NHS Ayrshire & Arran Organisation & Human Resource Development Policy Change Record RETIREMENT POLICY Version Date Reason Author d1a Initial Draft i1a Issued for Review a1 06.09.11 Approved Mary Anne Black REVIEW DATE: Reviewers Name Group/Name(s) Date Policy Review Group Lead Responsibility Mary Anne Black 06.09.11 Approvers Name Role Date APF Last Bi Annual Review Date Last Technical Review Date 06.09.11 Dissemination Arrangements: APF Members Line Manager e-mail Team Brief AthenA / Intranet October 2011
Is this a new policy? If yes why is it required? i.e. to satisfy best practice/comply with new legislation If no, name of previous policy and reason for replacement No Summary of Substantive Changes Made Section: Section: Section: Section: Section: Section: Section: Section: Summary of Technical Changes Made Wording Changes within Section 1, paragraph 2 to state there will be no default retirement age within NHS A&A The Employees notification form has been taken out of the policy. Line Manager will then write to the employee within 7 days of the meeting confirming the arrangements agreed. Section: Section: October 2011
CONTENTS 1. Introduction Page 2 2. Objectives Page 2 3. Notification of retirement Page 2 4. Phased retirement Page 3 5. Annual leave during phased retirement Page 3 6. Preparation for retirement Page 4 7. Pensions application Page 4 8. Return to Work after retirement Page 4 9. NHS Retirement Fellowship Page 5 10. Retirement Gift/Presentation Page 5 11. Responsibility Page 6 12. Monitoring and Review Page 6 Appendix 1 Retirement Form Page 7 Appendix 2 Contact Numbers Page 8 Appendix 4 Flow Chart Page 9 October 2011 1
1. INTRODUCTION NHS Ayrshire and Arran recognises the importance of a retiral policy that is clear, concise and free from all forms of discrimination for employees and the need to ensure that appropriate support is available to staff at the time of their retiral from work. With effect from 1 October 2011 there will be no default retirement age in NHS Ayrshire and Arran. This is seen, as an important element of the Organisation s commitment to equal opportunities and the following procedures will ensure fairness and equity in relation to all staff groups. At the same time, the Organisation wishes to ensure that when employees retire, appropriate recognition is given to their contribution to the Organisation and to the NHS in general. This policy and related procedures do not in any way affect the rights of individual employees who are members of the National Health Service Superannuation Scheme in Scotland to the benefits and provisions of that Scheme. 2. OBJECTIVES (a) (b) (c) To ensure fairness & equity approaching retirement. To manage the retiral process in a way which allows the employee to retire with dignity and facilitates appropriate celebration of attaining retirement status. To ensure appropriate recognition of long service and reward loyalty when employees retire. 3. NOTIFICATION OF RETIREMENT Should employees wish to retire they must contact the Organisation and Human Resources Development Department (O&HRD) and notify them of their intention. They must also notify their line manager by letter of resignation. The Department of O&HRD will notify the employee s line manager when they receive any notification of retirement from an employee. The line manager will then follow the process as outlined in this policy. In conjunction with the Department of O&HRD, the Line Manager will then arrange an individual interview with the member of staff, 6 months before the actual date of retirement, in order that a 'Retirement Plan' may be agreed. The employees notification must be made using the standard form in Appendix 1. The Line Manager will respond in writing to the employee s notification of intended retirement date within 14 days, arranging to meet with them to discuss the notification. October 2011 2
Line Manager will then write to the employee within 7 days of the meeting confirming the arrangements agreed. 4. PHASED RETIREMENT Any member of staff who intends to retire is entitled to phased retirement although should the employee return to work with NHS Ayrshire and Arran there will be no further entitlement to phased retirement. Only one entitlement to phased retirement is allowed per person. In order that an employee can adjust to the prospect of increased leisure hours, a gradual reduction in working hours will be introduced 12 weeks prior to retirement, for example, employees are required to work: Week 12 to week 9 before retirement: Work 4 days per week Week 8 to week 5 before retirement: Work 3 days per week Week 4 to week 0 before retirement: Work 2 days per week The above is based on full time or pro-rated working 5 days per week, which ever applies. For any other combination of shifts/working pattern, this will be as follows: Week 12 to week 9 before retirement: Week 8 to week 5 before retirement: Week 4 to week 0 before retirement: Work 4/5 ths of a week Work 3/5 ths of a week Work 2/5 ths of a week In order that employees can take advantage of the full 12 weeks phased retirement period it is advised that they notify their Line Manager as early as possible but no later than 6 months before their intended date of retirement. Please note that employees should not undertake any form of work on a phased retirement day. Phased retirement days can be rostered flexibly in any given week. 5. ANNUAL LEAVE DURING PHASED RETIREMENT During this time employees will receive their normal rate of pay. Staff should be encouraged to utilise any annual leave prior to phased retirement subject to the needs of the service. If this is not possible, any outstanding annual leave will be paid on termination of employment. However, if the employee wishes to take annual leave during the phased retirement period, and this can be accommodated, the amount of annual leave required to be taken would be as follows: If the employee wishes to be off for one full week during any phased period, the employee will request as annual leave the balance of days/hours per week October 2011 3
