Flexible Retirement Policy
1
Table of Contents
Policy Scope and Purpose .............................................................................................................. 2
2
Policy Detail..................................................................................................................................... 3
3
Related Policies .............................................................................................................................. 6
4
Related Procedures ........................................................................................................................ 7
5
Related Processes .......................................................................................................................... 7
6
Monitoring and Performance of the Policy ...................................................................................... 7
7
Policy sign-off and ownership details .............................................................................................. 7
8
Revision History .............................................................................................................................. 8
9
Appendix 1 - How to Apply for Flexible Retirement ........................................................................ 8
11
Appendix 2 – Applying for Flexible Retirement - Flow Chart ........................................................ 11
12
Appendix 3 - Letter to Successful Applicant ................................................................................. 12
13
Appendix 4 - Letter to Unsuccessful Applicant ............................................................................. 13
Owner: HR Division
Author: Jeff Clements
Document ref, FRP JVGC 19.07.2011
Page 1 of 13
1
Policy Scope and Purpose
The existing Flexible Retirement Policy has been
developed and amended and also replaces the Age
Retirement Policy in response to changes in equality
regulations and changes in pension scheme provisions.
Scope and Purpose:
The University values the knowledge, skills and
experience of all its employees and recognizes the
benefits that flexible retirement may have for both the
employee concerned and the University as a whole.
As an alternative to any Voluntary Severance scheme in
operation the University has agreed to operate a flexible
retirement scheme for employees in the pension
schemes.
There is no right to flexible retirement and each
application will be considered on its individual merit in
light of service delivery needs, the benefits to the
University of the retirement and the overall cost to the
pension fund and the University.
Implications of non adherence
Start point of the Policy:
End point to the Policy
Any retirement based on employee age would breach the
Age Regulations 2011 and or the Equality Act 2010 and
could lead to employment tribunal claims of unfair
dismissal or age discrimination.
A member of staff who wishes to be considered for
flexible retirement must complete an application form and
submit to their line manager no later than three months
before the requested implementation date.
An application with the recommendation of a Head of
School / Associate Director of Professional Service will
require the approval of the Director of Finance and the
Executive Director of Human Resources. Their decision
is final and there is no right of appeal.
Compliance and Regulatory
requirements:
The Employment Equality (Repeal of Retirement Age
Provisions) Regulations 2011 and the Equality Act 2010.
The University has ultimate discretion in its operation and
application.
Who uses this process:
Applies to all staff employed by the University of Salford
who are members of either the University
Superannuation Scheme (USS), the Teachers Pension
Scheme (TPS) or the Local Government Pension
Scheme (LGPS).
Roles and Responsibilities:
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Author: Jeff Clements
Document ref, FRP JVGC 19.07.2011
HR Division in conjunction with Payroll, all Schools,
Colleges and Professional Services Directorates.
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2
Policy Detail
Flexible Retirement Policy
1. Introduction
The Employment Equality (Repeal of Retirement Age Provisions) Regulations 2011, better
known as the abolition of Default Retirement Age (DRA), came into force on 6th April (to be
effective from 1st October 2011). These regulations:
 Abolish the DRA of 65 which was the basis of the University’s previous policy on
retirement.
 Make Transitional Provisions for employees who turn 65 between 6th April and 30th
September 2011
 Provide for Employer Justified Retirement Age if the employer chooses one that can be
justified objectively as a proportionate means of achieving a legitimate aim.
2. What is a Flexible Retirement?
Employees who are granted flexible retirement will be able to receive immediate payment of their
pension benefits whilst continuing to work for the University on reduced hours and/or in a less
senior position (depending on the pension scheme). Retaining employees in this way will allow
the transfer of skills and experience to their work within their teams and area. It may also enable
employees who wish to relinquish their current level or responsibility to do so without having to
leave the University‘s service. This option cannot be used to facilitate job share as a financial
saving has to be made.
It should be noted the Flexible Retirement provisions will be subject to review in light of any
further changes to the pension scheme arrangement /tax rules.
