Retirement Policy Who Should Read This Policy Target Audience All Trust Staff Version 1.0 October 2015
Ref. Contents Page 1.0 Introduction 4 2.0 Purpose 4 3.0 Objectives 4 4.0 Process 4 4.1 Retirement Options 4 4.2 Retirement Procedure 4 4.3 Flexible Retirement Options 7 4.4 Retirement Presentations and Gifts 7 5.0 Procedures connected to this policy 7 6.0 Links to Relevant Legislation 7 6.1 Links to Relevant National Standards 7 6.2 Links to Other Key Policy/s 8 6.3 References 8 7.0 Roles and Responsibilities for this policy 10 8.0 Training 10 9.0 Equality Impact Assessment 11 10.0 Data Protection Act and Freedom of Information Act 11 11.0 Monitoring policy s effectiveness 11 Appendices 1.0 Application for Retirement Gift 12 Version 1.0 October 2015 2
Explanation of terms used in this policy Normal pension age - The normal pension age is the age that you can retire from NHS employment and have your pension paid without reduction or enhancement. The actual age that applies to you will depend on which section of the Scheme you are in and your status. The differences for each type of member are described below Minimum pension age - The earliest age that you can draw your pension is known as the minimum pension age Version 1.0 October 2015 3
1.0 Introduction The Trust values the loyalty and commitment given to the NHS by members of its employees and believes that support should be available for all employees retiring from the service to enable them to cope with this transition. This policy provides guidance for both managers and employees on retirement and aims to support the Trust to meet service needs, to support the delivery of high quality clinical services, and ensure the Trust is compliant with employment legislation. 2.0 Purpose This policy applies to all employees directly employed by the Trust, whether full-time or part-time, permanent or fixed-term. The policy does not apply to individuals employed via the Trust Bank, agencies or other contractors. Issues relating to retirement and pension arrangements for these individuals should be referred to the appropriate employer. In implementing this policy, managers must ensure that all employees are treated fairly and within the provisions and spirit of the Trust s Play Fair Equality Trust Strategy. 3.0 Objectives The Trust recognises the value of the knowledge, experience and skills of all employees and the contribution flexible retirement can make in helping the Trust retain employees and at the same time match demand for skills with supply. This policy sets out the Trust s approach to retirement and details a number of flexible approaches to retirement that may be of interest to staff. The Trust supports good practice and ensures compliance with the Equality Act 2010, and will apply this within the constraints of the NHS Pension Scheme rules. 4.0 Process 4.1 Retirement Options This section only offers an overview of available NHS pension schemes. A pension booklet is available on the NHS Pension website please refer to this link to read the most up-to-date information for the relevant pension scheme: http://www.nhsbsa.nhs.uk/pensions 4.1.1 1995 NHS Pension Scheme (Amended 2008) The 1995 Section of the Scheme closed to new members with effect from 1 April 2008. If you were an active member of the Scheme on 31 March and 1 April 2008 you may remain in this Section of the Scheme. 4.1.1.1 Normal Pension Age under this Scheme The 1995 Section s normal pension age is 60. If you work beyond age 60 your pension will be paid when you retire. Please refer to the NHS pension website for further details. 4.1.1.2 Flexible retirement The 1995 Section of the scheme allows you to retire and take your pension between age 55 (50 for some members) and 75. You can choose the time that suits you best. Your benefits will be reduced if they are paid before your normal pension age. There is also a facility to protect your pension if you wish to step down to a less demanding job. Version 1.0 October 2015 4
4.1.2 2008 NHS Pension Scheme All new eligible NHS workers from 1 April 2008 will join the 2008 Section of the Scheme. 4.1.2.1 Normal Pension Age under this Scheme The 2008 Section s normal pension age is 65. If you work beyond age 65 your pension will be paid when you retire and it will be increased because it is being paid later. 4.1.2.2 Flexible retirement The 2008 Section of the Scheme has been designed to provide a great deal of flexibility around retirement. You can choose to retire between age 55 and 75 but the benefits would be reduced if they are paid before your 65th birthday. 4.1.3 NEST (National Employment Savings Trust) With effect from 1st May 2013, under the Government s Pension Reforms the Trust were required to Auto-Enrol staff who were non-eligible for membership in the NHS Pension Scheme into an alternative pension scheme provided they meet certain criteria. 