RETIREMENT POLICY
Version / 9Name of responsible (ratifying) committee / HR Policy Group
Date ratified / 05 October 2017
Document Manager (job title) / Operational HR Manager
Date issued / 30 January 2018
Review date / 29 January 2020
Electronic location / Management/Human Resources Policies
Related Procedural Documents / N/A
Key Words (to aid with searching) / Retirement; long service; pension;
Version Tracking
Version / Date Ratified / Brief Summary of Changes / Author9 / 05.10.2017 / Update on financial and supplies procedure / HR Manager
8 / 09.10.2015 / General review and update / Operational HR Mgr
CONTENTS
QUICK REFERENCE GUIDE
1.INTRODUCTION
2.PURPOSE
3.SCOPE
4.DEFINITIONS
5.DUTIES AND RESPONSIBILITIES
6.PROCESS
7.RETIRE AND RETURN
8.TRAINING REQUIREMENTS
9.REFERENCES AND ASSOCIATED DOCUMENTATION
10.EQUALITY IMPACT STATEMENT
11.MONITORING COMPLIANCE WITH PROCEDURAL DOCUMENTS
APPENDIX 1: Request for Long Service Gratuity
APPENDIX 2: Reimbursement Of Catering Costs For Retirement Function
APPENDIX 3: Retirement Letter Request
EQUALITY IMPACT SCREENING TOOL
QUICK REFERENCE GUIDE
For quick reference the guide below is a summary of actions required. This does not negate the need for the document author and others involved in the process to be aware of and follow the detail of this policy.
- Where an employee has had long service in the NHS, at their retirement, the Trust wishes to recognise and reward that service. The policy provides a framework for such rewards.
- On retirement, the Trust provides a letter of thanks to all employees; a long service gratuity for those with over 20 years’ service, and funding towards a retirement function for those with over 10 years’ service.
1.INTRODUCTION
1.1Portsmouth Hospitals NHS Trust (“the Trust”) recognises that for many employees, on reaching retirement, they will have given many years of loyal service. The Trust would therefore wish to recognise and reward that service upon the employee’s retirement.
2.PURPOSE
2.1This policy contains a framework for rewarding employees on reaching retirement, where they have provided a period of long service.
3.SCOPE
3.1The policy applies equally to all employees of the Trust, irrespective of staff group. However it does not apply to bank or agency workers or volunteers.
3.2The Trust has a policy of positively recognising employee’s contribution to the Trust by making an award to long serving employees on their retirement. Even if the retiring employee has not had long service, the Trust would wish to thank any employee for their contribution. For long serving employees, the Trust provides a long service gratuity, funding towards the cost of a retirement function and a letter of thanks from the Chairman. Long service commences at ten years service for funding for a retirement function and twenty years service for a long service gratuity. All retiring employees will receive a letter of thanks from the Chairman, irrespective of their length of service
In the event of an epidemic infection outbreak, flu pandemic or major incident, the Trust recognises that it may not be possible to adhere to all aspects of this document. In such circumstances, staff should take advice from their manager and all possible action must be taken to maintain ongoing patient and staff safety.
4.DEFINITIONS
Long service – for the purposes of this policy, long service is defined as 10 years or more NHS service at the date of retirement.
Retirement – Employees who leave Trust employment with the intention of stopping work.
Retire and Return – NHS Pension Scheme allows members to take their accrued pension benefits and then request to return to work for the NHS.
5.DUTIES AND RESPONSIBILITIES
5.1Employees
Employees are responsible for:
- Advising their manager when they wish to retire, providing appropriate notice;
- Applying for their NHS pension (where applicable), and also providing the NHS Pensions Agency with the appropriate notice.
5.2Managers
Managers are responsible for:
- Completing the relevant Appendices (1/2/3) where applicable, to enable an employee to receive a long service gratuity, contribution towards catering costs at aretirement function and a letter of thanks.
5.3Human Resources
The Human Resources department is responsible for:
- Advising managers and employees on the application of the policy.
6.PROCESS
6.1Application for payment of NHS Pension
6.1.1Employees who have paid into the NHS Pension Scheme for over two years will be entitled to an NHS pension on retirement.
6.1.2Employees approaching their retirement date must contact the Pensions section within the Payroll Department at a minimum of four months prior to their retirement date, to notify them of their intention to retire. The Pensions section will then forward the relevant documents directly to the employee for completion as soon as possible.
6.1.3Where employees contact the Pensions section later than four months prior to their retirement date, this may result in payment of their pension being delayed.
