Pension Policy Statement

Transcription

1 Reference: HR001 Document Type: Status of Document: Policy Final Version: 3.0 Date Approved: 20 th October 2015 Approved By: Chief HR & Corporate Services Officer Publication Date: 20 th October 2015 Review Date 20 th October 2016 Policy Owner Applies to: Document Location: Publication: HR Manager All staff in LGPS Sharepoint/EDRMS HR site Internal & External DOCUMENT STATEMENT: All Translink Group Corporate Procedural Documentation (policies, procedures and guidelines) should be consistent in terms of development, approval, implementation, communication, control and review in line with these guidelines. Do you need to print this document? If yes, please consider the environment; print double-sided copies and print only those pages you need using the Page Range in Print Properties. Page 1 of 21

2 Version Control Record Policy Owner: Main Contributors/coauthors: Executive Sponsor: Version Reviewed Reviewed by / Consultation Sought from 2.1 HR Services Manager, HR Business Partner (Bus) HR Manager HR Manager, HR Services Manager Chief HR & Corporate Services Officer Date of Consultation Comments Section 6 Flexible Retirement information section amended to more logical sequence 2.2 HR Services Manager/HR Managers Inclusion in Scope for Translink reserving the right to conduct a full investigation and request further information before making final determination related to early retirement on compassionate grounds Section 3.1 on Exceptional Circumstances amended to include a definition of severe financial hardship and what evidence is required for this Section 5, para 1: Committee amended to Company Section 6 on Flexible Retirement amended to include section outlining how members with 2002 and 2009 membership may draw benefits Section 7 on Shared Cost AVC s abbreviated to SCAVC 2.3 HR Services Manager Section on Reg 9 removed as there is no longer a discretion contained within the regulations for this. It was removed to ensure there was no barrier to joining the Scheme to comply with automatic enrolment legislation. Page 2 of 21

3 2.4 HR Services Manager Section 6.1 amended to include bullet point 4 which refers to a time period of less than 1 year in certain situations Section 6.1 amended to include bullet point 5 which refers to an end date for flexible retirement being agreed in certain situations 2.5 Elliott Duffy Garrett Solicitors Amended wording in Section 6.1 regarding provision of end date 2.6 HR Business Partner (Bus), ER Manager, HR Manager, HR Advisor (Bus), HR Advisor (Rail) HR Advisor temp (Rail), 2.7 Elliott Duffy Garrett Solicitors No changes recommended Legal advice obtained in relation to wording in Section 6.1 regarding the employee providing an end date and contractual notice, and the varying of such an end date with agreement. 2.8 HR Services Manager/HR Manager/Director HR & OD Removed bullet point 4, Section 6.1 which stated that applicants must intend to remain in the new post for a minimum of 1 year. 2.9 HR Services Manager/HR Manager Removed part of section 2 in relation to consultation Unions and DRD Page 3 of 21

4 2.10 HR Manager, HR Services Manager, Mercers, Burges Salmon, Chief HR & Corporate Services Officer, Chief Finance Officer Amended policy owner to HR Manager. Amended title of Director of HR & OD to Chief HR and Corporate Services Officer Made total review of policy document based on the LGPS Scheme Regulations (NI) 2014 which were introduced in April NILGOSC Minor typo s amended Amended to take account of the revised Regulations. Suggested that we amend 3 rd last bullet in flexible retirement policy to say benefits are paid before normal pension age instead of age 65, as this only applies to pre-1 April Amendment to final bullet in flexible retirement policy to say LGS2 optout forms to be returned to Translink. This is a controlled document. Whilst this document may be printed, the electronic version is maintained within the Corporate Records Centre within EDRMS/Sharepoint by the Policy Owner. Page 4 of 21

