Retirement policy template
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Our Retirement Policy Template outlines procedures and benefits related to retirement, ensuring a seamless transition for employees exiting the workforce and maintaining compliance with legal requirements.
This policy has three parts: an 'overview' that explains what it's about, 'scope' which details who it applies to, and 'general principles' that list the main rules it follows.
Additional implementation support:
Why this policy is necessary
A retirement policy is a document that outlines an organisation's approach to managing retirement for its employees. The policy typically sets out the eligibility criteria, the process for retirement, and any benefits or entitlements that the employee may be entitled to.
A retirement policy may include the following information:
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Eligibility: The policy should define the eligibility criteria for retirement, including age, length of service, and any other factors that may be relevant.
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Retirement options: The policy should outline the retirement options that are available to employees, such as early retirement, phased retirement, or full retirement.
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Notification and planning: The policy should specify the notification and planning requirements for employees who are planning to retire, including the notice period and any meetings or consultations with the employer.
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Benefits and entitlements: The policy should describe the benefits and entitlements that the employee may be entitled to upon retirement, such as a pension, severance pay, or other benefits.
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Post-retirement options: The policy should outline any post-retirement options that are available to employees, such as part-time or consulting work.
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Communication and support: The policy should specify the communication and support that the employer will provide to employees who are retiring, such as information on retirement planning, financial advice, or counseling services.
Overall, a retirement policy is an important tool for managing retirement for employees and ensuring that the process is fair, consistent, and transparent. It can help to establish clear guidelines and expectations for both the employer and the employee, and provide support and assistance throughout the retirement process.
Specifications
5 mins
625 words, 2 pages A4
1 July 2024
Retirement
Introduction
The purpose of this policy is to set out [Company]’s approach to the retirement of employees.
Scope
This policy applies to all employees of [Company].
Principles
Retirement age
[Company] does not operate a compulsory retirement age for its employees.
We are committed to equal opportunities for all our employees and recognise the contributions of a diverse workforce, including the skills and experience of older employees.
We believe that employees should, wherever possible, be permitted to continue working for as long as they wish to do so. [Company] operates a flexible retirement policy and employees may voluntarily retire at a time of their choosing.
Retirement procedure
If you have decided that you wish to retire, you should inform your manager in writing as far in advance as possible and, in any event, in accordance with the notice period as set out in your contract of employment. This will assist us with succession planning.
[Company] will write to you acknowledging your notice to retire.
Your manager will arrange a meeting with you to discuss arrangements for retirement, including the intended retirement date, succession and handover plans, pension details and phased retirement, if applicable.
[[Company] will offer pre-retirement training at no cost to the employee. Details of this training are available from your manager.]
Pension and insurance benefits
You should consider your pension provision and take independent financial advice before making any decision in relation to retirement.
If you are a member of our pension scheme you may request details of your pension entitlement from [name of individual/the HR department/the pensions manager].
[[Company]’s pension scheme allows you to draw your pension at any time from the age of [60]. [However, if the pension is drawn before the age of [65], pension payments may be subject to a reduction.] ]
[Phased retirement
If you have notified your manager that you wish to retire, he or she may discuss the option of phased retirement with you.
Phased retirement allows a change of working pattern so that you can reduce your hours gradually (for example, move to part-time working) prior to retirement. It may, for example, involve changes to your responsibilities to enable you to adjust to, and prepare for, retirement.
Alternatively, you may decide that you do not wish to retire in the near future but would benefit from alternative working arrangements in the short- or medium- term.
[Company] will fairly consider all requests for changes to working patterns in accordance with our flexible working policy.]
[Early retirement
If you wish to retire and draw pension benefits before the age of [60] you may be allowed to do so under scheme rules, but this may be subject to a reduction. If you are considering this option you should contact [name of individual/the HR department/the pensions manager] for further information.]
[Gifts and rewards on retirement
[Company] will organise a retirement gift to the value of £[amount] for retiring employees who have had a minimum of [five] years' service with us. You may be consulted about the type of gift that you would prefer to receive.]
Flexible working
Flexible/partial retirement is a potential option which, subject to approval of your application, allows you to move gradually from work into retirement rather than moving overnight from full-time work to full-time retirement.
This may work well for you as it allows you to adjust to a new lifestyle. It can also work well for [Company] as it allows us to retain your skills while making space to bring on other employees or develop less experienced staff.
Whilst working on a flexible/partial retirement basis you will continue to build up further pension entitlement in your current scheme on a pro-rata basis in accordance with the number of hours you work until you finally retire.
This policy [does not] form[s] part of your terms and conditions of employment.
Version: [1.0]
Issue date: [date]
Author: [name, job title]
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