Our HR Plicies Flexible Wrking Plicy Aim f the plicy The Kelda Grup is cmmitted t prmting flexibility in the wrkplace and believes that this flexibility can increase mtivatin, prmte wrk-life balance, wellbeing and imprve perfrmance and prductivity. This plicy, alng with ur ther plicies which prmte flexible wrking arrangements, has been designed t help yu t balance wrk and persnal life. We recgnise that, frm time t time, clleagues may wish t make a permanent change t their wrking arrangements fr their wn reasns. We als recgnise that a respnsible use f infrmal flexible wrking arrangements n a day t day basis can help t manage persnal and business requirements. This plicy supprts ur cmmitment t prmting flexibility, whilst ensuring that we cmply with the legal prvisins f flexible wrking. Scpe f the plicy The Flexible Wrking plicy applies t all clleagues in Kelda Grup Ltd and its whlly wned grup cmpanies in the UK. Arrangements under TUPE may differ slightly- please refer t yur lcal agreements. 1) Requests fr Flexible Wrking Eligibility All clleagues wh have at least 26 weeks cntinuus service have the legal right t make a request fr flexible wrking. Definitin Flexible wrking in this cntext, means a permanent change t the nrmal cntracted hurs r pattern r ways f wrking, at the request f the clleague. Sme examples f flexible wrking include:- A change in the ttal number f hurs wrked each week e.g. a reductin frm full time t part time A change in the pattern f wrking hurs e.g. a slightly later start and finish time each day A change in the lcatin f wrk e.g. wrking frm hme fr sme f the time Annualised hurs r term time wrking Flexible Wrking with Pensin If yur request is fr a reductin in hurs and yu are aged 55 r ver, yu may be eligible, if yu wish, t draw sme f yur pensin. This will depend n the scheme yu are a member f. Please refer t Appendix 1 fr further details. Applicatin Any request fr flexible wrking must be made in writing by submitting a Flexible Wrking Applicatin Frm t yur manager. 1
Our HR Plicies Yur applicatin must include the fllwing:- The date f the applicatin, the change t wrking cnditins yu are seeking and when yu wuld like the change t cme int effect What effect, if any, yu think the requested change will have n the business and hw, in yur pinin, any such effect may be dealt with If and when yu have made a previus applicatin fr flexible wrking Once an applicatin has been made, the cmpany reserve the right nt t accept any further applicatin frm yu within the next 12 mnths. Fr infrmatin n hw a reductin in wrking hurs will impact n yur pay and benefits, please refer t the Part-Time Wrking Plicy n SAM. Cnsideratin f the request Yur manager will speak t yu as sn as pssible after receiving yur request. If yur manager can apprve yur request, a meeting is nt needed and they will implement the agreed changes. If yur manager isn t certain whether r nt the request can be apprved, they will invite yu t a meeting t discuss the request in mre detail. Yu may be accmpanied by a wrk clleague r Trade Unin representative at this meeting if yu wish. A HR representative will nt nrmally be present at this meeting. Yur manager will infrm yu f their decisin in writing as sn as pssible fllwing this meeting. What happens if a request is accepted If yu make a request fr flexible wrking and yur manager agrees t the change, this will be treated like any ther cntractual change. Yur manager will arrange t respnd t yur request in writing by cnfirming the revised wrking arrangements. This will be treated as a permanent change in yur cntractual terms, unless agreed therwise. Yu therefre need t think carefully abut yur lng term wrking arrangements and any assciated impact n yur pay and benefits befre making a request under this plicy. Grunds fr refusal An applicatin can be declined nly where there is a clear business reasn. The business grund(s) fr refusing an applicatin will be frm ne f thse listed belw:- Burden f additinal csts t the business Detrimental effect n ability t meet custmer demand Inability t rerganise wrk amng existing staff Inability t recruit additinal staff Detrimental impact n quality Detrimental impact n perfrmance Lack f available wrk during the times/perids yu are prpsing t wrk Planned structural changes 2