5 1. Introduction The words Translink Company and/or the Group refer to all corporate entities under the ownership of the Northern Ireland Transport Holding Company (NITHC). This includes the parent company and each subsidiary either individually or taken together as a group. Translink is required to formulate, publish and keep under review a written policy statement on certain discretions in accordance with: Local Government Pension Scheme Regulations (NI) 2014 Local Government Pension Scheme (Amendment and Transitional Provisions) Regulations (NI) 2014 Local Government Pension Scheme (Administration) Regulations (NI) in respect of leavers between 1 April 2009 and 31 March 2015 and Local Government Pension Scheme Regulations (NI) in respect of leavers between 1 February 2003 and 31 March 2009 In addition, Translink is also Recommended to formulate, publish and keep under review a written policy statement on one discretion under the Local Government Pension Scheme Regulations (NI) in respect of leavers before 1 February 2003; Required to formulate, publish and keep under review a written policy statement on certain discretions in accordance with Regulation 6 of the Local Government (Early Termination of Employment) (Discretionary Compensation) Regulations (NI) 2007, effective from 1 October 2006; and Required to formulate, publish and keep under review a written Statement of Policy on certain discretions in accordance with Regulation 25 of the Local Government (Early Termination of Employment) (Discretionary Compensation) Regulations (NI) 2003, operative from 24 March 2003 for terminations of employment on redundancy or efficiency grounds that occurred prior to 1 April Scope In formulating this Policy Statement Translink has ensured that its discretionary powers: Are exercised reasonably Will not be used for ulterior motive Will be used with regard to all relevant factors Will be duly recorded when used This Policy Statement has been prepared following consultation with: The NILGOSC Page 5 of 21

6 Mercers Burgess Salmon In applying this Policy Statement Translink confirms that its discretions will be applied reasonably, will not be fettered and will be used when necessary to assist in attracting and retaining staff and to compensate employees who leave. Translink reserves the right to conduct a full investigation and request further information into any request under the pension scheme regulations before making a final determination related to early retirement on compassionate grounds. Decisions under this policy will be taken by the Chief HR & Corporate Services Officer and will be subject to review by the Executive Committee. Throughout this policy statement, and unless otherwise stated, employee should also be taken to mean an active LGPS member; and Translink should be considered to be the employer. Page 6 of 21

7 3. Employers Discretions Translink s Statement sets out its policy in respect of the following: Discretions to be exercised Page No. On and after 1 April 2015 under the LGPS Regulations (NI) 2014 in relation to active scheme members and members who cease active membership after 31 March Power to grant additional annual pension 2. Contribute towards the costs of purchasing additional pension 3. Flexible retirement Year Rule for members voluntarily drawing benefits 5. Waiving reduction on benefits which a member voluntarily draws before normal pension age 6. Shared Cost Annual Voluntary Contributions 7. Aggregating deferred benefits 8. Determining contribution rates for employees 9. Assumed Pensionable Pay (APP) and inclusion of regular lump sum payments On and after 1 April 2015 under the LGPS Regulations in relation to scheme members who ceased active membership between 1 April 2009 and 31 March Early payment of deferred pension 11. Waiving reduction to deferred benefits 12. Awarding additional membership On and after 1 April 2015 under the LGPS Regulations in relation to scheme members who ceased active membership between 1 February 2003 and 31 March Early payment of benefits for deferred members 14. Waiving reduction to deferred benefits On and after 1 April 2015 under the LGPS Regulations in relation to scheme members who ceased active membership before 1 February Early payment of deferred benefits 17 Under the Local Government (Early Termination of Employment) (Discretionary Compensation) Regulations (Northern Ireland) Redundancy payment 17. Enhanced compensation Page 7 of 21

8 Discretions to be exercised on and after 1 April 2015 under the LGPS Regulations (NI) 2014 in relation to active scheme members and members who cease active membership after 31 March Discretion Power to grant extra annual pension (LGPS 2014, Regulation 32) Whether, at full cost to Translink, to grant extra annual pension of up to 6,500 (figure at 1 April 2015) to an active scheme member or within six months of leaving to a member who is dismissed by reason of redundancy or business efficiency or whose employment is terminated by mutual consent on the grounds of business efficiency. Translink will not make use of the discretion to grant extra annual pension of up to 6,500 (figure at 1 April 2015) to an active scheme member or within 6 months of leaving to a member who is dismissed by reason of redundancy or business efficiency or whose employment is terminated by mutual consent on the grounds of business efficiency except in exceptional circumstances where Translink considers it is in its financial or operational interests to do so. Each case will be considered on the merits of the financial and / or operational business case put forward. 2. Discretion Employer discretion to contribute towards the costs of purchasing extra pension (LGPS 2014, Regulation 18) Whether, where an employee wishes to purchase extra annual pension of up to 6,500 (figure at 1 April 2015) by making Additional Pension Contributions (APCs), Translink will voluntarily contribute towards the cost of purchasing that extra pension via a Shared Cost Additional Pension Contribution (SCAPC). Translink will only voluntarily contribute towards the cost of purchasing extra pension via a Shared Cost Additional Pension Contribution (SCAPC) in the following situation: Page 8 of 21