normally worked minus the number of phased retirement days/hours per week they are entitled to. If the employee does not wish to be absent for a whole week but wishes, in addition to agreed phased days/hours, to further reduce total days/hours at work they would simply request leave for the additional days/shifts they wish off in the normal way. 6. PREPARATION FOR RETIREMENT Pre-retirement courses are available for all employees up to one year before their planned retirement date. For further advice and/or information on these courses employees should contact the Education Centre at Crosshouse Hospital or access the Department of O&HRD AthenA website where they will have access to a wide range of information. Upon receipt of notification of retirement a 'retirement pack' will be issued containing all relevant documentation. Employees will have access to a health check and advice from the Occupational Health Department prior to their retirement date should they so wish. 7. PENSIONS APPLICATION Employees are recommended to give a minimum of 6 months notice of their intention to apply for their occupational pension, before the retirement date, to ensure that the pension is paid timeously. For further guidance please refer to the SPPA booklet which can be obtained from SPPA directly or by contacting the Department of O&HRD. (see Appendix 2) 8. RETURN TO WORK AFTER RETIREMENT Employees may request to return to work after retirement. For those who are superannuated and in receipt of their NHS Superannuation pension:- Members of the 1995 Section - If you commence re-employment in the NHS after retirement, you must notify the SPPA if you are under Normal Pension Age (60 for 95 Section members and 65 for 2008 Section members) or are over Normal Pension Age and not had a break in service. Under Normal Pension Age: If you are under normal pension age your pension may be affected. If you have claimed your pension early and it has been reduced to pay for early retirement i.e. Voluntary Early Retirement with Actuarial Reduction, then your pension will not be affected if you return to work in the NHS provided you have had a month's break or a 24 hour break and not worked more than 16 hour per week for the 1st calendar month. Your pension will also not be October 2011 4
affected if you are in receipt of benefits under the "new style" redundancy arrangements. Over Normal Pension Age: Provided you have had a month's break or a 24 hour break and not worked more than 16 hour per week for the 1st calendar month, your pension will be unaffected. If you have not satisfied the above criteria, your pension will be suspended. Your pension will also remain unaffected if your re-employment is out with the NHS. Members of the 2008 Section Under Normal Pension Age: If you are under normal pension age your pension may be affected. Over Normal Pension Age: If you are in receipt of all your pension benefits, you can commence re-employment the next day and your pension will be unaffected. Those who retire and are not in receipt of an occupational Superannuation pension can commence re-employment in another post within the organisation the next day should they so wish. For all retirees whether superannuated or not, if they retire and then take up a new post within the organisation, along with all the benefits which will continue due to continuous service, their sickness absence record for the rolling year will remain in order that the employee is given appropriate support. 9. NHS RETIREMENT FELLOWSHIP The Organisation actively supports the NHS Retirement Fellowship. On notification of their intention to retire employees will be provided with information about the local branch and will be encouraged to take advantage of the benefits and facilities offered by this organisation. Employees wishing to join the NHS Retirement Fellowship are advised to complete the appropriate form within the retirement pack. 10. RETIREMENT GIFT/PRESENTATION In order to acknowledge the employee s loyalty to the NHS Ayrshire and Arran, a retiral gift will be presented to those who have 10 or more aggregated years service with the organisation. Only service with NHS Ayrshire and Arran will be recognised for the purposes of payment. This will comprise of 11 for each complete year of service, for example aggregated service of 10 years service the employee will receive 110. October 2011 5
Although retirement gifts are deemed to be taxable, a cheque will be drawn in favour of the employee for the full amount and NHS Ayrshire and Arran will meet the tax and national insurance costs. The arrangements for the presentation will be the responsibility of the employee s Line Manager. 11. RESPONSIBILITY Line Managers will meet with their retiree prior to retirement to explain entitlements due and are responsible for ensuring the proper implementation of these procedures within the timescales provided. 12. MONITORING AND REVIEW This policy will be monitored and reviewed every two years or sooner in light of any legislative changes and in line with NHS changes such as, for example, Agenda for Change, to review its utilisation and impact on service provision. October 2011 6