Our HR Plicies Appeal If yur manager declines yur request, yu may appeal. This shuld be made in writing as sn as pssible fllwing the receipt f the riginal decisin setting ut the grunds fr the appeal and shuld be sent t the next level f management (the Senir Manager ). This may be yur line manager s direct manager r an alternative manager at the same level. In exceptinal circumstances (e.g. due t hlidays r previus business cmmitments) appeals may be heard by a manager at the same level as lng as they have had n previus invlvement in the request. Examples f the grunds fr the appeal culd be: T prvide sme new infrmatin which yur manager may nt have been aware f T challenge a fact yur manager used in applying their business grunds fr declining yur request The Senir Manager will then arrange t meet with yu. Yu have the right t be accmpanied at the meeting by a Trade Unin representative r wrk clleague if yu wish. A HR representative will nt nrmally be present at this meeting. Yu will receive written cnfirmatin f the Senir Manager s decisin after the meeting has been held. If the decisin is t decline yur appeal applicatin yu will receive a written explanatin f the grunds fr that decisin. There is n further right f appeal. Time limits There are n specific time limits within each stage f this prcedure. Hwever, where practicable, all requests fr flexible wrking, including any appeals, must be cnsidered, and a decisin made, within a perid f three mnths frm first receipt f the applicatin. If hwever, it is nt practical t fllw the prcedure within this timescale, it can be extended by agreement between bth parties. Absence frm meetings If a meeting is arranged t discuss the applicatin including any appeal and yu fail t attend bth this and a rearranged meeting withut gd reasn, the cmpany will cnsider the request t be withdrawn. 2) Infrmal Flexible Wrking Arrangements A respnsible use f infrmal flexible wrking is encuraged where it is helpful in managing shrt term r ccasinal persnal and business requirements. This applies t all clleagues ther than thse wh participate in the Frmal Flexi-Time Scheme (fr the rules f this scheme please refer t the Flexi- Time Rules ). The main features f infrmal flexible wrking arrangements are: Flexibility arund wrking time An infrmal system relies n trust between management and team members rather than frmal mnitring. Individuals must agree their hurs/ pattern f wrk in advance with their manager. Flexibility arund lcatin smetimes it may be easier t manage sme wrk away frm the usual wrkplace t minimise disruptin. This may include wrking frm hme althugh individuals are expected t be cntactable during nrmal wrking hurs. Individuals must seek authrisatin in advance frm their manager t wrk frm an alternative lcatin. Examples f infrmal flexible wrking arrangements are: 3
Our HR Plicies An clleague wh usually wrks 9am t 5pm btains permissin frm their manager t wrk frm 8am t 4pm n a certain day in rder t attend a persnal appintment at 4.30pm An clleague btains permissin frm their manager t wrk at an alternative site fr ne day in rder t minimise disruptin f a prject they are wrking n It is nrmally expected that the clleague s cntracted hurs will be wrked each week and hurs wn t be banked r brrwed beynd this. Versin Cntrl Last Update: 1 st Octber 2017 Next Review Update: 1 st April 2018 Last Bard Apprval: December 2015 Next Bard Apprval: December 2017 Plicy Owner: Emplyee Relatins & Reward 4
Prcess Step 1-Request Clleague submits a request t change their wrking arrangements t their manager by cmpleting the request frm available n SAM/SAP. Step 2-Cnsideratin Manager cntacts the HR Plicy & Case Team t discuss the plicy & prcess. Manager has an initial discussin with the clleague and liaises with any relevant parties necessary t help ascertain whether r nt the request can be accepted r whether a variance f the riginal request can be cnsidered NB: Step 3-Manager can accept the request (r a variance which is acceptable t the clleague) Manager t advise the clleague f the decisin (n frmal meeting is required) Date f change t be agreed Manager t submit a Change f Hurs frm in SAM/SAP Shared Services-HR Admin t prvide manager with letter t issue t clleague cmmunicating the decisin An applicatin can be rejected if ne has already been made in the last 12 mnths The whle prcess (including any appeal) must be cmpleted within 3 mnths The Plicy & Case Team have prvided template letters t Shared Services-HR Admin (accept) and t line managers (decline) as part f the manager guidelines A meeting template is available in the manager guidelines and a cpy shuld be sent t the HR Plicy & Case Team upn cmpletin A HR representative will nt nrmally be present at meetings 5 Step 3-Manager may nt be able t accept the request (r a variance which is acceptable t the clleague) Manager cntacts the HR Plicy & Case Team