9 Where: - an active scheme member returns from a period of authorised leave of absence, and - the member does not, within 30 days of returning from the leave of absence, make an election to buy-back the amount of pension lost during that period of leave of absence, and - the member subsequently makes an election to do so, and - the election is made no more than 6 months after the member returns from the period of leave of absence or such longer period as Translink may deem reasonable in any individual case. A decision on whether the member meets the above criteria will be taken by the Chief HR & Corporate Services Officer and, where it is agreed that the conditions are met, Translink will contribute 2/3rds of the cost of buying back the lost pension via a SCAPC. 3. Discretion Flexible retirement (LGPS 2014, Regulation 31 and LGPS 2014 Transitional Regs, Regulation 10) Whether to pay flexible retirement benefits for staff aged 55 or over who, with the agreement of Translink, reduce their working hours or grade and, if so, as part of the agreement: whether, in addition to the benefits the employee has accrued prior to 1 April 2009 (which he/she must draw if flexible retirement is agreed), to permit him/her to choose to draw all, part or none of the pension benefits they accrued after 31 March 2009 and before 1 April 2015, and/or all, part or none of the pension benefits they accrued after 31 March 2015, and whether to waive, in whole or in part, any actuarial reduction which would otherwise be applied to the benefits taken on flexible retirement before Normal Pension Age (NPA). Translink will allow employees who are aged 55 or over, flexible retirement with early payment of total accrued benefits prior to April 2009 provided they meet the terms of its Flexible Retirement Policy (as amended from time to time). A copy is set out in Section 5 Page 9 of 21

10 below. In addition to the benefits the employee has accrued prior to 1 April 2009, Translink will consider on a case by case basis whether to permit the employee to choose to draw: all, part or none of the pension benefits they accrued after 31 March 2009 and before 1 April 2015, and / or all, part or none of the pension benefits they accrued after 31 March 2015 Cases which have financial implications for the Company will be considered by the Chief HR & Corporate Services Officer. Requests to waive the reduction in benefits in whole or in part, will only be considered in exceptional circumstances on compassionate grounds (in accordance with the criteria specified in section 4 below). Each case will be considered on the merits of the financial and/or operational business case put forward and will require the approval of the Chief HR & Corporate Services Officer. Any strain on fund costs or any cost to waive the reduction in benefits will have to be met by, and paid to the Pension Fund, by Translink. 4. Discretion 85 year rule for members voluntarily drawing benefits (LGPS 2014 Transitional Regs, Schedule 3) Whether, to switch the 85 year rule back on in full for employees who would otherwise be subject to it and who choose to voluntarily draw their benefits on or after age 55 and before age 60. Translink will not agree to switch the 85 year rule on in full where members choose to voluntarily draw their benefits on or after age 55 and before age 60 except in circumstances where Translink considers it is in its financial or operational interests to do so. Each case will be considered on the merits of the financial and/or operational business case put forward, or will be exercised on compassionate grounds in accordance with Section 4. Each application will be reviewed on a case by case basis and will require the approval of the Chief HR & Corporate Services Officer. Page 10 of 21

