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Retirement Policy

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Name of Policy: Retirement Policy

Reference Number:

RRA – Impact Assessed:

Date created:

Date approved by JSPC:

Date approved by Board:

Policy review date:

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Retirement Policy 1. Purpose

It is this PCT’s intention to provide staff with information regarding their retirement and to deal with the issues sensitively and promptly. This policy has been produced to enable both staff and managers to deal with this issue with consistency across the PCT. In addition, the policy’s intention is to ensure that employees and managers are aware of their entitlements and responsibilities in respect of retirement and to ensure that staff are aware of their flexible retirement options.

2. Scope

This policy and procedure applies to all employees.

3. Principles

• The PCT encourages staff to prepare for their retirement, both financially and personally.

• The PCT is keen to promote a flexible approach to retirement in

accordance with the principles of the Sex Discrimination Act 1986, Employment Equality (Age) Regulations 2006 and the NHS Pension Scheme where applicable.

4. Pension Scheme Members

4.1. Normal Age Retirement • Retirement may be at an age when employees become eligible

for a National Health Service Pension (age 60) or when entitled to a State Pension (age 65).

• All employees, who are members of the NHS Pension Scheme,

may retire on or after the age of 60 when a National Health Service pension is payable.

• All employees are entitled to continue working to age 65, and

have the right to request to continue working beyond this age. Appendix 1, Retirement Procedure, explains the process, which should be followed.

4.2. Special classes of NHS employees

Please note that the Pension scheme is currently su bject to a national review and consultation process and this p olicy will be reviewed in the light of any changes arising fro m this.

Certain special classes of NHS employees (nurses, midwives, physiotherapists and occupational health nurses, health visitors and mental health officers) with pension membership prior to March 1995 may still be eligible to retire with an unabated pension from the age of 55. Details are available from the Pensions Manager.

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4.3. Flexible Retirement Any of the following options may be available and staff may apply for flexible retirement before reaching age 65: • Continuing to work beyond age 65 by mutual agreement • Reduction of hours within current post whilst continuing to pay

into pension scheme thus still building up pension;

• Retiring from current post and then returning to work in a permanent new post possibly on reduced hours (24 hour minimum break in service required);

• Stepping down from current post (with Manager’s approval) to a

lower graded post and having Pension preserved at the higher rate from the date of change.

Employees have the option to ease down into retirement and may continue working beyond age 65. Consideration will be given to requests and workforce requirements at the time of the request.

4.4. Voluntary Early Retirement

All employees may retire from the age of 50 should they choose to do so subject to normal notice requirements. However it should be noted that entitlement to pension benefits will be calculated on service on which employees have paid into the NHS Pension Scheme, less an abatement dependent upon age. In the unlikely event that the reduced pension is less than the Statutory Standard (previously Guaranteed Minimum Pension) employees will not be able to take Voluntary Early Retirement. Employees interested in voluntary early retirement should make an appointment with the Pensions Manager to obtain relevant information and if they subsequently decided to retire on this basis would be required to provide a written resignation to their manager.

4.5. Ill-Health Retirement

Employees who become permanently unfit may be eligible to apply for ill-health retirement where an employee has at least two years NHS pension scheme membership and the Occupational Health Department have advised that they are permanently incapable of working. Refer to PCT’s Sickness Absence Policy. Employees who are successful in applying for ill-health retirement will not therefore receive notice.

4.6. Premature Retirement on Grounds of Organisational C hange

Any decisions regarding this will be taken in accordance with the DH document, ‘Standards for implementing good human resource practice and value for money’. Details on this can be found in the Lewisham PCT Organisation Change policy.

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5. Non Pension Scheme Members All non-NHS scheme members may retire whenever they decide to do so, subject to normal notice period requirements. The flexible retirement options that may be available to non-pension scheme members are as follows:

If exploring the above as an option, advice should be sought from Pensions department on the implications.

6. Procedure for Retirement

• The Human Resources Directorate will produce regular reports of employees approaching retirement age. These reports will be made available to the relevant line manager’s 6 months prior the employees 65th birthday.

• Employees will be advised in writing by their manager 6 months prior

their 65th birthday informing them that they have the right to retire and explore their options for their future employment. The employee will also have the opportunity to discuss retirement options with the Pension Department.

• Should the employee choose to explore the opportunity of working

beyond their 65th birthday, they should make such request in writing (Appendix 3) no later than 3 months before their 65th birthday. All Line managers must discuss such requests with the relevant Associate Director, Head of Service or Director and if necessary seek advice from the Human Resources Directorate.

