SIX TOWN HOUSING
PLANNED RETIREMENT
- Statement of Intent
1.1.Age discrimination regulations came into effect in October 2006. These regulations draw a distinction between “planned” and “unplanned” retirement for the purposes of dismissal law.
1.2.Retirement of an employee is now included as a potentially fair reason to dismiss and therefore covered by dismissal law. Dismissal law requires that a clear and defined process is followed to ensure that it is fair, hence the distinction between unplanned and planned retirement. “Unplanned” will be deemed unfair dismissal, “planned” fair dismissal.
1.3.This policy sets out the process to be followed to ensure that all dismissals are fair (or “Planned”).
1.4.This policy aims to be based upon business needs, whilst balancing the needs of employees by offering individuals approaching retirement age as much choice as possible.
- Guiding Principles
2.1.The default retirement age of 65 remains within Six Town Housing. It does not constitute age discrimination to retire someone at 65. It will not be unfair to dismiss an employee for a genuine retirement, provided the proceduralrequirements and consideration for continuing employment have beenapplied.
2.2.Preparation is vital. Observance of this procedure will ensure accurate andfair retirement of employees.
2.3.A manager should make themselves aware of those staff members who are approaching normal retirement age, and stay in touch with their intentions. This supports the organisations genuine intention to manage Planned Retirement.
2.4.At age 64 managers and employees will need to consider the planned approach to retirement to ensure that the dismissal at 65 will be fair.
2.5.A planned approach includes writing to the employee at least six months before the 65th birthday giving notice of the retirement.
2.6.The employee has the right to be considered for continuing employment beyond this age. The employer has a duty to consider such requests.
2.7.Issues relating to an employees retirement should be handled with particular sensitivity and that the employee’s choices are considered and incorporated into any decisions.
Planned Retirement
- One Year before Retirement Date or Employee Announces Intention to Retire:
3.1.The Manager is to have an informal discussion with the employee concerning their intention to retire. This could be undertaken at the same time as an Individual Performance Review, but needs to be conducted on around the 64th birthday.
3.2.If the employee is discussing retirement on the grounds that they havereached 65, discuss with the employee the right to have the request to workbeyond this age considered. An indication of the employee’s intention may inform future planning of the department, although no decisionsshould be made at thisstage.
3.3.Ask the member of staff whether they have any particular worries which you, the manager may support (e.g. by acquiring more detailed information on the employee’s superannuation rights or by talking through problems of a more personal nature, whether financial or emotional).
3.4.Advise the employee of the availability and the content of pre-retirement courses and ascertain whether they wish to attend. Employees attending such courses are entitled to paid leave and reimbursement of any excess travelling expenses incurred.
3.5.Provide the employee with details of flexible retirement options for their consideration in planning for their retirement.
- Between 6 – 12 months prior to impending retirement
4.1.The Human Resource Manager will write to the employeegiving notice of the impending retirement, confirming the retirement date.
4.2.Employers have an ongoing duty to issue this notice and in not doing so, will delay the employees retirement date.
4.3.Include within the letter the right to request to work beyond the age 65, and the right to have this request considered.
4.4.The employee is requested to respond to this letter in writing giving no less than three months notice before retirement date, in order that planning for the retirement or continued employment can take place.
4.5.The letter is to state the request to continue to work beyond the retirement date. The request is to propose that employment continues for a stated period / until a stated date. The request should be stated in periods of no more than 12 months at a time.
- Working beyond age 65
5.1.In all cases where an employee is considering working beyond age 65 the employee is advised to contact their Pension provider and to seek independent financial advice.
- Managing requests to work beyond age 65
6.1.The legislation does not require the employer to provide a reason for rejecting a request to work beyond age 65. However our employment policies are designed to achieve openness of communication between employees and managers, and this policy should be treated no differently.
6.2.Managers are required to positively consider requests from employees who wish to work beyond age 65.
6.3.The reasons for refusing a request to work beyond age 65 will be based such factors as capability, performance, attendance and the future anticipated needs of the organisation.
6.4.The line manager and the Head of Human Resources and Organisational Development will meet with the employee within 28 days of receiving the request. Employees can choose to be accompanied by a work colleague at this meeting.
6.5.The decision reached is to be given in writing within 14 days of the above meeting, including detail of the right to appeal and confirming the retirement date if the request has been rejected
6.6.Where the employer has followed the requisite procedure as laid out in the policy, the employee will have been dismissed for a fair reason, namely retirement. The burden of proving the dismissal was for some other reason then falls to the employee.
- Appeals against requests to work beyond 65
7.1.An employee can appeal against the decision not to permit working beyond age 65.
7.2.The appeal must be made in writing to the Head of Human Resources and Organisational Development.
7.3.An appeal hearing, involving the Manager and Director of Resources will be held within 14 days of receipt of the appeal notice.
7.4.Employees can be accompanied by a work colleague at this hearing
7.5.The decision will be notified in writing within 14 days of the meeting.
- Four Months Prior to Retirement:
8.1.Meet with the employee to ensure that they are not worrying unnecessarily about any issues that the line manager could offer support in.
8.2.The manager to conduct an exit interview with the employee and send to the Human Resource Team.
- Managing employment that has continued beyond age 65.
9.1.Continuing employment beyond age 65 will be reviewed regularly by the line manager in order to assess the continuation of employment.
9.2.The principles of this Planned Retirement policy should be applied, within the stated timeframes (e.g one year in advance of the retirement date – see section 3 onwards) once the need for continued employment is no longer appropriate, or the planned date for retirement is reached whichever is sooner.
J.RutterPage 117/10/2018