Retirement - Black Country Partnership NHS Foundation Trust
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Retirement Policy
Retirement
Target Audience
Who Should Read This Policy
All Trust Staff
Version 2.0 October 2018Retirement Policy Ref. Contents Page 1.0 Introduction................................................................................................................4 2.0 Purpose .....................................................................................................................4 3.0 Objectives..................................................................................................................4 4.0 Process .....................................................................................................................4 5.0 Procedures connected to this Policy .........................................................................9 6.0 Links to Relevant Legislation ....................................................................................9 6.1 Links to Relevant National Standards .......................................................................9 6.2 Links to other key policy/s .........................................................................................9 6.3 References ................................................................................................................9 7.0 Roles and Responsibilities for this Policy ............................................................... 10 8.0 Training ................................................................................................................... 10 9.0 Equality Impact Assessment ................................................................................... 11 10.0 Data Protection and Freedom of Information .......................................................... 11 11.0 Monitoring this policy is working in practice ............................................................ 11 Appendices Flexible Retirement Application Form................................................................................ 12 Application for Retirement Gift........................................................................................... 13 Version 2.0 October 2018 2
Retirement Policy 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 2.0 October 2018 3
Retirement Policy 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 Retirement Age The Trust does not operate a mandatory retirement age, therefore, the decision about whether to retire is a matter of each individual employee. 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. 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. 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. Version 2.0 October 2018 4
Retirement Policy 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. 4.1.2 2008 NHS Pension Scheme All new eligible NHS workers from 1 April 2008 will join the 2008 Section of the 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. 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 Tax implication There may be some tax implications for staff and therefore we would advise that staff seek independent financial advice from an approved financial advisor prior to making any decisions relating to your retirement. 4.1.4 Special Class Status There are people in certain staff groups with Special Class Status i.e. MHO status - Mental Health Nurses, who were members of the NHS Pension Scheme before 6 March 1995 and who have qualifying service. They can retire with full pension benefits from age 55 although the same conditions with regard to retirement before age 55 still apply. Special Class Status is no longer granted to new entrants to the Scheme on or after 6 March 1995. Re-entrants to Special Class type employment retain the status in the Scheme if they do not have a break in pensionable scheme membership of 5 years or more. 4.1.5 NEST (National Employment Savings Trust) With effect from 1st May 2013, under the Government’s Pension Reforms the Trust are required to Auto-Enrol staffs 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 4.2.1Notice Requirements Where an employee is intending to retire under the provisions of the NHS Pension Scheme, whether taking normal age retirement or voluntary early retirement, it is necessary for the member of staff to provide at least 4 months notice (or their contractual notice if this is greater), in writing, of their intention to retire, in order to ensure that the relevant documentation is processed for calculation of final pension figures and to arrange payment. Non-Pension Scheme Members should give their contractual notice. 4.2.2 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. Pensions have up to a calendar month to pay the lump sum. Any queries regarding these payments should be addressed to the Payroll department. Version 2.0 October 2018 5
Retirement Policy
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 department at least 4
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 4 weeks’ notice of termination irrespective of service
Band 7 period of notice 8 weeks’ notice of termination irrespective of service
Band 8-9 period of notice 12 weeks’ notice of termination irrespective of
service
It is recommended that a minimum of 4 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 and provide a copy of the Leaver’s questionnaire. The
manager will also be responsible for updating the Electronic Staff Record System (ESR),
notifying the Divisional Human Resources Advisor by sending an electronic copy of the
resignation letter and completing the Termination form for the attention of the payroll
department/Workforce/Personal File.
The payroll department will process all the necessary paperwork for terminating the
employee’s employment and arrange to make any outstanding payments.
On receipt of the termination form, the payroll department will forward any documentation
relating to the retirement process.
For all retirements the NHS Pensions Agency require the completed application form to
be received at the NHS Pensions Agency at least 4 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 4 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
the Line Manager 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.
Version 2.0 October 2018 6Retirement Policy
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.
4.2.3 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.