11 5. Discretion Waiving reduction on benefits which a member voluntarily draws before normal pension age (LGPS 2014, Regulation 31 and LGPS 2014 Transitional Regs, Schedule 3) For staff voluntarily retiring on or after age 55 and before Normal Pension Age (NPA) who elect under regulation 31(5) of the LGPS Regulations (Northern Ireland) 2014 to immediately draw benefits, and for deferred members who elect under regulation 31(5) of the LGPS Regulations (Northern Ireland) 2014 to draw benefits (other than on ill health grounds) on or after age 55 and before NPA, and who: were not members of the LGPS before 1 October 2006 (Group 4 members), whether to: o waive on compassionate grounds, any actuarial reduction that would otherwise be applied to benefits, if any, accrued before 1 April 2015 and/or o waive in whole or in part (on any grounds), any actuarial reduction that would otherwise be applied to benefits accrued after 31 March 2015 were members of the LGPS before 1 October 2006 and will be 60 or more on 31 March 2016 (Group 1 members), whether to: o waive on compassionate grounds, any actuarial reduction that would otherwise be applied to benefits accrued before 1 April 2016 and/or o waive, in whole are in part (on any grounds), any actuarial reduction that would otherwise be applied to benefits accrued after 31 March were members of the LGPS before 1 October 2006 and will not be 60 or more on 31 March 2016 and will not attain age 60 between 1 April 2016 and 31 March 2020 (Group 3 members), whether to: o waive on compassionate grounds, any actuarial reduction that would otherwise be applied to benefits accrued before 1 April 2015 and/or o waive, in whole or in part (on any grounds), any actuarial reduction that would otherwise be applied to benefits accrued after 31 March 2015 were members of the LGPS before 1 October 2006 and will not be 60 or more on 31 March 2016 but will attain age 60 between 1 April 2016 and 31 March 2020 (Group 2 members), whether to: o waive on compassionate grounds, any actuarial reduction that would otherwise be applied to benefits accrued before 1 April 2020, and/or o waive, in whole or in part (on any grounds), any actuarial reduction that would otherwise be applied to benefits accrued after 31 March Translink will not agree: to waive on compassionate grounds any reduction on pre 1 April 2015 benefits for Group 3 or 4 members; on pre 1 April 2016 benefits for Group 1 members; or on pre 1 April 2020 benefits for Group 2 members; and/or Page 11 of 21

12 to waive in whole or in part on any grounds any reduction on post 31 March 2015 benefits for Group 3 or 4 members; on post 31 March 2016 benefits for Group 1 members; or on post 31 March 2020 benefits for Group 2 members. where members choose to voluntarily draw their benefits on or after age 55 and before Normal Retirement Age except in circumstances where Translink considers it is in its financial or operational interests to do so or there are compassionate reasons (in accordance with the criteria specified in section 4) for doing so. Each case will be considered on the merits of the financial and/or operational business case put forward, or will be considered on the merits of the compassionate case put forward, and will require the approval of the Chief HR & Corporate Services Officer including, where the reduction is only to be waved in part, approval for the amount of reduction to be waived. As the employer, Translink will have to meet the cost of the strain on the fund resulting from any waiver in actuarial reduction. 6. Discretion Shared Cost AVC (LGPS 2014, Regulation 19) Whether, how much, and in what circumstances to contribute to a shared-cost Additional Voluntary Contribution (SCAVC) arrangement entered into on or after 1 April 2015 and whether, how much, and in what circumstances to continue to contribute to any shared cost Additional Voluntary Contribution (SCAVC) arrangement entered into before 1 April Translink does not provide a shared-cost AVC scheme at this time. Page 12 of 21