fr advice n arranging a meeting with the clleague t discuss in mre detail hw they think the change can be accmmdated and t ascertain any flexibility the clleague has with their request Right t accmpaniment Step 4-Request/Variance f Request Accepted Date f change t be agreed Manager t submit a Change f Hurs frm in SAM/SAP Shared Services-HR Admin t prvide manager with letter t issue t clleague cmmunicating the decisin Step 4-Request Declined Manager t cntact the HR Plicy & Case Team t cnfirm the reasns fr decline and cmmunicate the decisin in writing t the clleague, utlining the right t appeal (letter prvided in the manager guidelines) Letter t include the business reasn fr the decline frm the plicy Step 5-Appeal Clleague t send letter f appeal, utlining the grunds fr appeal t the senir manager Manager cntacts the HR Plicy & Case Team fr advice n hlding the appeal meeting Appeal meeting t be held with the right t accmpaniment Senir manager t cmmunicate the decisin in writing t the clleague and cpy the HR Plicy & Case Team in (letter prvided by Shared Services-HR Admin, via a Change f Hurs frm in SAM if decisin is verturned)
Appendix 1 Flexible Wrking With Pensin Guidelines fr Clleagues What is Flexible Wrking with Pensin? This is a way fr eligible individuals wh have, in line with the Flexible Wrking Plicy successfully requested t wrk part-time hurs t:- Wrk thse hurs with pr-rated salary and benefits and receive sme f their accrued pensin; and, Cntinue t accrue pensinable service fr the part-time hurs that they wrk. The pensin benefit payable will depend n yur age and the scheme yu are in. Pensin regulatins are currently underging a great deal f change. Yu are advised, therefre, t seek guidance frm Grup Pensins and/r BlackRck as t the current psitin in relatin t early access t yur pensin benefits. It is als recmmended that yu cnsider seeking independent financial advice befre cmmitting t flexible wrking with pensin. Eligibility If yu wish t reduce yur wrking hurs yu can d s by making a flexible wrking request in line with the Flexible Wrking Plicy. If in additin t reducing yur wrking hurs yu want t access sme f yur pensin t cver the drp in yur earnings yu must als: Be 55 r ver at the time f applicatin; Be a member f the Kelda Grup Pensin Plan (KGPP) r Be a member f Kelda Stakehlder + (With effect frm 1 April 2015) If yur request fr flexible wrking is successful, yu can request t be paid a prprtin f yur accrued pensin as fllws: Members f KGPP (CARE Sectin): Will receive 50% f their pensin accrued t 31 March 2013 (excluding frmer Career Chices members), regardless f the size f reductin in wrking hurs. Hwever, if flexible retirement begins befre the nrmal retirement date then the early retirement terms will apply and this means that, depending n yur age, sme r all f the pensin cming int payment may be actuarially reduced. Members f Kelda Stakehlder + Can request t draw dwn a prprtin f their pensin pt. 6
Applicatin Prcess fr Flexible Wrking with Pensin Befre applying fr flexible wrking with pensin yu shuld: Read the Flexible Wrking Plicy and guidelines t understand the prcess fr requesting a reductin in wrking hurs with pensin. The plicy can be fund n SAM. Read the guidance relevant t yur pensin scheme, which is available n the Hive. If yu want t request flexible wrking with pensin the prcess is as fllws: Fr members f a KGPP (CARE Sectin) Request and btain an illustratin frm Grup Pensins at Western Huse using the frm available n SAM. Cmplete and submit a request fr flexible wrking applicatin frm in line with the guidance set ut in the Flexible Wrking Plicy and state n it that yu wish t apply fr flexible wrking with pensin. Yu can find this n SAM. Yur request will then be dealt with in line with the Flexible Wrking Plicy. If the request is accepted, yur manager will arrange fr the apprpriate changes t be made t yur terms and cnditins. Yu will need t cntact Grup Pensins and give ne calendar mnths ntice f the date n which yu want yur pensin t start being paid. Fr Members f Kelda Stakehlder + Cntact BlackRck n 0845 6017721, discuss what yu want t d and get estimates as apprpriate. Cmplete and submit a request fr flexible wrking applicatin frm and state n it that yu wish t apply fr flexible wrking with pensin. Yu can find this n SAM. Yur request will then be dealt with in line with the Flexible Wrking Plicy If the request is accepted, yur manager will arrange fr the apprpriate changes t be made t yur terms and cnditins. Yu will need t cntact BlackRck t infrm them f the date n which yur benefits shuld be