4.2 Retirement Procedure 4.2.1 Members of the NHS Pension Schemes only On request from the employee, the Payroll Officer can give an estimate of probable benefits receivable. Lump sums are due on the first day of pensionable retirement, and the first payment of pension is normally made in the month after the month of retirement provided papers are submitted at the appropriate time. Pension has up to a calendar month to pay the lump sum. Any queries regarding these payments should be addressed to the Payroll Officer. All outstanding monies, including any accrued holiday pay will be paid shortly after the leaving date, usually the next pay day; Payroll will notify the NHS Pensions Agency where these will affect the employee s NHS pension. When a member of the NHS Pension Scheme is intending to retire in the near future, Managers should advise the employee to contact the Payroll Officer in Pay Services at least 5 months prior to the proposed date of retirement. Employees intending to retire must give written contractual notice in accordance with their contract of employment (as outlined below) to their line manager. The below table gives the pay band notice period required from the employee: Bands 1-6 period of notice Band 7 period of notice Band 8-9 period of notice 4 weeks notice of termination irrespective of service 8 weeks notice of termination irrespective of service 12 weeks notice of termination irrespective of service It is recommended that a minimum of 5 months written notice is given to their line manager so that the necessary pension arrangements can be made. Upon receipt of the resignation letter, the manager will write to the employee acknowledging their wish to retire. The manager will also be responsible for notifying the Human Resources Information System (HRIS) Department of the date of termination via the Termination of Contract form and confirm any outstanding annual leave (a copy must be sent to the Payroll Department). Version 1.0 October 2015 5
The HRIS team will process all the necessary paperwork for terminating the employee s employment and, in conjunction with the Payroll Department, will terminate employment and arrange to make any outstanding payments. On receipt of the termination form a Retirement Pack will be sent to the employee. The Retirement Pack contains a covering letter with full instructions, Retirement Guide, AW8 Retirement Form and Census Form. For all retirements the NHS Pensions Agency require the completed application form to be received at the NHS Pensions Agency at least 3 months prior to the date of when pension payments will be received, which is why it is recommended that the relevant forms are requested from the Pensions Manager at least 5 months prior to the proposed retirement date. The Payroll Officer will send the application forms to the individual. On completion (of parts 7 14 inclusive) these forms are to be returned to the Payroll Officer along with original relevant certificates. If preferred, the certificates can be copied and verified by Line Managers by writing clearly on the copies; I have seen the original document and this is a true copy of the original, signing and printing their name and position, together with the Trust address and the date. The Payroll Officer will then collate the necessary information required and complete the relevant section on the form and process electronically to the Pensions Agency, where the individual s pension is calculated. The employee will then not normally receive anything until 10-14 days before their Retirement Date. They will then receive a letter from NHS Pensions to tell them their Lump Sum and Pension figures. If they do not receive anything 10-14 days before then they should contact the Payroll Officer. 4.2.2 NEST Scheme members NEST scheme members will be able to access the Retirement Toolkit available on the NEST website www.nestpensions.org.uk which will be available for up to six months before their intention to retire. Members need to inform NEST when they plan to draw their pension to enable them to invest in what NEST believe is the most appropriate way for the member. 4.2.3 Non NHS Pension Scheme members Employees intending to retire are asked to give written notice in accordance with their contract of employment (as outlined below) to their line manager. The below table gives the pay band notice period required from the employee: Bands 1-6 period of notice Band 7 period of notice Band 8-9 period of notice 4 weeks notice of termination irrespective of service 8 weeks notice of termination irrespective of service 12 weeks notice of termination irrespective of service Upon receipt of the resignation letter, the manager will write to the employee acknowledging their wish to retire. The manager will also be responsible for notifying the Human Resources Information System (HRIS) Department of the date of termination via the Termination of Contract form and confirm any outstanding annual leave. Version 1.0 October 2015 6
The HRIS team will process all the necessary paperwork for terminating the employee s employment and, in conjunction with the Payroll Department, will terminate employment and arrange to make any outstanding payments. 4.3 Flexible Retirement Options 4.3.1 Request to Wind down, Step Down, Draw Down 4.3.1.1 Wind Down As an alternative to retiring, a member of staff can discuss with their line manager an option of working fewer days/hours in their current post. Members of staff who take this option will continue to build up pension entitlement and as pensions for part- time staff are calculated on full time equivalent salary, this will not reduce the annual salary on which the pension is calculated. Staff who defer retirement and work part-time will continue to build their pension entitlement. Staff will only be paid for the hours they work. 4.3.1.2 Step Down Retirement can often be considered if the pressures of the role make retirement a more attractive option. The step down option enables staff to step down into a less demanding job on lower pay yet still make good use of the skills and experience an individual has. This option will allow the pension already earned before the step down to be frozen. Staff would then start a second pension based on the step down pay. At retirement both pensions will be added together. The key factor with step down is that there is a suitable role to step-down into. Please note pay protection will not apply. 