13 7. Discretion Aggregating deferred benefits (LGPS 2014, Regulation 24) Whether to extend the 12 month time limit within which an employee, who has a deferred LGPS benefit in Northern Ireland following the cessation of employment (or cessation of a concurrent employment), may elect not to have the deferred benefits automatically aggregated with their new LGPS employment (or ongoing concurrent LGPS employment) ) if the employee has not made an election to retain separate benefits within 12 months of commencing membership of the LGPS in the new employment (or within 12 months of ceasing the concurrent membership). Translink will only extend the 12 month time limit within which a current employee who has a deferred LGPS benefit in Northern Ireland following the cessation of employment (or cessation of a concurrent employment) may elect not to have the deferred benefits aggregated with their new LGPS employment (or ongoing concurrent LGPS employment): a) where Translink agrees that the available evidence indicates the member had not been informed of the 12 month time limit due to maladministration; b) where Translink agrees that the available evidence indicates the member had made an election within 12 months of joining the LGPS but the election was not received by the Northern Ireland Local Government Officers' Superannuation Committee (e.g. the election form was lost in the post); or c) where the member has pre 1 April 2015 membership and Translink agrees the available evidence indicates that, due to maladministration, the member had not been informed of the implications of having benefits aggregated and would, in consequence, suffer a detriment to their pension benefits (for example, where member s whole-time equivalent pensionable pay on commencing with Translink is, in real terms after allowing for inflation, significantly less than the whole-time equivalent pensionable pay upon which the deferred benefits were calculated). 8. Discretion Determining contribution rates for employees (LGPS 2014, Regulation 11) How the pension contribution band/rate to which an employee is to be allocated on joining the Scheme, and at each subsequent April, will be determined and the circumstances in which (following a material change which affects pensionable pay in the course of a Scheme year (1 April to 31 March) the pension contribution band/rate to which an employee has been allocated will be reviewed. Page 13 of 21

14 Translink has written a separate policy in respect to this discretion. A copy of the Contribution Banding Policy is available from the Payroll Manager. 9. Discretion Assumed Pensionable Pay and inclusion of regular lump sum payments (LGPS 2014, Regulation 23) Whether or not, when calculating assumed pensionable pay (APP) when an employee is: on reduced contractual pay or no pay due to sickness or injury; or absent during ordinary maternity, paternity or adoption leave or during paid additional maternity, shared parental or adoption leave; or absent on reserve forces service leave; or retires with a Tier 1 or Tier 2 ill health pension; or dies in service to include in the calculation the amount of any regular lump sum payment received by the employee in the 12 months preceding the date the absence began or the ill health retirement or death occurred. In assessing Assumed Pensionable Pay (APP) Translink will not, other than in exceptional circumstances, include in the calculation any regular lump sum payments in which case the decision to include the regular lump sum payment will be subject to the approval of the Chief HR & Corporate Services Officer Page 14 of 21

15 Discretions to be exercised on and after 1 April 2015 under the LGPS Regulations in relation to scheme members who ceased active membership between 1 April 2009 and 31 March Discretion Early payment of deferred pension (LGPS 2009, Regulation 30) Whether to grant applications for the early payment of deferred pension benefits on or after age 55 and before age 60 (on grounds other than ill-health). Where a former employee who left the scheme between 1 April 2009 and 31 March 2015 requests early release of deferred benefits on or after age 55 and before age 60 (on grounds other than ill health), approval will only be given on compassionate grounds, taking into account any financial considerations to the Company. Each case will be considered on its merits and will be subject to the approval of the Chief HR & Corporate Services Officer. The benefits payable in such circumstances will be subject to any actuarial reduction applicable under the relevant LGPS Regulations unless Translink agrees to waive any reduction in benefits on compassionate grounds (see below). 11. Discretion Waiving reduction to deferred benefits (LGPS 2009, Regulation 30) Whether, on compassionate grounds, to waive any actuarial reduction that would normally be applied to deferred benefits which are paid before age 65. Requests to waive the reduction in benefits on compassionate grounds will only be considered in exceptional circumstances in accordance with section 4 below. Each case will be considered on its merits and will be subject to the approval of the Chief HR & Corporate Services Officer. Page 15 of 21

16 12. Discretion Awarding additional membership (LGPS 2009, Regulation 12) Whether, within six months of the date of termination, to grant up to a maximum of 10 years extra membership in the pension scheme to an employee whose employment was terminated before 1 April 2015 on the grounds of redundancy or business efficiency. This is a time-limited discretion which will expire on 30 September Translink will not grant extra pension scheme membership to an employee whose employment was terminated before 1 April 2015 on the grounds of redundancy or business efficiency. Discretions to be exercised on and after 1 April 2015 under the LGPS Regulations in relation to scheme members who ceased active membership between 1 February 2003 and 31 March Discretion Early payment of benefits for deferred members (Local Government Pension Scheme Regulations (Northern Ireland) 2002, Reg 33) Whether to grant applications for the early payment of pension benefits on or after age 50 and before age 60 (on grounds other than ill-health). Early payment of benefits for former employees will only be considered for those over age 55 and before age 60 (except for those individuals who are protected members for whom this is age 50) in exceptional circumstances on compassionate grounds in accordance with section 4 below, taking account of any financial considerations to the Company. Each case will be considered on its merits and will be subject to the approval of the Chief HR & Corporate Services Officer. Page 16 of 21