• All employees wishing to retire should provide their resignation in

writing, providing the usual contractual notice period. For employees retiring with NHS Pension Scheme entitlements, 3 months’ notice in writing is required in order that their pension is processed by their last day of service.

• Employees who are considering flexible retirement should in the first

instance contact the Pensions Manager for advice.

• Any extension beyond the age of 65 will be in accordance with the Retirement Procedure detailed in Appendix 1.

• Appropriate information concerning National Health Service pension

details and flexing retirement will be made available to all employees prior to retirement on request. If a pension scheme member, the employee is advised to approach the Pensions Manager for details.

• The PCT will endeavour to provide pre-retirement information and/or

access to appropriate guidance prior to retirement wherever possible, including departmental briefings, drop in sessions, etc.

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7. Information The PCT wishes that all employees retiring from employment with the PCT are able to access relevant information regarding NHS Pension Scheme entitlements. You are strongly advised to make an appointment with PCT’s Pensions Manager, to discuss personal NHS pension entitlements. Information is also available from your HR contact.

8. Human Resources, Managers, and Employee Responsi bilities

HR Directorate It is the responsibility of the HR Directorate to:

• Produce reports for line managers on those approaching retirement to allow sufficient time for all options to be considered and planning to take place

• Ensure the retirement process as detailed within this policy (below) is accurately followed. (Appendix 6 & 7)

• Monitor uptake of flexible retirement across the PCT wherever possible

Pensions

It is the responsibility of the Pensions Department to:

• Provide information on pension entitlement and ensure adequate records are kept.

Line Manager

It is the line manager’s responsibility to:

• Meet with the employee to discuss any request from them to work beyond their 65th birthday.

• Discuss with the employee the options available under flexible retirement.

• Ensure the employee is informed of the outcome of such request within 14 working days (or as soon as possible) in writing.

• Ensure a that a termination form (available on the Intranet) is completed in good time and received by the Human Resources Department at least 4 weeks prior to the last day of service. If the employee wishes to take their NHS Pension, then they must provide a minimum of 6 months notice before their actual retirement date to ensure the pension can be set up

Employee

• Individuals have a right to request their employer considers allowing them to work beyond their retirement date. It is the employee’s responsibility to make such requests to work beyond their 65th birthday to their line manager in writing no later than 3 months before their 65th birthday and they are strongly advised to make the request 6 months in advance

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• It is the employee’s responsibility to raise an appeal if they are dissatisfied. They should they do so in writing to the Director of Human Resources within 14 calendar days of the line manager’s decision. (Appendix 5).

Please note that Appendix 8 funding support is only available to former CHSL employees. Charitable Foundation does not prov ide this service to Lewisham PCT without such service history.

9. Retirement Appeals Procedure

• Appeals must be lodged in writing to the Human Resources Director within 14 calendar days of receiving the formal response from the original manager (Appendix 5). Grounds for appeal would be against retirement and refusal to extend employment beyond retirement age.

• The employee must fully complete Appeals form (Appendix 6). In

exceptional circumstances the employee may request that additional grounds for appeal are added – this should be submitted at least 5 days in advance of the hearing to the Chair (i.e. the Appeal Manager).

• Upon receiving the appeal (Appendix 6), Human Resources will

appoint a Chair.

• The original manager responsible for the decision will submit the Notification of Outcome form (Appendix 5). The form will provide sufficient background information to enable the manager hearing the appeal to understand the reason for the action and appreciate the circumstances of the case. These statements together with copies of any relevant correspondence will be sent to all parties to the appeal at least 5 clear working days before the hearing.

• Where the appeal is against the lack of response to the employee’s

request to extend beyond retirement age, the manager will provide a statement of case addressing the specific points of concern raised in the employee's written grounds and the rationale.

• A Human Resources representative will accompany the Chair to the

appeal to advise on procedural matters and take a record of the proceedings.

• The employee has the right to be accompanied by a Trade Union

representative or PCT Colleague.

• The Chair has the right to rule on the admissibility of any questions asked or evidence presented at the hearing. They also have the discretion to seek clarification or amplification of evidence and to adjourn the hearing for any reason, such as to allow further evidence to be produced or to clarify procedural matters, at any stage in the proceedings.

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• Failure of the employee to attend the hearing without adequate reasons

will result in the appeal being taken to have been withdrawn.

Procedure at the Hearing The procedure at the appeal hearing will be as follows:

• Introductions by Chair

• Employee will present evidence to support their appeal that the procedure was carried out unfairly or will give details of any new evidence to be considered.

• The manager will have the opportunity to ask questions of the employee/representative.

• The Chair will have the opportunity to ask questions of the employee/representative.