4.3.1.3 Draw down If you reduce your pensionable pay by at least 10% and you have reached the minimum pension age of 55 you may partially retire and take some of your benefits. You can take a minimum of 20% (or any minimum amount set by HM Revenue and Customs) and a maximum of 80% of your own pension entitlement and continue to build up future membership. The benefits would be reduced if they are paid before your 65th birthday. Your pensionable pay must remain reduced for at least a year otherwise you will cease to be eligible for the pension that you have taken. You can draw down your benefits twice before retiring completely. NHS Pension Scheme / Non NHS Pension Scheme / NEST members who wish to access one of the flexible retirement options are advised to apply in accordance with the Trust s Flexible Working Policy. 4.3.2 Request to continue working after claiming NHS Pension Employees wishing to continue working after receiving their NHS pension, need to complete a Flexible Working Application Form in accordance with the Trust s Flexible Working Policy and submit to their line Manager no later than 5 months before the date of retirement. The decision whether to agree to such a request will be made in accordance with the provisions documented in the Trust s Flexible Working Policy. 4.4 Retirement Presentations and Gifts In recognition of service on retirement, the Trust will provide a gift to staff retiring based on length of NHS service. Version 1.0 October 2015 7
To qualify for an award the staff member must have completed a minimum of 10 years continuous NHS service and the value of the gift may be based on NHS service as follows: 10-14 years service = 50 15-19 years service = 75 20-24 years service = 100 25 years service and over = 150 Applications for funding the gift should be made on behalf of the employee by their immediate Manager who is responsible for verification of NHS Service (see Appendix 1). An award must be in the form of a cheque and will be charged to the appropriate department budget. It is the Manager s responsibility to make arrangements for purchasing the gift and any presentations, and to send notification to the Chief Executive. 5.0 Procedures connected to this Policy There are no standard operating procedures connected to this policy. 6.0 Links to Relevant Legislation The Equality Act 2010 The Equality Act came into force on 1 October 2010 and brought together over 116 separate pieces of legislation into one single Act to provide a legal framework to protect the rights of individuals and advance equality of opportunity for all. The Act simplifies, strengthens and harmonizes the current legislation to provide a new discrimination law which protects individuals from unfair treatment and promotes a fair and more equal society. 6.1 Links to Relevant National Standards There are no links to national standards. 6.2 Links to other key policy/s Flexible Working Policy This procedure has been developed to establish guidance for all staff on the process to be followed in applying for flexible working arrangements, in line with the Trust's Equal Opportunities Policy, Worklife Balance Policy, Human Resources Strategy, NHS Whitely Council Regulations and subsequent legislation in order to bring equality and diversity to the forefront of the Trust. 6.3 References NHS Pensions www.nhsbsa.nhs.uk/pensions NHS pension schemes http://www.nhsbsa.nhs.uk/pensions/documents/pensions/sd_guide_- _Online_(V10)_04.2013.pdf The NHS Employers Website provides further information and resources on retirement Options www.nhsemployers.org Version 1.0 October 2015 8
Agenda for Change Terms and conditions Handbook (2013). http://www.nhsemployers.org/~/media/employers/documents/pay%20and%20rew ard/afc_tc_of_service_handbook_fb.pdf ACAS Retirement Rights www.acas.org.uk Version 1.0 October 2015 9
7.0 Roles and Responsibilities for this Policy Retirement Policy Title Role Responsibilities Director of workforce & Organisational Development Workforce Development Group Head of Workforce Human Resources Department Line Managers Executive Lead Responsible Implementation Lead Guidance and Support Operational - Lead responsibility for the implementation of this policy - Allocation of resources to support the implementation of this policy - Any serious concerns regarding the implementation of this policy are brought to the attention of the Board of Directors - Oversee the implementation of a systematic and consistent approach - Approve all policies and procedures that relate to their subject matter or area of practice - Provide exception and progress reports to the Quality and Safety Steering Group - Ensure that this policy is applied fairly to all staff and continually review it to ensure it accurately reflects legislation and best practice in relation to Retirement - Support, if required, the employee and Manager in the application of this policy - Responsible for distributing and communicating this policy to employees and managers and will take