6.2Long Service Gratuity for employees with over 20 years service at retirement
6.2.1Any employees who, on their retirement, have accrued 20 years service or more with the NHS will be eligible. Discretion may be used when counting service, but should then be authorised by the appropriate General Manager, Clinical Director or Executive Director.
6.2.2The gratuity will take the form of either a payment, or, should the employee who is retiring wish, a gift equating to the maximum monetary values as indicated below:
Number of years serviceNet monetary value (£)
20 – 29150
30 – 39250
40+500
6.2.3 The decision as to whether the employee receives a gift or cash alternative (which will be paid via Payroll) should rest with the retiring employee themselves. Payment of the gratuity or reimbursement for a purchased gift will be funded by the relevant manager’s budget and charged against the employee’s cost centre. The gratuity is liable to a tax deduction that will be calculated by the Payroll Department; the above amounts are those received by the employee, net of tax. Expenditure from the budget will be a gross payment. Gifts should be funded to a maximum of the net monetary value.
6.2.4In order to request payment of the gratuity, the line manager must complete the ‘Request for long service gratuity’ form at Appendix 1. The form must be forwarded to the Payroll Department at least four weeks prior to the employee’s retirement date. Payroll will then ensure that the appropriate payment is included in the employee’s final salary.
6.2.5Gifts should be ordered through the Supplies department by raising an IPROC requisition. . The Trust already receives a discount on orders over certain monetary values with some retailers and it is therefore recommended that managers liaise with Supplies for the purchase at the earliest opportunity.Supplies will also be able to advise on the purchase of gift vouchers
6.3 Retirement functions
6.3.1Contributions towards the cost of retirement functions will be funded by the appropriate manager’s budget and charged against the employee’s cost centre.
6.3.2Managers have the discretion to fund contributions as follows:
Number of years serviceContribution (£)
10 – 20Up to £100
Over 20Up to £200
Funds should only be used for catering purposes within the Trust and must be spent in a reasonable and economic manner. All receipts for catering should be retained and forwarded to the Finance Department for reimbursement, using the form in Appendix 2.
6.4 Chairman’s Letter of Appreciation
6.4.1At least two weeks ahead of the proposed retirement date, the manager should arrange for an official letter of appreciation to be sent from the Chairman of the Trust to the retiring employee. The form at Appendix 3 should be completed by the line manager, to advise the Chairman of the employee’s key service details. A letter will then be sent to the employee’s home address from the Chairman.
7.RETIRE AND RETURN
7.1NHS Pension Scheme rules allow members to take their accrued pension benefits and then request to return to work for the NHS. There is no guarantee that applications from staff to ‘retire and return’ will be granted.
7.2If an employee requests to ‘retire and return’, applications will be considered under the ‘Retire and Return’ Principles.
8.TRAINING REQUIREMENTS
7.1Managers will be briefed on the content of this policy and will be able to seek guidance and assistance on its implementation from the Human Resources Department.
9.REFERENCES AND ASSOCIATED DOCUMENTATION
NHS Pension Scheme – see for details
Department of Health – Re-employment of staff in receipt of NHS Pension Scheme benefits July 2017.
10.EQUALITY IMPACT STATEMENT
Portsmouth Hospitals NHS Trust is committed to ensuring that, as far as is reasonably practicable, the way we provide services to the public and the way we treat our staff reflects their individual needs and does not discriminate against individuals or groups on any grounds.
This policy has been assessed accordingly
Our valuesare the core of what Portsmouth Hospitals NHS Trust is and what we cherish. They are beliefs that manifest in the behaviours our employees display in the workplace.
Our Values were developed after listening to our staff. They bring the Trust closer to its vision to be the best hospital, providing the best care by the best people and ensure that our patients are at the centre of all we do.
We are committed to promoting a culture founded on these values which form the ‘heart’ of our Trust:
Respect and dignity
Quality of care
Working together
Efficiency
This policy should be read and implemented with the Trust Values in mind at all times.
11.MONITORING COMPLIANCE WITH PROCEDURAL DOCUMENTS
Minimum requirement to be monitored / Lead / Tool / Frequency of Report of Compliance / Reporting arrangements / Lead(s) for acting on RecommendationsConfirmation of length of Service / Human Resources / ESR / As requires / Policy audit report to:
- HR
Policy audit report to:
Policy audit report to:
This document will be monitored to ensure it is effective and to assure compliance.
Retirement Policy
Version: 9
Issue Date: 30 January 2018
Review Date: 29 January 2020 (unless requirements change)Page 1 of 12
APPENDIX 1: Request for Long Service Gratuity
REQUEST FOR LONG SERVICE GRATUITY
To: Transactional Human Resources team
c/o Cambridge House
QAH
NAME OF EMPLOYEE:
DEPARTMENT:
DATE OF RETIREMENT:
(Last day of service including annual leave etc.)