APPENDIX 1 EMPLOYEE RETIREMENT FORM Name: Address: Payroll Number: Job Title: Base: Retirement Date: It is my intension to retire on the above date. Prior to retirement I would wish to request to change my current working pattern Yes/No (If yes) In accordance with the organisation s Flexible Working Policy I therefore wish to request a change in my working pattern as follows; (detailing how many hours/days per week you wish to work) Any request for a change in working hours or pattern will be considered in accordance with the requirements of service provision. Signed Print Name Date Please complete the above form and then return to the Office Administrator Department of O&HRD, 64C Lister Street, Crosshouse Hospital, Kilmarnock October 2011 7
APPENDIX 2 CONTACT NUMBERS Scottish Public Pensions Agency 7 Tweedside Park Tweedbank Galashiels TD1 3TE www.sppa.gov.uk Tel: 01896 893000 Human Resources Office Administrator 01563 825960 Payroll Manager 01292 513700 Education Centre Crosshouse Hospital 01563 577051 (to book your place on the pre-retirement course) October 2011 8
APPENDIX 3 FLOW CHART Employee notifies the Department of O&HRD in writing of their intention to retire. O&HRD then notifies the Line Manager of the employee s intentions. Line Manager writes to the employee within 14 days of receipt of their notification to retire, arranging to meet with them to discuss the notification Employee may have requested change in hours or work pattern Line Manager writes to the employee within 7 days of the meeting confirming the arrangements agreed. Employee submits appropriate retirement paperwork (where applicable) and retires as Planned. END OF PROCEDURE October 2011 9
EQUALITY & DIVERSITY IMPACT ASSESSMENT When completed, a copy of this EDIA form should be emailed to elaine.savory@aapct.scot.nhs.uk Name of Strategy RETIREMENT POLICY INCLUDING PHASED RETIREMENT Name of Division NHS AYRSHIRE AND ARRAN Names and role of Review Team: POLICY WORK TEAM Date(s) of assessment: December 2008 PART ONE: RAPID IMPACT ASSESSMENT (INITIAL SCREENING PROCESS) SECTION ONE AIMS OF THE PROGRAMME 1.1. Is this a new or existing Policy : existing 1.2. What is the aim or purpose of the Strategy: To support the Equal Opportunities Policy and Employment Legislation by defining the process of retirement to be followed by all employees, supporting the right to request to work beyond the date when they would wish to consider retirement. 1.3. Who is this strategy intended to benefit or affect? In what way? Who are the stakeholders? All staff and potential staff of retirement age. 1.4. What outcomes are intended from this Strategy The policy will support the organisation s commitment to equal opportunities for all staff and promote a consistent approach throughout the organisation, applied equably and fairly to all. October 2011 10
1.5. How have these people been involved in the development of this policy? The policy has been developed in partnership through the Policy Development and Review Working Group. The policy was then circulated for consultation through the APF. 1.6. What resource implications are linked to this strategy The policy will require regular monitoring and reviewing to ensure compliance with relevant legislation and PIN Policy. Monetary cost of training. SECTION TWO IMPACT ASSESSMENT Complete the following table, giving reasons or comments where: The Programme could have a positive impact by contributing to the general duty by Eliminating unlawful discrimination Promoting equal opportunities Promoting relations within the equality group Taking account of disabilities The Programme could have an adverse impact by disadvantaging any of the equality groups. Particular attention should be given to unlawful direct and indirect discrimination. If any potential impact on any of these groups has been identified, please give details - including if impact is anticipated to be positive or negative. Equality Target Groups Positive impact Adverse impact Reason or comment for impact rating 2.1. Women and Men X The policy is accessible to all staff, regardless of gender. 2.2. Minority ethnic groups inc gypsy travellers, refugees & asylum seekers X There are the potential for language and cultural barriers in access to the policy. This will be overcome be ensuring the policy is available in a variety of format and languages. October 2011 11
2.3. Children & Young people 2.4 People with disabilities (physical or learning) X The policy is accessible to all staff. 2.5 Religious or faith groups X The policy is accessible to all staff. 2.6 Older people X The policy is accessible to all staff, regardless of age. 2.7 Homeless 2.8 Looked after and Accommodated: Children Adults Older People 2.9 Lesbians 2.10 Gay men 2.11 Bisexuals 2.12 Transgender people 2.13 People with language or social origin issues X X X X The policy is accessible to all staff. The policy is accessible to all staff. The policy is accessible to all staff. The policy is accessible to all staff, regardless of gender. 2.14 Individuals with Mental Health issues X The policy is accessible to all staff. 2.15 People in criminal justice system October 2011 12