3. Who is this policy aimed at?
This policy is aimed at:
 current and future employees approaching the retirement stage of their careers,
 those whose retirement is deferred to this date or after.
The retirement stage will normally be reached when an employee has access to his/her
occupational pension benefits or state pension benefits or both
4.
The University’s approach to employee retirement
The University of Salford has decided not to adopt an Employer Justified Retirement Age
approach, but instead to adopt a flexible retirement policy approach, which is in line with current
legislation and good practice. The adoption of a flexible retirement policy is considered to be:


fairer and more conducive to employee wellbeing and performance at work when
approaching the retirement stage
will not need to justify a fixed retirement age for a section of, or all of its employees
which are permissible within the Regulations
Owner: HR Division
Author: Jeff Clements
Document ref, FRP JVGC 19.07.2011
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
employees will be able to choose when to retire, in agreement with the University, rather
than be compelled to retire at a certain age
It may be possible for an employee to continue working or to work fewer hours or indeed in a less
demanding role while drawing on their pension(s). The co-operation between the employer and
employee would provide the latter with an opportunity to retire in stages, if they so wish, and the
former with a better opportunity to plan to meet its workforce needs.
Open and confidential discussion between an employee and their line manager about the
employee’s future plans, conducted in an atmosphere of trust can help facilitate the transition
from work to retirement for both the individual and the University
In terms of employment legislation, retirement is a form of fair dismissal following fair procedures.
From 1st October 2011 any age-related dismissal will constitute direct age discrimination, where
objective justification cannot be provided (e.g. work related performance) under the Equality Act
2010 and the Regulations 2011.
The University’s agreement to the employee’s choice of when to retire will be subject to the
business needs of the University and the employee’s performance in their given role.
5. Flexible retirement provided by Pension Schemes
Flexible retirement will work for the benefit of the employees in relation to their occupational
pension scheme, and if they are not member of one, in relation to an employee’s access to the
State Pension. Flexible retirement is already operated successfully in the University in
conjunction with the Teacher’ Pension Scheme (TPS) and Local Government Pension Scheme
(LGPS).
Each Pension scheme has its own rules.

TPS members have to reduce their pay or working hours, maximum of two phased
retirements

LGPS members can reduce either pay or hours or both

USS members have to reduce their pay and hours by at least 20% and require two
months notice. The maximum reduction allowed by USS is 80%.
To enable consideration of their flexible retirement request, employees will be required to reduce
either their income or hours as indicated by the pension scheme rules. The University has
absolute discretion in agreeing requests. Critical in considering an application would be the
resource implications of any decision. Examples of this include workload being compressed into
the new proposed hours of work; reallocation of work to existing staff members with no net
additional cost; successful recruitment to the proposed vacant element of the role with no
additional net increase in cost. Fundamentally therefore, cost effectiveness of any proposed new
arrangement that would facilitate flexible retirement is key.
Flexible retirement may be granted to employees over the age of 55 for all pension scheme
members.
Employees who are granted flexible retirement will be able to receive immediate payment of their
pension benefits whilst continuing to work for the University on reduced hours and/or in a less
senior position. It may also enable employees who wish to relinquish their current level of
responsibility to do so without having to leave the University’s service
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Author: Jeff Clements
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The pension benefits payable on flexible retirement will be based on the employee’s actual
service at the implementation date. The benefits will be actuarially reduced if the employee does
not meet:
In TPS, the normal retirement age of 60
In LGPS, the scheme normal retirement age
In USS, the normal retirement age of 65*
*Employees with employment contracts issued before 1st October 2006 will have a contractual
pension age of 60. All contracts issued from 1st October 2006 onwards will have a contractual
pension age of 65. USS uses this when deciding normal retirement age and subsequent early
payment reductions. All USS membership accrued from 1st October 2011 onwards will have a
normal retirement age of 65. Members at 1st October 2011 who are at least aged 55 and who
have a contractual pension age of 60 will retain it for all membership. All other members will
retain age 60 for membership up to 30 September 2011 only. Members who joined after 1st
October 2006 will not be affected as all of their membership has a normal retirement age of 65.
