Police Staff Retirement Policy Version 2 Greater Manchester Police Date: October 2013
POLICY IMPLEMENTED: October 2013 REVIEW DATE: October 2014 PROCEDURE OWNER:, HR Branch APPROVED BY: Head of HR and ACO Potts ASSOCIATED PROCEDURE: Procedure included PROTECTIVE MARKING: Not Protectively Marked IS THE PROCEDURE New Revised IF REVISED, PLEASE COMPLETE TABLE BELOW VERSION NO DATE SUMMARY OF CHANGES AUTHOR(S) 1 Jan 2011 0.1 18/7/12 Rewritten in Plain English and using the new Force Policy Template. Management and HR guidance removed and separate Toolkits created. All key rights and principles previously agreed remain. 0.2 10/8/12 Amended following comments from Petra 0.3 Aug 12 Includes CD s tracked comments/changes 0.4 Aug 12 Rewritten for Police Staff only 0.5 Sept 12 Includes Unison tracked changes 0.6 Oct 12 0.7 Oct 12 Updated following Unison agreed tracked changes Updated following introduction of Circular 262 new pension provisions 1 Nov 12 Agreed policy with Unison 2 Oct 13 Amended to include return of Agile Working equipment. Also amendments to include comments from Workforce Development Unit for staff on external secondments. Policy & People Policy & People
Table of Contents 1. Introduction and Background... 1 2. Scope... 1 3. Terms and Definitions... 1 4. Roles & Responsibilities... 2 5 Principals... 2 5.1 Normal Retirement.2 5.2 Early retirement from age 55.2 5.3 Flexible retirement..2 5.4 Protected members (85 year rule) 3 5.5 Retiring through Redundancy or Efficiency 3 5.6 Fixed Term contract/ Temporary post...4 5.7 Ill Health Retirement...4 5.8 Retirement Gift 5 5.9 Annual Leave..5 5.10 Pre-retirement Course.5 6 Procedure. 5 6.1 Normal Retirement..5 6.2 Early Retirement from age 55 and Flexible Retirement... 5 6.3 Ill Health Retirement...6 6.4 Agile Working Equipment..6 7. Associated Documents... 7 8. Consultation & Legal Compliance... 7
1. Introduction and Background Policy statement Greater Manchester Police is committed to equal opportunities and recognises the contributions of a diverse workforce, including the skills and experience of older staff. Whilst you can retire from age 60 without approval, there are a number of other retirement options that we ll consider on a case by case basis. Applications are not approved unless they are in our interest and do not have a detrimental impact on finance. We aim to: Treat you fairly, equally and supportively Consider your application in line with the policy Aims The aims of this policy are to: Give you a clear understanding of Retirement Explain the procedure to be followed, so that we can fairly process your request for retirement 2. Scope This policy applies to all Police Staff. 3. Terms and Definitions Normal retirement You choose to retire between age 60 and 75. Early retirement You retire from age 55 with the approval of our Retirement Panel. Flexible retirement. You reduce your hours or move to a lower graded post and receive immediate pension benefits, with the approval of our Retirement Panel. Ill Health retirement Retirement before Normal Retirement age when an Independent Medical practitioner qualified in occupational health, confirms you re no longer medically able to undertake your role, or you re unlikely to work within a reasonable period of time. 1
4. Roles & Responsibilities Responsibility of HR The Head of HR is responsible for developing a Retirement Policy that supports good employee relations and the operational needs of GMP. HR will advise managers on the processes to follow and monitor consistency of applications. Responsibility of Managers Managers are responsible for meeting with staff, having an open discussion and making fair decisions. Responsibility of Workforce Development Unit The Workforce Development Unit will act as management for officers who are externally seconded. Responsibility of Staff You should follow the procedure for submitting retirement applications and ensure you give as much information as possible. 5. Principles 5.1 Normal Retirement The normal retirement age under the Local Government Pension Scheme is 65. You can choose to retire at any time from your 60 th birthday without approval; however, your pension benefits may reduce. You have the right to work and stay in the LGPS until your 75 th birthday. 5.2 Early retirement from age 55 You can apply to retire early from age 55. However, there s a capital cost for us for early payment of pension benefits therefore we ll consider each request on a case by case basis taking into account the reason for the request and the likely financial impact. If approved, your pension will reduce in line with the actuarial reductions calculated on how long it is before you reach age 65. We may protect some or all of your benefits paid early, from reduction, on compassionate grounds. If you joined the scheme before October 2006 you may have some protection from reduction in benefits. (see 85 year rule section). 5.3 Flexible Retirement If you have minimum 3 months service and are aged 55 or over, you can request to reduce your hours or grade, and receive immediate pension payments, even if you remain in employment. We may agree to the release of all your accrued pension benefits prior to 01/04/2008 and some, all or none of your pension benefits accrued post 01/04/2008. 2