released. Impact n Pay, Benefits and Emplyment Fr infrmatin n hw a reductin in wrking hurs will impact n yur pay and benefits please read the Part-Time Wrking Plicy which can be fund n SAM. If yu reduce yur wrking hurs thrugh the flexible wrking plicy, yu will be restricted n yur nn-wrking days, within reasnable limits, frm future emplyment within the Kelda Grup and frm being engaged within the Kelda Grup n a self-emplyed cnsultancy basis, r assigned by an agency t wrk n behalf f the Kelda Grup. Cmmercial restrictins utside Kelda may als apply. Impact n Pensin fr Members f KGPP (CARE Sectin) Hw des flexible retirement affect my pensin in the lng run? If yu take flexible retirement befre age 60, the part f yur pensin taken early may be reduced fr early payment. This is called an actuarial reductin. The part nt taken will remain in the KGPP and will be available withut any actuarial reductin frm age 63. 7
Is actuarial reductin affected by the timing f flexible retirement? The actuarial reductin is calculated as at the date f yur flexible retirement and reflects the fact that yur pensin is being paid fr a lnger perid. The nearer this date is t yur nrmal retirement date, the lwer any reductin will be. The size f the reductin is affected by which sectin in which yu built up benefits within the Plan and yu shuld therefre seek a flexible retirement benefits illustratin if yu wish t better understand hw yur benefits are determined n early retirement. The reduced rate f pensin applies thrughut the life f the pensin, subject t the annual inflatin increases referred t in the next questin. Will the part pensin taken as flexible retirement still g up with annual inflatin? The part pensin will be increased annually in accrdance with the relevant sectin f the KGPP rules. Can I vary the amunt f pensin I receive after I have mved t part-time hurs? N. Thugh at full retirement yu will be entitled t take the remaining 50% accrued up t 31 March 2013, nt taken when yu mved t reduced hurs and yur CARE pensin. Will I be able t take sme f my part-pensin as a lump sum? Yu may be able t take up t 25% f the value f yur pensin that cmes int payment as cash, at the time f flexible retirement. On reaching yur nrmal retirement date, yu may be able t take up t 25% f the value f the remaining pensin that cmes int payment as cash. In bth cases this cash payment will be subject t HM Revenue and Custms limits at the time and t the rules f the Kelda Grup Pensin Plan (KGPP). Please ask Grup Pensins fr further details. If yu ask fr an illustratin, infrmatin abut any lump sum ptin will be included. What happens t my pensin if my salary ges up after I agree t flexible retirement? Any salary increase e.g. annual pay award will nly feed thrugh t the accrual f yur CARE pensin. If I take flexible retirement, hw des this affect death-in-service benefits? Any lump sum payment fr death in service wuld be based n yur reduced rate f pay at the date f death. Spuse, civil partner, children and dependants pensins will remain payable but will be lwer if an actuarial reductin has been applied. Is casual vertime part f my pensinable pay? N, casual vertime is nt part f yur pensinable pay. Hw des part-time wrking affect the way final salary figures are calculated fr the purpse f pensin payments? There is n final salary figure. Cntinuing pensin accrual is in the CARE sectin f the KGPP and is based n yur actual pensinable pay fr each year. Please refer t the Plan handbk fr details. If a few years ag I wrked a lt f cntractual vertime will my pensin take this int accunt? This has already been taken int accunt in the final salary figure at 31 March 2013 (i.e. when the frmer sectins were clsed and all active members mved t the CARE sectin) 8
Will taking flexible retirement impact n my state pensin? Any impact n yur state pensin shuld be marginal, but yu shuld check this with the Department f Wrk and Pensins and yur Independent Financial Adviser. What abut AVCs? Under the terms f the Plan yu will, if yu wish be able t access yur AVCs when yu receive benefits under the flexible wrking plicy. Yu will als be able t make AVCs when wrking part-time. If I start receiving a pensin under the flexible wrking plicy will I be able t transfer the remainder f my benefits? N. The Trustees and the Cmpany have cnsidered whether t ffer partial transfers f pensin benefits and have decided nt t permit such transfers. The nly partial transfers that are permitted are related t AVCs and certain cnditins apply. Yu will need t cntact Grup Pensins if yu are interested in this ptin. 9