The Pensions Officer will be able to provide up to-date information on pension benefits, or you
may refer to your pension scheme’s website:
Teachers Pension Scheme:
http://www.teacherspensions.co.uk/index.htm
The Local Government Pension Scheme:
http://www.gmpf.org.uk/2014/retiring/flexible.htm
Universities Superannuation Scheme:
http://www.uss.co.uk/Pages/default.aspx
6. The University Discretion on Flexible Retirement
The early release of pension benefits and working beyond the State Pension Age has financial
implications for the University and the early release of pension benefits could cause a strain on
the university’s pension funds. The university could waive any actuarial reductions on
compassionate grounds and reserves the right to do so. This would be at a cost to the
University. In these circumstances, every case will be decided on its individual merits.
Any strain on the pension fund (and subsequent cost to the University) must be mitigated by the
salary saving over the expected future service period in order for consent to be given in any
particular case.
Similarly, when an employee reaches State Pension Age and wishes to continue to work, their
requirement to pay National Insurance contributions ceases. However, the University is required
to pay an increased rate of National Insurance (12.8% instead of 9.1%) for all employees who
remain contributors to an occupational pension scheme. The University will have to satisfy itself
in each case that its business needs are being met. The consideration of the University’s
business needs for staff will also include their performance in the role and shortage of skills or
expertise in that area too. Employees who are granted flexible retirement remain in the pension
scheme and build up further pension benefits based on their reduced hours/salary. This means
that when the employee ceases to work altogether they will start to receive a second set of
Owner: HR Division
Author: Jeff Clements
Document ref, FRP JVGC 19.07.2011
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pension benefits based on their subsequent period of service. (LGPS members can elect to opt
out of the pension scheme at the date of flexible retirement and not rejoin the pension scheme)
The University will exercise its discretion with a view to all its duties in line with the Equality Act
2010 as well as the Regulations 2011 and from best practice advice in the HEI sector.
7. Implications for Employment Conditions when flexibly retiring
Employees will be required to sign new contracts of employment to reflect the agreed reduction
in hours/grade and any revised duties or working arrangements.
Employees who have flexibly retired may not subsequently apply for positions that would result in
either an increase in hours or being paid at a higher grade.
Apart from general pay award and incremental progression (if appropriate), no payment will be
made for additional hours worked (including overtime) or additional duties undertaken
(honoraria/acting up). Any additional hours worked by the employee by agreement with
management would be taken as compensatory time off in lieu (TOIL).
Continuity of service will be preserved for entitlement to annual leave, sick leave etc, but will be
calculated on the reduced hours/pay as appropriate.
Should the employee wish to retire from the University’s service completely, they will be required
to give the University notice in writing. The length of the notice will be stipulated in the contract
of employment.
The University’s normal employment procedures and practices will continue to apply.
8. How to apply for Flexible Retirement
This policy will not affect those employees who continue to work on the basis of flexible
retirement agreed with them prior to this date. Further details of how to apply for flexible
retirement and the stages of that together with the application form is in appendix 1 of this policy.
9. Review of the Flexible Retirement Policy
The implementation of this policy will be monitored and the policy reviewed 12 months from its
full operation or earlier if appropriate.
3
Related Policies
Policy Name
Location
Avoidance of Redundancy/Redundancy Policy
and Procedure
Voluntary Severance Scheme
HR Web-site. Link: http://www.salford.ac.uk/hr
Restructuring Principles Policy and Procedure
HR Web-site. Link: http://www.salford.ac.uk/hr
Redeployment Principles policy and Procedure
HR Web-site. Link: http://www.salford.ac.uk/hr
Owner: HR Division
Author: Jeff Clements
Document ref, FRP JVGC 19.07.2011
HR Web-site. Link: http://www.salford.ac.uk/hr
Page 6 of 13
All listed and related documents can be found on the HR website. When any changes in process are
being considered, this section should be referred to in order to determine the implications on for
associated policies
4
Related Procedures
Procedure Name
Procedure Owner (include name and position
within the University)
HR Web-site. Link: http://www.salford.ac.uk/hr
Avoidance of Redundancy/Redundancy Policy
and Procedure
Restructuring Principles Policy and Procedure
HR Web-site. Link: http://www.salford.ac.uk/hr
Redeployment Principles policy and Procedure
HR Web-site. Link: http://www.salford.ac.uk/hr
All listed and related documents can be found on the HR website. When any changes in policy are
being considered, this section should be referred to in order to determine the implications on
associated procedures.