4.2.4 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 4 weeks’ notice of termination irrespective of service
Band 7 period of notice 8 weeks’ notice of termination irrespective of service
Band 8-9 period of notice 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 completing
the Termination form and confirm any outstanding annual leave. Termination form will
then need to be sent to the Payroll department (white copy to Payroll, Yellow copy to HR
department for the attention of Workforce and pink copy placed onto employee personal
file).
The payroll department will process all the necessary paperwork for terminating the
employee’s employment and arrange to make any outstanding payments.
4.3 Flexible Retirement Options
Request to Wind down, Step Down, Draw Down
4.3.1 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.
4.3.2 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
Version 2.0 October 2018 7Retirement Policy there is a suitable role to step-down into. Please note pay protection will not apply. 4.3.3 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. 4.3.4 Retire and Return Employees wishing to continue working after receiving their NHS pension, need to complete the application form in appendix 1 of this policy and submitted to their line Manager no later than 4 months before the date of retirement. There is no automatic right to return to your original or another role. Individuals must therefore discuss this option with their manager and any approval must be agreed by the General Manager. The Trust cannot guarantee to offer individuals the same hours or role when they return to work. You must therefore discuss this option with your manager prior to requesting a retire and return. All staffs retire and returning must have a mandatory 2 week break between retirement and returning to work, where upon return will be issued with a new Contract of Employment. Managers are required to advise the recruitment team of all Retire and Returns in order for the Contract of Employment to be processed. 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. 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 2). An award must be in the form of a cheque and will be charged to the appropriate Version 2.0 October 2018 8
Retirement Policy
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
Grievance Policy
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
Agenda for Change Terms and conditions Handbook (2018).
http://www.nhsemployers.org/~/media/Employers/Documents/Pay%20and%20rew
ard/AfC_tc_of_service_handbook_fb.pdf
Medical and Dental Terms and Conditions of Service (2013)
http://www.nhsemployers.org/~/media/Employers/Documents/Pay%20and%20reward/Te
rms_and_Conditions_of_Service_NHS_Medical_and_Dental_Staff_300813_bt.pdf
ACAS Retirement Rights www.acas.org.uk
Version 2.0 October 2018 9Retirement Policy
7.0 Roles and Responsibilities for this Policy
Title Role Responsibilities
Director of Workforce - Lead responsibility for the implementation of this policy
Executive Lead - 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
- 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
- Oversee the implementation of a systematic and consistent approach
Workforce
Responsible - Approve all policies and procedures that relate to their subject matter or area of practice
Committee
- Provide exception and progress reports to the Quality and Safety Steering Group
- Support, if required, the employee and Manager in the application of this policy
Human Resources Guidance and
- Responsible for distributing and communicating this policy to employees and managers and will take measures to actively
Department Support
enforce it
- Responsible for the equitable implementation of this policy and for ensuring that all employees are aware of their
responsibilities under it
Line Managers Operational - 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) Is this training covered in the
Which staff groups Trust’s Mandatory and How often will Who will ensure and
of this policy will If no, how will the Who will deliver the
require this Specialist Mandatory Training staff require monitor that staff have
require staff training be delivered? training?
training? Need Analysis document? training this training?
training?
None N/A No, however employees can N/A N/A N/A N/A
contact Pensions Services for
advice on their pension and
discuss options with their line
manager
Version 2.0 October 2018
10Retirement Policy
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 bcpft.equalityimpactassessment@nhs.net
10.0 Data Protection and Freedom of Information
Data Protection Act provides controls for the way information is handled and to gives legal rights to individuals in relation to the use of their data. It
sets out strict rules for people who use or store data about individuals and gives rights to those people whose data has been collected. T he law
applies to all personal data held including electronic and manual records. The Information Commissioner’s Office has powers to enforce the Data
Protection Act and can do this through the use of compulsory audits, warrants, notices and monetary penalties which can be up to €20million or
4% of the Trusts annual turnover for serious breaches of the Data Protection Act. In addition to this the Information Commissioner can limit or stop
data processing activities where there has been a serious breach of the Act and there remains a risk to the data.