• The manager will present their case in support of the decision taken, in response to the employee's grounds for appeal.

• The employee and the Chair will have an opportunity to ask questions of the manager

• The Chair will invite the manager and the employee/representative to sum up their evidence in turn. The employee will have the right to sum up last. In summing up neither party may introduce any new matter.

• After the summing up, both sides will withdraw to allow the Chair to deliberate in private. The secretary will remain with the Chair to provide procedural and Human Resources advice.

• The Chair will consider the stated grounds for appeal and decide whether approve or decline the request.

• If necessary, the Chair may recall both parties to clarify points of uncertainty.

• The decision will normally be given to all parties verbally on the day of the hearing, provided time constraints allow.

• The outcome of the appeal will be fully communicated in writing on the Appeal Managers Feedback Form (Appendix 7) to the employee within 14 working days of the hearing. The notification will either uphold the appeal, or dismiss the appeal, providing a sufficient explanation of the refusal.

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Appendix 1 Retirement Procedure

1. Purpose

The Employment Equality (Age) Regulations will come into force on 1 October 2006 and will make discrimination on the grounds of age unlawful.

The Regulations retain the current national retirement age of 65 but employees will now have the opportunity to request to continue working beyond this. This will promote greater choice for older workers about planning their retirement.

Employers are required to follow the procedure set down in the Regulations, informing staff about their right to request to continue working beyond their 65th birthday.

2. Procedure

The procedure is managed in 5 steps as outlined below. Line managers should involve their HR contact at each stage.

Step 1 - Notifying the employee HR Advisors will produce regular reports for managers giving details of staff approaching retirement age.

At not more than 12 months but not less than 6 mont hs before an employee’s 65th birthday their line manager must notify them, in writing that their retirement age is approaching. It is recommended that they meet with the employee to discuss their retirement plans and ensure they are aware of the PCT’s policies.

The employee should be advised of the date they are due to retire and informed of their right to request to continue working past the age of 65 (see Appendix 2).

Step 2 – Employee response The employee should respond in writing (Appendix 3) as soon as possible but no later than 3 months before the date they are due to retire. It should be noted that if the employee wishes to take their NHS Pension, then they must provide a minimum of 3 months notice before their actual retirement date to ensure the pension can be set up. If the employee does not respond it will be assumed that they wish to retire on their 65th birthday.

Step 3 – Discussion of request received The line manager and employee must meet to discuss the request to continue working, (Appendix 4). At this meeting the employee may be accompanied by a Trade Union representative or work colleague if they so

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wish. A member of the Human Resources Directorate is also available to attend this meeting upon request.

Before this meeting, all Line managers must discuss such requests with the relevant Associate Director, Head of Service and Human Resources Directorate.

If the employee remains in the same post, they will continue to be employed on the same terms and conditions unless it is agreed that these will be varied.

Step 4 – Inform employee of decision The line manager must write to the employee within 14 calendar days of the meeting informing him/her of their decision (Appendix 5). If the request to continue working is accepted then a new retirement age will be set for one year’s time.

If the request is turned down, the employee must be informed of their right to appeal against this decision (Appendix 6).

Step 5 – Appeal If the employee wishes to appeal, they must follow the Appeals Procedure as detailed within the policy (Appendix 6). All appeals must be lodged within 14 calendar days of being notified of the outcome. It is possible the appeal will take place after the retirement has taken effect.

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Retirement Procedure

6 to 12 months prior the employees 65 th birthday

6 to 12 months prior the employees

65th birthday

Within 3 months of Within 3 months of l eaving Employee’s 65 th birthday date.

Within 14 calendar days of receiving formal request – (Appendix 3)

.

Within 48 hours of meeting (Appendix 4)

Within 14 calendar days of receiving formal notific ation – (Appendix 5)

HR Directorate informs line manager of all employees approaching 65 th Birthday.

Employee can request to continue working beyond 65 th

Birthday (Appendix 3)

Manager writes notifying the staff member of his/he r decision. (Appendix 5)

Employee does not want to continue

working beyond 65 th birthday – Completes

Leaver Forms (Appendix 3)

Member of staff needs to decide if they wish to appeal against the manager’s

decision. If so, they must put their appeal in writing to the Human

Resources Director (Appendix 6)

Manager and member of staff meet to discuss

Line manager writes to the employee (Appendix 2), confirming their retirement date, detailing

option to formally request working beyond 65 th birthday

Request is rejected Request is Accepted

Repeat process after 1 year.

The Appeal decision should be given using (Appendix 6) within 14 days of the Appeal hearing.