5
Related Processes
Process Name
Location
All listed and related documents can be found on the HR website. When any changes in policy are
being considered, this section should be referred to in order to determine the implications on
associated processes.
6
Monitoring and Performance of the Policy
Records:
The record of agreement and revised contract of
employment will be recorded on the University's HR
payroll system and on the employee’s personal file.
Monitoring application of the Policy:
The policy application will be monitored by HR and
regular reports of employee numbers granted flexible
retirement will be produced.
Performance Indicators:
Training and Support for the Policy:
7


Staff retiring flexibly in line with the policy
Number of complaints or claims of age
discrimination

HR and Finance will provide training and ‘toolkits’ for
managers on the application of the policy and the
handling of flexible retirement requests.
Policy sign-off and ownership details
Document name:
Owner: HR Division
Author: Jeff Clements
Document ref, FRP JVGC 19.07.2011
Flexible Retirement Policy 2011
Page 7 of 13
Version Number:
3
Status:
Draft
Equality Impact Assessment:
In the process of completion
Approved by:
Effective from:
Executive Director of HR
Pension Officer, Finance Division
1/10/2011
Date for Review:
October 2012-March 2013
Author:
Jeffrey Clements – HR Manager
Rachel Nield - Pensions Officer
Owner:
Keith Watkinson, Executive Director, HR Division
Director of Finance
Document control:
All printed versions of this document are
classified as uncontrolled. A controlled version of
this document is available from Human
Resources or in the ‘HR Documents’ section of
the Staff Channel. Questions on this process
should be initially directed to HR Reception on
0161 295 2121 or HRadvice@salford.ac.uk
8
Revision History
Release
Number
1
2
3
9
Date
Revision description
Author
October
2009
April 2011
New Policy
Director of Finance
Updated to include USS provisions
Acting Director of Finance
August
2014
Updated to include changes to
LGPS
Pensions Officer
Appendices
Appendix 1 - How to Apply for Flexible Retirement
Stage 1
An employee who wishes to be considered for flexible retirement must complete the Application for
Flexible Retirement Form (Which can be found on the HR website) and submit it to their line manager
no later than 3 months before the requested implementation date. This will allow sufficient time for
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Author: Jeff Clements
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the application to be fully considered and, if approved, for contractual changes to be made and
pensions implemented.
The line manager is required to comment on whether or not the application should be favourably
considered. They are also required to confirm how operational needs would be affected and what
would be done to minimise disruption to the service and colleagues.
The HR Services Team should be asked to obtain an estimate of the pension benefits and costs from
the Pensions Officer for the employee and management.
In considering the request, the Head of School/ Associate Director of Professional Services must be
satisfied that:





There are clear benefits to the University from the flexible retirement
There is no detrimental effect on service delivery/budgets.
The arrangement proposed is fair and equitable to other team members
If appropriate, that there are suitable job(s) available within the service area at a lower grade.
Supports mitigation in terms of redundancy, where possible
If the Head of School/Associate Director of Professional Services is able to support the application
then the completed form should be submitted, along with recommendations to the Dean/Director of
Professional Services for consideration . The Dean/Director of Professional Services can then
discuss the application with the Director of Finance and Executive Director of Human Resources. The
form is then submitted to the Director of Finance and Executive Director of Human Resources for
approval. The decision of the Director of Finance and Executive Director of Human Resources is final
and no action should be taken to progress the flexible retirement until approval has been received.