If approved, pension benefits may be subject to reduction as set out in the scheme. We ll not waive reductions unless there are exceptional circumstances, and it s in our financial and or operational interest. We will take the following into consideration: Cost to GMP Whether there is any benefit/detriment to GMP The operational and financial effects of reducing hours/grade The impact on other staff (e.g. staff requiring redeployment) The implications/effect on other policies (e.g. recruitment and selection) 5.4 Protected members (85 year rule) If you retire before age 65 your LGPS benefits will be reduced as your pension is likely to paid for longer. However, if you joined the LGPS before 1 October 2006 and would have at least 21 years membership if you d stayed in the scheme to age 65 you ll: a) Have some protection from the reduction in respect of benefits you build up in the scheme to 31 March 2016 if age 60 by then, or b) In any other case, have some protection from the reduction in benefits you build up in the scheme to 31 March 2008, and, if age 60 between 1 April 2016 and 31 March 2020you may have further protection on a sliding scale in respect of benefits built up between 1 April 2008 and 31 March 2020 provided your combined age and membership in whole years would be 85 or more by 31 March 2020. 5.5 Retiring through Redundancy or Efficiency Redundancy If you re 55 or above, and we make you redundant, you re entitled to payment of your pension without reduction. Discretionary Compensation Arrangements Although unusual, we have the provision in exceptional circumstances to pay enhanced redundancy payments or award compensation if we terminate your employment early in the interests of redundancy or efficiency. If you re a member of the LGPS, and where the reason for termination is due to redundancy, we may give you the option for additional membership (detailed below) or an enhanced redundancy payment. If you re not a member of the LGPS, then an enhanced redundancy payment may apply. Enhanced Redundancy Payment You must have at least 2 years service with GMP, but you don t have to be a member of the LGPS. Where approved, we use actual pay to calculate redundancy payments, and the number of weeks statutory redundancy entitlement is double, subject to a max 60 weeks pay inclusive of statutory redundancy pay. 3
You ll not receive enhanced redundancy if we award additional membership of the LGPS. Efficiency In efficiency situations, that don t meet the criteria for redundancy, we may grant additional membership to LGPS members, but no other payments are made. Additional Membership of the LGPS If you re a member of the LGPS and you ve at least 2 years service with us we may award you additional LGPS membership. This will be the shortest of: 20% of pensionable service, up to a maximum of 6 2/3 years or; Service equal to the total membership you would have had, had you continued in the LGPS until age 65. If you worked less than 36.25 hours per week, additional membership will be on a pro-rata basis in accordance with hours worked at the time your employment ceases. 5.6 Fixed Term Contract/Temporary Post If you re a fixed term worker and we terminate your fixed term employment in line with the terms of your contract of employment or you re a permanent member of staff whose chosen to transfer to a temporary post we ll not pay a discretionary compensation payment, but we may pay statutory redundancy. 5.7 Ill Health Retirement If you satisfy the ill health conditions, and you ve been a member of the LGPS for 3 months, you could be entitled to an ill health pension benefit as follows. Tier 1: No reasonable prospect of gainful employment before age 65, benefit based on membership built up plus membership that you d have built up by age 65. Tier 2: Not capable of gainful employment within 3 years of leaving but you may be capable of working prior to age 65; benefits based on membership built up plus 25% of membership that would ve built up by age 65. Tier 3: Capable of gainful employment within 3 years of leaving, benefits based on membership already built up and paid for until you start work, or unless suspended following a review after 18 months. We may allow an application for reinstatement of a suspended tier 3 ill health pension on or after age 55 and before age 60 and as a result of a medical opinion stating you are permanently incapable of undertaking any gainful employment. Should your original health condition worsen within 3 years of the suspension of your pension (or before age 65), instead of bringing the suspended 3 tier ill health pension back into payment, we can agree to uplift the pension to tier 2 if in the IRMPs opinion you are not likely to be capable of undertaking gainful employment within three years of your date of leaving. 4
Gainful employment means paid employment of at least 30 hours per week for 12 months. If you retire due to ill health, were a member of the LGPS before 1 st April 2008, and were 45 or over on this date, you ll be given extra membership from the 1997 pension scheme rules, if they are favourable to you. If you re part-time when you leave, any extra membership will be adjusted to reflect your parttime hours. 5.8 Retirement Gift If you ve 20+ years service, you re entitled to a retirement gift to the value of 8 for each full year of service. You can buy your own gift and send us the receipt(s). We will not reimburse cash if you purchase a gift costing less than the value of the entitlement. 5.9 Annual Leave If you leave part way through a leave year we ll calculate your annual leave pro rata for each completed month. You should take all outstanding annual leave before your last day. We ll pay you your outstanding annual leave if you ve been on long term sick. We ll deduct overtaken annual leave from your final salary. 