2.16 People in poverty X Enables staff to remain in paid work for longer. 2.17 Married and unmarried people/civil partnerships X The policy is accessible to all staff. 2.18 Staff X The policy is accessible to all staff. SECTION THREE CROSSCUTTING ISSUES What impact will the proposal have on lifestyles? For example, will the changes affect: Positive impact Adverse impact Reason or comment for impact rating 3.1 Diet and nutrition? 3.2 Exercise and physical activity? 3.3 Substance use: tobacco, alcohol or drugs? 3.4 Risk taking behaviour? 3.5 Education and learning, or skills? X Policy encourages retention of employees through allowing them to work on in their existing post and allowing them to maintain and develop skills. 3.6 Other X Policy allows staff to better achieve a work life balance as they approach retirement. October 2011 13
SECTION FOUR CROSSCUTTING ISSUES: Does your Programme consider the impact on the social environment? Things that might be affected include: Positive impact Adverse impact Reason or comment for impact rating 4.1 Social status X The individuals will be able to retain their social status through continued employment 4.2 Employment (paid or unpaid) X The individual will be able to retain paid employment 4.3 Social/family support X The individual will be able to better balance work and family commitments 4.4 Stress X The individual will be able to better balance work and family commitments 4.4 Income X The individual will be able to retain a regular income while working SECTION FIVE CROSSCUTTING ISSUES Will the proposal have an impact on the physical environment? For example, will there be impacts on: Positive impact Adverse impact Reason or comment for impact rating 5.1 Living conditions? 5.2 Working conditions? 5.3 Pollution or climate change? 5.4 Accidental injuries or public safety? October 2011 14
5.5 Transmission of infectious disease? 5.6 Other Will the Programme have any impact on Discrimination? X The policy is accessible to everyone, regardless of age, sexual orientation, religion, gender, disability or race. Equality of opportunity? X The policy will promote equal opportunity through being accessible to everyone. Relations between groups? X The policy is accessible to everyone and is applied equally to everyone, therefore, no group will be adversely affected. Other Will the proposal affect access to and experience of services? For example: Positive impact Adverse impact Reason or comment for impact rating Health care X Enables retention of very experienced staff. Social Services Education Transport Housing October 2011 15
PART TWO SECTION SIX EXAMINATION OF AVAILABLE DATA AND CONSULTATION Data could include: consultations, surveys, databases, focus groups, in-depth interviews, pilot projects, reviews of complaints made, user feedback, academic or professional publications, reports etc) Name any experts or relevant groups / bodies you should approach (or have approached) to explore their views on the issues. As part of the Policy Development and Review process information is gathered via initial consultation through the APF to inform the review and highlight any key issues for consideration. Following the review a final draft is prepared and circulated for final consultation prior to submission to the APF for approval. What do we know from existing in-house quantitative and qualitative data, research, consultations, focus groups and analysis? What do we know from existing external quantitative and qualitative data, research, consultations, focus groups and analysis? What gaps in knowledge are there? No formal internal audit currently in place to establish the effectiveness of the policy or the number of applications granted/not granted. In relation to the groups identified: What are the potential impacts on health? Positive retain support network of colleagues and work friends, access to support from occupational health, maintain standard of living Will the Programme impact on access to health care? If yes - in what way? No Will the Programme impact on the experience of health care? If yes - in what way? No October 2011 16
SECTION SEVEN HAVE ANY POTENTIAL NEGATIVE IMPACTS BEEN IDENTIFIED? If so, what action been proposed to counteract these? Negative impacts (if yes, state how) e.g. Is there any unlawful discrimination? NO Could any community get an adverse outcome? NO Could any group be excluded from the benefits of the Programme/function? NO Does it reinforce negative stereotypes? NO SECTION EIGHT MONITORING How will the outcomes be monitored? The policy outcomes will be monitored by the department of O&HRD, Policy Development and Review Working Group and APF. What monitoring arrangements are in place? The policy will be reviewed every two years by the Policy Development and Review Working Group as part of the work programme and submitted to the APF for approval. Who will monitor? The policy will be monitored by the department of O&HRD, Policy Development and Review Working Group and APF. What criteria will you use to measure progress towards the outcomes? The uptake of the policy within the organisation. Recommendations (This should include any action required to address negative impacts identified SECTION NINE FOR NEW POLICIES ONLY What research or consultation has been done?? October 2011 17
What stage is the Programme at? What is the target date for completion? Is a more detailed assessment needed? (It is not necessary to subject all proposals to a detailed assessment.) If so, for what reason? COMPLETED PROGRAMME Who will sign this off? APF When? January 2009 PUBLICATION How will this be published? Intranet and hard copies available from the department of O&HRD Copy given to Equality & Diversity Officer Yes Carried Out by Title Signature Date Authorised by Title Signature Date October 2011 18