measures to actively enforce it - Responsible for the equitable implementation of this policy and for ensuring that all employees are aware of their responsibilities under it - Ensure that they are familiar with this policy and for explaining the policy to their staff - Processing all retirement requests and associated payroll documentation in a timely manner - Bring any mutually beneficial improvements to this policy to the attention of the Head of Workforce Employees Adherence - Observe the principles of the policy and where appropriate follow the stated application processes 8.0 Training What aspect(s) of this policy will require staff training? Which staff groups require this training? Is this training covered in the Trust s Mandatory and Risk Management Training Needs Analysis document? None N/A No, however employees can contact Pensions Services for advice on their pension and discuss options with their line manager If no, how will the training be delivered? Who will deliver the training? How often will staff require training N/A N/A N/A N/A Who will ensure and monitor that staff have this training? Version 1.0 October 2015 10
9.0 Equality Impact Assessment Black Country Partnership NHS Foundation Trust is committed to ensuring that the way we provide services and the way we recruit and treat staff reflects individual needs, promotes equality and does not discriminate unfairly against any particular individual or group. The Equality Impact Assessment for this policy has been completed and is readily available on the Intranet. If you require this policy in a different format e.g. larger print, Braille, different languages or audio tape, please contact the Equality & Diversity Team on Ext. 8067 or email EqualityImpact.assessment@bcpft.nhs.uk 10.0 Data Protection and Freedom of Information This statement reflects legal requirements incorporated within the Data Protection Act and Freedom of Information Act that apply to staff who work within the public sector. All staff have a responsibility to ensure that they do not disclose information about the Trust s activities in respect of service users in its care to unauthorised individuals. This responsibility applies whether you are currently employed or after your employment ends and in certain aspects of your personal life e.g. use of social networking sites etc. The Trust seeks to ensure a high level of transparency in all its business activities but reserves the right not to disclose information where relevant legislation applies. 11.0 Monitoring this policy is working in practice What key elements will be monitored? (measurable policy objectives) Where described in policy? How will they be monitored? (method + sample size) Who will undertake this monitoring? How Frequently? Group/Committee that will receive and review results Group/Committee to ensure actions are completed Evidence this has happened Termination reasons and answers within the Exit questionnaire 4.2 Audit of termination contract forms and Exit questionnaires Human Resourses Department Quarterly Workforce Development Group Workforce Development Group Completed action plan signed off / minutes of meeting Version 1.0 October 2015 11
Appendix 1 Application for Retirement Gift Eligibility: Employees who have been employed by the NHS for 10 years or more and who are retiring from ALL employments at age 55 or more. Such service need not be consecutive. Surname:.. First names: (Please underline which name(s) should be written on the Retirement Certificate) Personal number:.. Date of Birth:. Date of Retirement: Job Title: Department: Details of Full Service History (To enable Pay Services to calculate the value of the gift) Dates of Service NHS employer Additional Details can be attached on separate sheet if necessary Name of Manager submitting request: Ext no.. NOTE: Pay Services will contact the above manager with details of the amount of the award. An award must be in the form of cheque and will be charged to the appropriate department budget. Pay Services use only: Cheque sent to Manager: (Date) Certificate sent to Manager: (Date) PLEASE FORWARD THIS FORM TO PAY SERVICES DEPARTMENT Version 1.0 October 2015 12
Policy Details Title of Policy Unique Identifier for this policy State if policy is New or Revised Retirement Policy BCPFT- HR-POL-07 New Previous Policy Title where applicable Policy Category Clinical, HR, H&S, Infection Control etc. Executive Director whose portfolio this policy comes under Policy Lead/Author Job titles only Committee/Group responsible for the approval of this policy Month/year consultation process completed * N/A Human Resources Director of Workforce & Organisational Development Head of Workforce Workforce Development Group January 2015 Month/year policy approved March 2015 Month/year policy ratified and issued October 2015 Next review date October 2018 Implementation Plan completed * Equality Impact Assessment completed * Previous version(s) archived * Disclosure status Key Words for this policy Yes Yes Yes B can be disclosed to patients and the public flexible retirement, pension, age, wind down, step down, draw down * For more information on the consultation process, implementation plan, equality impact assessment, or archiving arrangements, please contact Corporate Governance Review and Amendment History Version Date Details of Change V1.0 Oct 2015 New policy for BCPFT, alignment of policies following TCS Version 1.0 October 2015 13