The Freedom of Information Act provides public access to information held by public authorities. The main principle behind freedom of information
legislation is that people have a right to know about the activities of public authorities; unless there is a good reason for them not to. The Freedom
of Information Act applies to corporate data and personal data generally cannot be released under this Act.
All staffs have a responsibility to ensure that they do not disclose information about the Trust’s activities; this includes information about service
users in its care, staff members and corporate documentation 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 releva nt legislation applies.
The Information Governance Team provides a central point for release of information under Data Protection a nd Freedom of Information following
formal requests for information; any queries about the disclosure of information can be forwarded to the Information Governan ce Team.
11.0 Monitoring this policy is working in practice
What key elements will be Where How will they be Who will Group/Committee Group/Committee Evidence
How
monitored? described in monitored? undertake this that will receive and to ensure actions this has
Frequently?
(measurable policy objectives) policy? (method + sample size) monitoring? review results are completed happened
Termination reasons and 4.2.2 Audit of termination Human Resources Quarterly Workforce Workforce Completed
answers within the Exit contract forms and Exit Department Committee Committee action plan
questionnaire questionnaires signed off /
minutes of
meeting
Version 2.0 October 2018
11Appendix 1
Flexible Retirement Application Form
To be completed by employee (sent to Line Manager)
Name:
Personal Number: DOB:
Department: Division:
Date of proposed retirement:
Date of proposed re-appointment (if applicable):
Are you a member of the NHS Pension Scheme: Yes/No (delete as appropriate)
Type of Flexible Retirement requested:
Wind Down Step Down Draw Down Retire and Return
Draw Down (2008 and 2015 section members only)
Late retirement enhancement (2008 and 2015 section members only)
Signed: Date:
To be completed by Manager (complete A or B as appropriate)
I have discussed the above employee’s request with him/her on ……………… (date) and have
advised him/her to seek independent financial advice when considering this request.
a) The above employee’s request to take Flexible Retirement has been agreed with effect
from: …………………………………(Date)
Job Details: …………………………………………. Band: …………………………..
Hours/Day:…………………………………………..
Signed: ………………………………………………
Managers Name:……………………………………. Date:………………………………
b) It is not possible to meet the employee’s request due to:
Reason:………………………………………………………………………………………………………
………………………………………………………………………………………………………………..
Date employee informed of the decision: ………………………………………….
Version 2.0 October 2018 12Appendix 2
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.
Finance Dept use only:
Cheque sent to Manager: ………………………… (Date)
Certificate sent to Manager: ………………………… (Date)
PLEASE FORWARD THIS FORM TO THE FINANCE DEPARTMENT, DELTA
HOUSE.
Version 2.0 October 2018 13Retirement Policy
Policy Details
Title of Policy Retirement Policy
Unique Identifier for this policy BCPFT- HR-POL-07
State if policy is New or Revised Revised
Previous Policy Title where applicable N/A
Policy Category
Human Resources
Clinical, HR, H&S, Infection Control etc.
Executive Director Director of Workforce & Organsational
whose portfolio this policy comes under Development
Policy Lead/Author Head of Workforce
Job titles only
Committee/Group responsible for the
Workforce Development Committee
approval of this policy
Month/year consultation process
completed *
January 2019
Month/year policy approved August 2019
Month/year policy ratified and issued August 2019
Next review date August 2022
Implementation Plan completed * Yes
Equality Impact Assessment completed * Yes
Previous version(s) archived * Yes
Disclosure status ‘B’ can be disclosed to patients and the public
flexible retirement, pension, age, wind down,
Key Words for this policy
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
V2.0 Oct 2018 Policy fully reviewed, revised all Committees and Responsibilities
linked to executive lead; Retire and Return guidance/Application
form added and overall re-formatted/alignments.
V1.0 Oct 2015 New policy for BCPFT, alignment of policies following TCS
Version 2.0 October 2018 13You can also read
