skills and experience that the employee has gained while employed; how that knowledge, skills and experience could be passed on to other employees; whether or not there is anyone in the Trust who might be a suitable replacement for the employee when he or she retires (Trust recruitment procedures would apply); whether or not the older employee would be suitable for, and agreeable to, taking on a mentoring role in respect of less experienced staff or a prospective replacement; and whether or not the employee would like to reduce his or her working hours or take on a less responsible, or different, role in the run-up to retirement, and if such options are feasible from the organisation's point of view Ill-health retirement In cases of long term sickness absence, and where an employee s return to work is unlikely, the manager should ensure that they follow the Trust s Sickness and Absence Policy, available on the intranet, and seek advice from the Employee Health Service and their Workforce Business Partner or HR Advisor. If the advice from the Employee Health Physician is that the staff member may qualify for ill health retirement, an application will be made to the NHS Pensions Agency. The NHS Pensions Agency s medical advisors will assess the medical evidence and confirm whether or not they are permanently incapable of either carrying out their present NHS duties or doing any regular work. The decision is not made by this Trust. Further information is available from the NHS Pensions Agency, Workforce Business Partner or HR Advisor Retirement gifts Employees who retire and meet certain criteria can request a retirement gift that will be provided in the form of gift vouchers. The retirement gifts are provided by the Trust s Charitable Funds and are subject to sufficient funds being available. See the Retirement Gift Guidelines on the Trust intranet Retirement parties There is no budget for retirement parties and Trust budgets must not be used to fund them. Page 12 of 19

13 5.13 Exit questionnaires and interviews 6. Consultation The Trust encourages all staff to complete an Exit interview questionnaire when they leave, to provide a better understanding of how the retention of staff could be improved. The questionnaire is available on the Trust intranet and staff will be directed to it when they submit their termination form. The following stakeholders were consulted in the creation of this policy and comments incorporated as appropriate. Director of Human Resources and Organisational Development Head of Organisational Development Head of Employee Relations Head of Equality and Diversity Head of Employee Health Services Payroll and Pensions Manager Workforce Business Partners Staff (trade union) representatives HR Advisors HR Service Delivery Manager Strategic Partnership (Capita) Deputy Chief Nurse & Director of Patient Experience Deputy Chief Nurse & Director of Patient Safety Managers, e.g. Divisional Directors of Operations, CBU managers, and members of the Finance, Quality and Resilience teams. 7. Approval And Ratification Process The initial draft of this procedural document was sent to the HR Policy Group on the 1 February The content of the final version was agreed with staff representatives electronically on 29 February The monitoring and auditing compliance section was added and agreed with staff representatives at the HR Policy Group meeting on 6 June The PRG approved the policy at its meeting of the 12 th July Page 13 of 19

14 8. Dissemination And Implementation This document will be placed on the intranet by the Quality and Learning Division (QLD). The QLD team will provide a reference number for the policy. It will therefore be available to all staff via the CLCH NHS Trust intranet. Furthermore the document will be circulated by the Policy, Projects and Engagement Lead to managers who will be required to cascade the information to members of their teams and to confirm receipt of the procedure and destruction of previous procedures/policies which this supersedes. Managers will ensure that all staff are briefed on its contents and on what it means for them. 9. Archiving The QLD will undertake the archiving arrangements. 10. Training None required. 11. Monitoring and Auditing Compliance with the Procedural Document Exit questionnaires will be analysed by the Head of Organisational Development and reported upon on a 6-monthly basis. The report will be shared with the divisions and reviewed as part of the People Strategy at the Workforce Committee. A combination of workforce leavers and starters reports, exit questionnaires and soft intelligence from the Workforce Business Partners and Advisors will be used to provide a rough indication as to whether or not staff may be using flexible retirement options. The Head of Employee Relations will provide a report annually for the Workforce Committee. 12. Review Arrangements This document will be reviewed in 2½ years time, in December It will be reviewed by the person with the lead for HR policies. Page 14 of 19

15 13. Associated Documentation Equality and Diversity Staff Policy Flexible Working Policy 14. References Employment Rights Act 1996 Equality Act 2010 Employment Equality (Repeal of Retirement Age Provisions) Regulations 2011 NHS Pensions Agency 15. Appendices Appendix A: Retirement process for employees (flowchart) Appendix B: Pre-retirement support and advice Appendix C: Equality impact assessment pro forma Page 15 of 19

16 Appendix A: Retirement process for employees Planning for retirement can begin years in advance. A Planning for your retirement session is available through the Trust for employees within 5 years of retirement. Seek advice to find out your options. Advice sources include, for example, independent financial advisor; NHS Pensions Agency; private pension provider; Pensions Advisory Service. Consider your options and what would work for you, including flexible retirement. e.g. retire completely; retire and return to work; step down; wind down; draw down; late retirement enhancement; early reduction buy out. Discuss what you would like to do with your manager and, where appropriate, what would work for you as well as the service. When your decision is made, write to your manager confirming your decision and your manager should write back confirming receipt. Complete and submit appropriate HR e-form (should be submitted at least 4 months before retirement date if member of NHS Pension Scheme). Page 16 of 19

17 Appendix B: Pre-retirement support and advice The following list contains examples of where staff may be able to obtain support and/or advice when thinking about, or planning for, retirement. It is now exhaustive and staff may choose to obtain advice from elsewhere. if a member of one of the NHS Pension Schemes, the employee can contact the NHS Pensions Agency or the Pensions Officer in the Payroll Department; an employee s pension provider; independent financial advisor;. the Pensions Advisory Service which provides free information and advice about State Pensions, company, personal, stakeholder or occupational pensions ( Pension Wise, a free and impartial government service that provides guidance on defined contribution pensions. AgeUK provides information and advice to help people plan for retirement and better understand pensions and annuities. The Money Advice Service was set up by the government and provides free and impartial money advice, e.g. saving and investing; pensions and retirement; debt and borrowing.. The Trust s Flexible Working Policy provides some information on flexible retirement options. More information is available on the NHS Employers website Page 17 of 19

18 Appendix C: EQUALITIES IMPACT ASSESSMENT PRO FORMA Equality Analysis for Policies Screening form CLCH as a public authority has a legal requirement to analyse the impact of the policy on the protected characteristics of staff and patients. This helps us to check if there is a negative impact, how we can reduce that impact. Does the policy affect groups of people based upon their protected characteristic? Think about the delivery of the procedural document and how it will be applied. 1. Protected characteristic Positive impact Neutral Impact Negative Impact Reason for impact and action required. People of different ages (e.g. Children, young or older people). X Different options planning People of different religions / beliefs X People with disabilities (physical, sensory or learning). X This policy works in favour of ill health retirement People from different ethnic groups X Men or women X Transgendered people X People who are gay, lesbian, and bi-sexual X Partner benefits Refugees and asylum seekers X 2 Please describe engagement and consultation process and the key feedback. E.g. with teams, unions. Page 18 of 19

19 3. If there are negative impacts upon people s protected characteristics. Does the policy in its current form need a full Equality Analysis Assessment to be completed? N/A 4. Have you signed this off with the Equality and Diversity team? Yes Signed for team / working group: Name: Liz Lubbock Date: 19 January 2016 Signed by Equality and Diversity team: Name: Melissa Berry Date: 19 January 2016 For further guidance contact Melissa.berry@clch.nhs.uk Page 19 of 19