LENGTH OF NHS SERVICE:
Verified By : ......
(Human Resources Department - Signature)
Dr/Mr/Mrs/Miss/Ms/Prof……………………………….will be eligible to a payment of
...... (net of tax) in respect of ...... years’ service.
Please indicate if the individual is to receive a gift or cash via payroll, and confirm with the Finance Group Mailbox as this liable to a tax implication to ensure HM Revenue & Customs are paid the tax and national insurance that is due on these gifts/payments
Please ensure that this form arrives at Payroll Services in time to allow for inclusion in the final salary payment.
......
(Manager’s Signature)
£
Payroll Use Only:
Net Payment Required
Tax due on Payment
______
Gross Payment
______
Retirement Policy
Version: 9
Issue Date: 30 January 2018
Review Date: 29 January 2020 (unless requirements change)Page 1 of 12
APPENDIX 2: Reimbursement Of Catering Costs For Retirement Function
REIMBURSEMENT OF CATERING COSTS FOR RETIREMENT FUNCTION
From: Manager
To: Finance department
Cc: Human Resources Department
NAME OF EMPLOYEE:
DEPARTMENT:
DATE OF RETIREMENT:
LENGTH OF NHS SERVICE:
CONTRIBUTION:
All Catering isprovided by the Trust Catering Department. The costs of the retirement function will be funded by the budget holder and charged against the employee’s cost centre.
You must provide the catering department with the employee’s budget cost centre against which the charge will be made.
TO: CATERING DEPT
Please provide catering as agreed and charge this to the employee’s cost centre.
Account Code: ...... Cost Centre : ......
Signed: ......
(Budget Holder)
PrintName:......
Countersignature:......
Please note that the budget holder’s manager must also sign if the budget holder is the retiring employee.
Encs.
Retirement Policy
Version: 9
Issue Date: 30 January 2018
Review Date: 29 January 2020 (unless requirements change)Page 1 of 12
APPENDIX 3: Retirement Letter Request
RETIREMENT LETTER REQUEST
To: The Chairman
Portsmouth Hospitals NHS Trust
Trust Headquarters
F Level, QAH
I write to advise you that the employee named below is due to retire in the near future. Please would you write to this member of staff to acknowledge their service.
SURNAME:...... (MR/MRS/MISS/MS/DR/PROF)
FORENAME: ......
HOME ADDRESS: ......
......
......
RETIREMENT DATE: ......
LENGTH OF SERVICE:NHS: ......
PORTSMOUTH HOSPITALS:......
CURRENT POST AND DEPARTMENT:…......
DETAILS OF PREVIOUS POSTS: ......
......
......
ANY PARTICULAR ACHIEVEMENTS: ......
......
......
RELEVANT PERSONAL DETAILS: ......
......
......
OUTSIDE/LEISURE INTERESTS: ......
......
EQUALITY IMPACT SCREENING TOOL
To be completed and attached to any procedural document when submitted to the
appropriate committee for consideration and approval for service and policy changes/amendments.
Stage 1 - ScreeningTitle of Procedural Document: Retirement Policy
Date of Assessment / 15.12.17 / Responsible Department / Human Resources
Name of person completing assessment / Susie Lowe / Job Title / Corporate HR Manager
Does the policy/function affect one group less or more favourably than another on the basis of :
Yes/No / Comments
- Age
- Disability
- Ethnic Origin (including gypsies and travellers)
- Gender reassignment
- Pregnancy or Maternity
- Race
- Sex
- Religion and Belief
- Sexual Orientation
If the answer to all of the above questions is NO, the EIA is complete. If YES, a full impact assessment is required: go on to stage 2, page 2
More Information can be found be following the link below
Stage 2 – Full Impact Assessment
What is the impact / Level of Impact / Mitigating Actions
(what needs to be done to minimise / remove the impact) / Responsible Officer
Monitoring of Actions
The monitoring of actions to mitigate any impact will be undertaken at the appropriate level
Specialty Procedural Document: Specialty Governance Committee
Clinical Service Centre Procedural Document:Clinical Service Centre Governance Committee
Corporate Procedural Document:Relevant Corporate Committee
All actions will be further monitored as part of reporting schedule to the Equality and Diversity Committee
Retirement Policy
Version: 9
Issue Date: 30 January 2018
Review Date: 29 January 2020 (unless requirements change)Page 1 of 12