Manager invites staff member to a meeting to discus s request (Appendix 4)

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Appendix 2

Notification of Retirement Age (Template Letter)

Date Private & Confidential Name Address Dear [name] As you are aware you will be reaching your 65th birthday on [date] and I am writing to ask you to consider whether or not you wish to retire on this date. If you do, and are in the NHS Pension Scheme, you will need to give a minimum of three month’s notice to enable your pension to be set up by [date]. The PCT’s Pensions Manager, Claudia Neil, will be able to meet you to discuss what action you need to take. To arrange an appointment with Claudia Neil, please contact the Pensions Department on XXXXXXXXXXX. If you are not in the NHS Pension Scheme and wish to retire at age 65, your normal notice period of [XX] month[s] will apply. If you do not wish to retire on your 65th birthday you can request to continue working, in line with the PCT’s Retirement Policy. You will need to put your request to me, in writing, no later than 12 weeks - before [date]. I have enclosed a copy of the Retirement Policy, which gives details of the procedure. If you have any queries regarding the contents of this letter, please contact me on [phone number]. Yours sincerely Managers Name Job Title

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Appendix 3

Request to continue working beyond 65 th Birthday (Template Letter)

Private & Confidential Managers Name: _____________________ Managers Location: _______________________ Dear ______________ Having received your letter detailing my retirement options, EITHER I would like to meet to formally request working beyond my 65th Birthday. I understand that I am entitled to be represented by a Union representative / PCT Colleague at this meeting. I would like to advise you that I will be represented at this meeting / will not be represented at this meeting (delete where appropriate). OR I will not be requesting to work beyond my 65th Birthday. Thank you Name: __________________________ Job Title: _________________________ Date: __________________

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Appendix 4

Template Letter – Invite to discuss request

Date Private & Confidential Name Address Dear [name] I am writing to inform you that after receiving your request not to be retired that there will be a meeting to discuss your request. The meeting will be held on [insert date] at [insert time] at [insert location]. You have a right to be accompanied at the meeting by a Union representative / PCT Colleague. Your representative can address the meeting but not answer questions on your behalf although you may confer with your representative during the meeting. A member of the Human Resources Directorate may also be present at this meeting to provide advice. After the meeting, if it is decided to continue your employment beyond the intended retirement date of [insert date], you will receive written notification reflecting these agreed changes to your contract. If no agreement is reached you will receive further notification confirming your intended retirement date and informing you of your right to appeal Yours sincerely Managers Name Job Title

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Appendix 5 Template Letter – Notification of Outcome

Date Private & Confidential Name Address Dear [name] I am writing following our meeting on [date] to discuss your request to continue working beyond age 65. Also present were [name, job title]. EITHER Having considered your request, I am happy to confirm that your employment as [job title] will continue beyond your 65th birthday. As per the PCT’s Retirement Policy, your employment will be extended for one year and will now end on [date]. OR Having considered your request, I will not be extending your employment as [job title] beyond your 65th birthday. This is because [reason/s for not extending]. Therefore your employment with the PCT will end on [date of 65th birthday]. In accordance with the PCT’s Retirement Policy & Procedure, you have the right to appeal against this decision. If you wish to exercise this right, you must lodge your appeal in writing to the Director of Human Resources within fourteen calendar days of receipt of this letter. If you have any queries regarding the contents of this letter, please contact me on [phone number].

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I have enclosed two copies of this letter, please sign both copies retaining one for your own information and returning one to me. Yours sincerely Name Job Title Acknowledgement of Receipt I acknowledge receipt of this letter and have read and understood its contents. Signed: …………………..……………………… Date: ……………………

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Appendix 6 Template form – Appeal (Retirement Policy)

TO BE COMPLETED BY EMPLOYEE

Request for appeal must be received 14 days from receiving formal response from manager (or where no formal response is received from the manager, an appeal

must be lodged 21 days from the your meeting with your manager)

This is a formal appeal made under the Retirement policy where your application has been refused or you have not received a response from your manager within the

agreed time scale. Name: ………………………………………………….. Job Title: ………………………………………………….. Base: …………………………………………………… Full/Part Time: ……………………….…………………………..

APPEAL

If you are unhappy with the response given by your manager, please use the space below to explain how the original decision wa s unfair or did not follow procedure. Once completed, this should then be retu rned to the Human Resources Director. ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… …………………………………………………………………………………………………

Failure of the employee to attend the appeal hearing without adequate reason will result in the appeal being taken to be withdrawn.

I understand that if I provide inaccurate or false information about my appeal that this may lead to disciplinary action being taken against me.

Employee Name: ………………………………………………………… Employee's Signature: …………………………………………………… Date of Appeal Lodged : ….……………..

