Your retirement policy should:
- Set out its purpose and aims
- Specify the scope of the policy.
- Make reference to any other legislation, policies or documents that support the interpretation and operation of this policy.
Key features of a retirement policy
The main points of the policy should include:
- details of any specific arrangements the company has in place to support employees of any age who are either voluntarily considering early retirement or who are to be compulsorily retired.
- details of flexible working opportunities and the procedure for applying for this.
- provision for the employee to receive written confirmation of any agreed variation to his/her terms and conditions in the event that he or she also requests a change to their working pattern or hours and this is approved
- details of the procedure for making a formal request for retirement
- details of retirement notice requirements
- provision for a meeting, or meetings, to be held to discuss the formal retirement request
- provision for the employee to receive formal written acknowledgement of his/her resignation request and confirmation of the date of retirement.
Handling written requests to retire
If an employee does inform the organisation that they are planning to retire ask for this to be confirmed in writing. You can jointly draft a note with the employee advising other staff of the employee’s impending retirement date.
Arranging pre-retirement meetings
It is good practice to hold a series of pre-retirement meetings with the employee to enable them, and the organisation, to prepare for the impending retirement. However, care would need to be taken to ensure that there is no perception of the employer attempting to force anyone to retire (unless the employer can objectively justify this).
Discussing pensions and retirement pay
If your company operates a company pension scheme the employer could assist the employee in contacting the pension providers and advising them of the employees intended retirement date. The employer could calculate the employee’s retirement pay using the employee’s usual salary arrangements plus any other entitlements that may be due as outlined in their contract.
Making retirement arrangements
You should arrange for the handover of work related items such as laptops, mobile phones and other company owned items, in the same way as you would for any other employee who is leaving the organisation. You may also wish to co-ordinate arrangement for the employee’s retirement gift and assist in arranging some sort of social event to celebrate the retirement of the employee.
If you need help managing the retirement of your employees, or need help creating a retirement policy, contact our CIPD accredited HR Consultants at aspire cambridge on 01223 855441.