17 14. Discretion Waiving reduction to deferred benefits (Local Government Pension Scheme Regulations (Northern Ireland) 2002, reg 5) Whether, on compassionate grounds, to waive any actuarial reduction that would normally be applied to deferred benefits which are paid before age 65. Requests to waive the reduction in benefits on compassionate grounds will only be considered in exceptional circumstances in accordance with section 4 below, taking account of any financial considerations to the Company. Each case will be considered on its merits and will be subject to the approval of the Chief HR & Corporate Services Officer. Discretions to be exercised on and after 1 April 2015 under the LGPS Regulations in relation to scheme members who ceased active membership before 1 February Discretion Early payment of deferred benefits (Local Government (Superannuation) (Amendment) Regulations (NI) 1975, Reg 4) Whether, with the agreement of NILGOSC (as the Scheme s administering body), to grant applications for the early payment of deferred pension benefits on or after age 50 and before age 65 on compassionate grounds. This policy only applies to deferred members who left the Scheme during the period from 15 August 1975 to 31 January Early payment of benefits for former employees will only be considered for those over age 55 and before age 60 in exceptional circumstances on compassionate grounds in accordance with section 4 below, or where there is no cost to Translink. The cost of exercising this discretion should not place a burden on other scheme beneficiaries and the cost to the Fund will be taken into consideration. Page 17 of 21

18 Translink will only consider early payment of deferred benefits for anyone aged over 50 but less than 55 in exceptional circumstances of proven long-term severe financial hardship and/or compelling compassionate reasons as described in section 4 below. The cost of exercising this discretion should not place a burden on other scheme beneficiaries. The cost to the Fund will be taken into consideration along with an HMRC tax charges or penalties and the risk to the Scheme of losing its registered pension scheme status because of making unauthorised payments. Translink reserves the right to conduct a full investigation and request further information before making a final determination on whether to agree to early payment of deferred benefits. The relevant weight of the factors will depend on the circumstances of each case and all relevant factors will be considered. Each case will be considered on its merits and will be subject to the approval of the Chief HR & Corporate Services Officer. Discretions to be exercised under the Local Government (Early Termination of Employment) (Discretionary Compensation) Regulations (Northern Ireland) Discretion Redundancy payment (LGPS 2007 Regulation 4) Whether to base a redundancy payment on an employee s actual weeks pay where this exceeds the statutory week s pay limit of, currently 490 per week (as at 6 April 2015). An employee whose employment is terminated early due to redundancy or business efficiency will receive a termination payment as outlined in the applicable Redundancy Policy in place at that time. 17. Discretion Enhanced compensation (LGPS 2007 Regulation 5) Whether to make a termination payment (inclusive of any redundancy payment) of up to a maximum of 104 weeks pay to employees whose employment is terminated on the grounds of redundancy or efficiency of the service. Page 18 of 21

19 An employee whose employment is terminated early due to redundancy or business efficiency will receive a termination payment as outlined in the applicable Redundancy Policy in place at that time. 4. Consideration of Requests on Compassionate grounds Each request on compassionate grounds will be considered on its own merits regardless of cost. The main criteria Translink will consider as exceptional circumstances for compassionate grounds are to allow employees or former employees to care for a sick spouse, civil partner, co-habiting partner, parent, child, sibling or other dependant, or on grounds of severe financial hardship. Proven long term severe financial hardship is considered to apply where long-term expenditure on basic living requirements (e.g. food, heat, electricity, rent or mortgage, clothing) exceeds income from all sources and the individual has either no or minimal savings. It is expected that long-term is greater than 12 months. Before exercising this discretion Translink will require evidence including: Full details of the exceptional circumstances of severe financial hardship. Details of all employments held since leaving the Company s employment Details of all income, pensions deferred or in payment and any other benefits receivable including state benefits and crisis loans Details of savings accounts or savings-type insurance policies Copies of bank statements Detailed list of expenditure Medical reports, if appropriate, to support a case of retirement to look after an elderly or infirm spouse, civil partner, co-habiting partner, child, parent, sibling or other dependant Evidence that the member is the sole or main carer 5. Flexible Retirement Policy The company will consider requests for flexible retirement from employees who are considering retirement. This gives employees the option to reduce their hours of work, or the grade in which they work, so as to enable them to adjust gradually to full retirement. This policy may be amended from time to time. Flexible retirement allows members of the NILGOSC Pension Scheme to reduce their hours or the grade in the Company in which they are employed, whilst at the same time take payment of their pension, provided they are aged 55 or over and Page 19 of 21