If the Head of School/Associate Director of Professional Services is unable to support the application
then the employee should be informed accordingly with the reasons in writing (Appendix 4). The
employee will have the right to have his/her case reviewed by the Director of Finance and Executive
Director of Human Resources. This will be a paper review of the documentation. In this case the
documentation with comments should be forwarded to the HR Services Team who will arrange for the
application to be submitted to the Director of Finance and Executive Director of Human Resources.
The employee may provide additional written information if he/she wishes. A decision will be taken
within 15 working days of receipt of the application and the applicant advised in writing. The decision
of the Director of Finance and Executive Director of Human Resources will be final. In the event of
the application not being successful the applicant will be able to resubmit 12months from the date of
this notification.
Stage 2 - Approval
The application, with the recommendation of the Head of School/Associate Director of Professional
Services, should be submitted to the Director of Finance and Executive Director of Human Resources
for approval. They will ensure consistency of approach across the University. Their decision is final
and there is no right of appeal. In the event of the application not being successful at this stage the
applicant will be able to resubmit 12months from the date of this notification.
Stage 3 – Follow-up
If the flexible retirement is approved then the HR Division will prepare a new contract of employment
to be issued and signed by the employee. The HR Services Team (in liaison with the Pensions
Officer) will write to the employee about the pension arrangements and seek confirmation from the
employee of their wish to elect to draw their pension benefits. The flexible retirement will not be
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Author: Jeff Clements
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implemented until all the necessary documents have been completed by the employee and returned
to the University i.e. contract of employment, pensions election form.
The application of the flexible retirement scheme will be monitored by the Pensions Officer and the
Director of Finance and Executive Director of Human Resources on a regular basis. A quarterly
report on numbers of applicants and total costs will be submitted to Executive Committee.
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Author: Jeff Clements
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Appendix 2 – Applying for Flexible Retirement - Flow Chart
Member of staff applies for flexible retirement. Completes and signs application form.
(Section 1, 2a, 2b, 2c, 3, 4). Submits to Line Manager.
Line Manager considers operational needs. Consults HR Business Partner and makes
recommendation (completes Section 5) – forwards the form to the Head of School / Director
of Professional Service.
Head of School / Director of Professional Services (completes Section 6) and makes
recommendation. Signs and returns form to HR Services Team. HR Services Team liaises with
Pension Officer to obtain pension calculations. HR Services Team forward form to Director of
Finance and Executive Director of HR for decision
Director of Finance and Executive Director of HR (complete section 7 and 8) and consider
application.
Unsuccessful
Recommended
HR Services Team writes to applicant
(c.c. Pensions Officer, Head of School /
Head of Professional Service)
HR Services Team writes to applicant (c.c. Head of School / Head of Professional Service,
Pensions Officer)
New working arrangements confirmed
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Author: Jeff Clements
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Appendix 3 - Letter to Successful Applicant
Ref: Successful Application for Flexible Retirement
Private & Confidential
Dear
Application for Flexible Retirement
Thank you for your application for Flexible Retirement. The University has given careful consideration
to your application.
I am pleased to inform you that your application fulfilled the criteria and you have been successful on
this occasion.
The HR Services Team and the Pensions Officer will be contacting you in the near future to confirm
the arrangements and contractual details.
Yours sincerely
HR Services Team
c.c. Pensions Officer, Head of School / Service
Owner: HR Division
Author: Jeff Clements
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Appendix 4 - Letter to Unsuccessful Applicant
Ref: Unsuccessful Application for Flexible Retirement
Private & Confidential
Dear
Application for Flexible Retirement
Thank you for your application for Flexible Retirement. The University has given careful consideration
to your application.
I am writing to confirm you have not been successful on this occasion. The University considered
that:
i.
ii.
iii.
iv.
v.
Could not foresee clear benefits to the University at this point in time
There were possible detrimental effects to the service delivery and budget
There was an adverse impact on other team members
there were no suitable jobs available within your area at a lower grade
There was no impact on the downsizing of your area
[Delete i. to v. as appropriate]
If you would wish to discuss these issues in more detail, I would invite you to make contact.
Yours sincerely
HR Services Team
c.c. Pensions Officer, Head of School / Service
Owner: HR Division
Author: Jeff Clements
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