5.10 Pre-retirement Course You may attend a pre retirement course in the last two years before you re due to retire. The course covers financial, lifestyle and career planning. 6. Procedure 6.1 Normal Retirement Complete a Leavers Form (Form 003F), and submit it to your manager. You should provide contractual notice as detailed below: Grades A-F one months notice Grades G-M incl two months notice Above Grade M three months notice If you re on an external secondment contact the Workforce Development Unit who ll act as your GMP management. Forward the form to the Workforce Development Unit group mailbox workforce.development@gmp.police.uk. Your manger will offer you an exit interview, arrange for the departmental/branch commander to approve your last day of service and send it to the HR Branch for processing (see attached leavers flowchart). The HR Branch will notify the Finance Branch and the Pensions Unit. 5
It s important you keep us up to date with contact numbers and any change of address in case you are required to attend court after you have left. 6.2 Early retirement from age 55 and Flexible Retirements Submit an Application for retirement and access to pension for staff who are members of the Local Government Pension Scheme (LGPS) (Form119P) to your manager. Your manager will meet with you to discuss your application. Your manager and members of the Senior Leadership Team will consider the application and make recommendations to the Early Retirement panel. The Early Retirement panel consists of a representative from HR Branch and Finance Branch. The panel will consider: previous requests; Potential costs; If you ve been considered for ill health retirement; Any other relevant evidence. If approved, HR Branch will arrange to process your retirement. Appeal Stage 1. If you re not satisfied with the application of this policy or a decision made in respect of your request, you can appeal in writing to the Head of HR no later than 6 months from the date you were told of the decision. Stage 2. If you re not satisfied with the outcome of the stage 1 appeal, you should write to the Pension Scheme Administering Authority (the Greater Manchester Police Fund, Concord Suite, Manchester Road, Droylsden, M43 6SF.) 6.3 Ill Health Retirement You and your manager may complete an ill health retirement referral form as part of a: Attendance Management meeting Standards, Performance and Attendance meeting Occupational Health meeting e.g. Medical Case conference At your request Once completed, your manager will forward it to the HR Branch for allocation to a Caseworker who ll then forward it to the Force Medical Officer, Occupation Health Unit, for an opinion. The Force Medical Officer will offer his/her opinion to the HR Branch, as to whether a referral to an Independent Registered Medical Practitioner (IRMP) is medically supported, and return the form to the HR Branch Caseworker. HR Branch will decide whether to refer your case to the IRMP to consider your eligibility for ill health retirement. We may require your written consent for your medical records/specialist reports be released upon request from the IRMP. You may be required to undertake a medical appointment with the IRMP during this process. 6
We ll provide support to enable you to remain in work during this process and this will be taken into consideration as part of the decision on whether to approve your ill health retirement application. Upon receipt of the Independent Medical opinion, the Head of HR will decide on the ill health retirement. The HR Branch will keep you up to date during this process and will write to inform you of the decision and determine your last day of service. Appeal Stage 1: Appeal in writing to the HR Branch, providing additional medical information to support your appeal. The HR Branch will review your appeal in line with the process, review additional medical information and send to IRMP for consideration. If there s no additional medical information to support your appeal, and the process was followed correctly, the original decision will stand. Stage 2: If you re not satisfied with the outcome of stage 1, you should appeal in writing to the Pension Scheme Administering Authority (the Greater Manchester Police Fund, Concord Suite, Manchester Road, Droylsden, M43 6SF.) 6.4 Agile Working Equipment You re responsible for any Agile Working equipment that s been assigned to you and this must be returned to the IS Branch via the IS Surgery/HQ before your last day of service. 7. Associated Documents GMP Forms: Form 003F Leavers Form Notification of resignation/retirement/requirement to resign/dismissed/transfer to other force Form 119P Application for retirement and access to pension for staff who are members of the Local Government Pension Scheme (LGPS) Referral IRMP Request for referral to an Independent Registered Medical Practitioner GMP Guidance: Management of Retirement Toolkit Leavers Flowchart 8. Consultation & Legal Compliance 7
8.1 Consultation Department UNISON Comments Detailed consultation has taken place with Unison on all revisions to the Policy and their views have been taken into account. 8.2 Freedom of Information Act (2000) & Data Protection Act (1998) The policy and procedures are compliant with the Acts. 8.3 Equality Act 2010 Due regard has been had to the Equality Act implications. The Retirement Policy is open to all staff which goes further than current legislation requires - the aim is to promote equality of opportunity for all members of staff throughout the Force. 8