20 their request is approved by the Company. The Company does not have to agree to requests for flexible retirement and each case will be considered on its own merits taking into account the need to deliver services effectively and efficiently, the financial implications of granting the application and the circumstances of granting each application. The following process applies to employees who wish to apply for flexible retirement: Employees must be willing to either reduce their weekly working hours or transfer to a lower-grade duty (subject to a position being vacant which they are deemed suitable for). Requests must reflect either a minimum reduction of 1 day per week (pro-rata for part-time posts) or a minimum reduction of one full grade. Requests should be made in writing to the line manager, outlining the work pattern they wish to work, e.g. part time term time, 3 days per week, etc, and the date they wish this to take effect. Employees should provide an end date for when their flexible retirement arrangements will cease and their retirement (i.e. the termination of their employment) will take effect. This is a necessary requirement to allow the company to plan for the future based on its business/staffing needs. An appropriate retirement date will be discussed and agreed with each employee on an individual basis. It is envisaged that this requirement will not ordinarily extend to Bus Drivers, where there is an ongoing requirement to fill part-time term time duties. However, in certain situations Bus Drivers may be asked to provide an end date (such as, for example, where there is a surplus of Bus Drivers in respect of part-time term duties and/or where this is required for planning in respect of business / staffing needs). The Line Manager, through HR, will obtain information from NILGOSC in relation to any costs applicable due to agreeing to allow the employee flexible retirement prior to confirming the decision. The Line Manager and the HR Business Partner will consider the change in hours or post on its own merits taking into account the need to deliver services effectively and efficiently, the financial implications of granting the application and the circumstances of granting each application. If there are financial implications to agreeing to the flexible retirement but the application is supported by the Line Manager and the HR Business Partner, the Chief HR & Corporate Services Officer will consider the application. Once a retirement date has been agreed with the employee (subject to the flexible retirement arrangement having been approved), this will be set out in writing, with the employee given formal notice that their retirement will take place on that set date. This formal notice will generally include any period of contractual notice which the employee is required to provide, though the Company reserves the right to require that the employee give due contractual notice prior to their retirement date. A flexible retirement information sheet will be Page 20 of 21

21 sent to the employee which they are required to sign and return to HR, confirming they are happy to proceed with the flexible retirement on the grounds specified in their letter. Once a retirement date has been agreed and the formal written notice referred to above has been given, it will not be possible for this retirement date to be changed except by agreement between the employee and the company. The employee should put any such request in writing, setting out the reasons why they are seeking to alter their retirement date. This will then be considered by the company, who may arrange to meet with the employee in order to discuss the request. The company will consider all such requests on an individual basis but cannot guarantee that they will be granted. Employees will only be allowed one flexible retirement but one further request for flexible retirement will be considered on its own merits and based on the need to deliver services effectively and efficiently together with the financial implications of granting the application. A third request for flexible retirement will not be allowed. This would include any extensions to a period of flexible retirement. Employees considering making a request for flexible retirement should note that if benefits are paid before normal pension age, they are reduced in accordance with guidance issued by the Government Actuary. Details are available on request from NILGOSC. Where flexible retirement is approved, the employee will be paid all accrued annual leave at the time of commencing flexible retirement. The employee will be auto-enrolled back into the LGPS upon taking up flexible retirement but has the option to opt-out by completing LGS2 form and submitting to Translink. Page 21 of 21