Please note - You have the right to be accompanied by a represe ntative in all formal meetings. It is your responsibility to arran ge representation for the dates given.

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Appendix 7 Template form – Appeal Feedback (Retirement Policy)

APPEAL MANAGERS FEEDBACK FORM

You must return this form to the member of staff, g iving notice of your

decision, within 14 days after the meeting at which you both discussed the appeal.

Employee details: Name: ……………………………………………… Job Title: …………………………………………… Base: ………………………………………………….. Full/Part Time: ……………………….……………..

DISCUSSION AT MEETING ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… …………………………………………………………………………………………………

MANAGERS DECISION Approved/declined:……………………………………………… Date of Change: (if applicable) ……………………………

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REASONS FOR DECISION

Please provide full details for your decision ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… Appeal Manager’s Name: ………………………………………………………… Appeal Manager’s Signature: …………………………………… Date of Decision: ….………………………….. cc: Employee

Human Resources

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APPENDIX 8

REVIEW OF GUY’S AND ST THOMAS’ CHARITABLE FUND RETIREMENT/LEAVING GIFT FUNDING

Previously Guy’s and St Thomas’ (GSTT) Charitable Foundation have provided a retirement gift scheme and contributions towards leaving parties for PCT staff who have worked with Community Health South London NHS Trust and its predecessors within Optimum Health Services NHS Trust or Lambeth Healthcare Trust or a combination. Following a review by the GSTT Charitable Foundation it intend to continue with the grants for leaving parties and change the retirement gift scheme to a long service award scheme. For legal reasons, GSTT also intends not to subsidise the long service award scheme for staff with 15-20 years service, however, Lewisham PCT proposes to continue this part of the scheme. It should be noted that service should be continuou s and the onus would be on the employee to provide evidence of at least one ye ar’s service with Community Health South London NHS Trust, Optimum He alth Services NHS Trust or Lambeth Healthcare Trust. Awards for 20 years and more will continue to be administered by GSTT. The awards have been revised as follows: Long Service Awards

Years of Service Award (pre-tax) Administered by

15 330 PCT 16 352 PCT 17 374 PCT 18 396 PCT 19 418 PCT

20-24 years and 364 days (employee must be leaving to receive

gift)

Silver Badge £500 Gift Vouchers

GSTT

25 years Gold Badge £600 Gift vouchers

GSTT

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The following process should be followed by staff who wish to claim their PCT long service award:

• For PCT awards for 15-19 years service an application form should be completed (see below) to be countersigned by the Associate Director or Head of Service or above, including copy confirmation of service with the appropriate Trust e.g. payslip, contract of employment etc. The form, with supporting documentation attached, is submitted to HR to be countersigned. This will then be paid through the PCT Payroll.

• For GSTT awards for 20 years service and above, please contact Anne

Rigby, Grants Manager, Guy’s and St Thomas’ Charitable Foundation on 020 7188 1227 or by e-mail: [email protected]

Please note that this scheme is separate to the PCT Long Service Award scheme for staff with 20 and 25 years NHS service. Grants for Leaving Parties These will continue to be administered by GSTT for Lewisham PCT employees who were previously employed for a minimum of 1 year without a break by its former incarnations such as Community Health South London, Optimum Health Services or Lambeth Healthcare Trust or a combination. The entitlements have been uplifted and the following applies:

Years of Service Award Administered by

10-15 £150 GSTT 16-20 £200 GSTT 21-25 £250 GSTT >25 £350 GSTT

Please note that party grants are not personal gifts to individuals. The Inland Revenue rules state that parties must be open to all eligible employees. If a leaving party is not held no grant is awarded – the money cannot be used for something else. Full information on eligibility and entitlements fo r both types of award is available on the GSTT website: https://www.gsttcharity.org.uk/grants/staff_2008.ht ml

A full review of all Long Service Awards will be co nducted shortly to ensure better consistency.

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APPLICATION FOR LONG SERVICE AWARD

15-19 YEARS SERVICE ONLY EMPLOYEE NAME: CONTINUOUS SERVICE CLAIMED: (Detail service in predecessor organisations including any breaks. Breaks of more than 3 months will invalidate service immediately preceding) EVIDENCE PROVIDED OF SERVICE IN ELIGIBLE ORGANISATI ON (Detail type e.g. payslip, contract, and attach a copy to form) I confirm that, to the best of my knowledge, the in formation contained on this form is accurate. EMPLOYEE SIGNATURE: DATE: CLAIM AUTHORISED BY (authorisation only on receipt of supporting documentation): Associate Director/ Head of Service Date: HR: Date:

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