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ITEM CA14 - ANNEX 2

CABINET - 18 OCTOBER 2005

RETIREMENT POLICIES

DRAFT

Retirement Policy Statement (Green Book Staff)

Principles

  1. This policy applies from 1 November 2005 to all employees who are members of The Local Government Pension Scheme (LGPS) or are eligible to join. A separate version of this policy applies to teachers.

  2. An employee who has chosen not to contribute to the Local Government Pension Scheme will receive no pension benefits under this scheme upon retirement. This does not affect the payment of redundancy compensation under the Oxfordshire County Council Scheme.

  3. The normal retirement age for all employees is 65 years. However, employees may seek to continue to work beyond that age. Employees will be advised to consult Pensions Services in these circumstances. Employment beyond age 65 years will be subject to regular risk assessment of the employee’s suitability in view of the duties and responsibilities of the job. This may include referral to Occupational Health for a health assessment. The Council’s normal employment policies and procedures will be applied to all employees over 65 years of age.

  4. An employee who is aged 60 to 64 years may choose to retire by giving the appropriate notice. Those employees who have a sufficient period of membership in the pension scheme will receive immediate payment of pension, in accordance with Pension regulations. Employees will be advised to contact Pension Services for information about any pension entitlement and the arrangements for payment options.

  5. Retirement with an immediate payment of pension before the age of 65 years may also arise for the reasons set down in paragraphs 8 and 9 overleaf and is subject to the conditions stated.

  6. An ex-employee who has retired and is receiving a Local Government Pension will not normally be re-employed by the County Council unless he/she has been selected by a full recruitment process. However, retired employees may register for short-term casual work without further process. A re-employed pensioner is required to advise the Authority who pays his/her pension of any new employment as his/her pension may be reduced in accordance with Pension Scheme Regulations and Compensation Regulations Policy Statements.

    7. Special Retirements

  7. In the case of the retirements referred to in paragraphs 8 and 9 (a) and (b) below re-deployment to other appropriate employment will be considered, and offered as an alternative to retirement where appropriate and available.

    8. III Health Retirements

  8. An employee who has been certified by an independent Occupational Health Advisor as being permanently incapable of discharging his/her duties or other comparable duties by reason of ill health or infirmity of body or mind may retire at any age, with immediate payment of a pension after three months’ of LGPS membership.

    9. Other Retirements requiring Pensions Benefits Sub-Committee Approval

  9. Early retirement may be available for employees in the circumstances set out in a) and (b) below, taking into consideration the full cost of the retirement and the best interest of the Council in making their decision. The Council will not normally agree to early payment of deferred benefits or early retirement on other grounds such as for compassionate reasons.

    1. Redundancy after the Council’s Redundancy Procedure has been followed.

      2. In this case employees who are over 50 years old will receive a redundancy payment calculated in accordance with the statutory redundancy pay rules but based on actual salary, plus immediate payment of their pension entitlement with no reduction of pension benefits. Employees who are aged 57 years and over will be considered for an additional award of up to 3 added years’ enhancement where they have over 20 years’ employment service with Oxfordshire County Council or another employer to which they were transferred under T.U.P.E. (Employment service for these purposes may be full or part time and need not necessarily be continuous. Enhancement will be pro rata for employees who are part timer at the time of retirement).

      Ex-employees with preserved entitlement who were transferred from the Council’s service under T.U.P.E. and who are subsequently made redundant by the employer to which they transferred will receive an immediate payment of pension as above from age 50.

    2. Where it is in the interests of the efficiency of the Council’s operations.

      3. Under the following circumstances in (i) to (ii) below employees will receive immediate payment of their pension entitlement with no reduction of pension benefits. No added years’ enhancement will be awarded in these cases. Early retirement on these grounds will only be granted where the application of the Council’s policies to improve individual performance are not appropriate.

        1. an employee aged 57 years or over whose retirement will enable organisational change to take place resulting in a saving to the revenue budget.

        2. an employee aged 50 years or over where retirement on the grounds of ill health cannot be agreed but where there is a substantial medical or psychiatric condition and the retirement is recommended by Occupational Health because, in the view of the Council’s medical adviser, it is likely to render him/her significantly less efficient, for example, due to high level of absences.

  10. Any request for early retirement which falls outside this scheme will be considered by the appropriate committee of the Council, together with a recommendation from the appropriate Director as to whether or not it should be supported. The financial and other implications of the request will be taken into account.

  11. Where the retirement is under Paragraphs 8 to 10 above the additional costs of the shortfall to the Pension Fund and the payment of added years will be met by the employing directorate.

    12. Disputes Procedure

  12. Where a member of the LGPS has a dispute regarding his/her pension he/she may refer this as appropriate through the County’s agreed Raising Concerns at Work Procedure or through the procedures laid down in the Pension regulations to the Nominated Person.

    13. Revision of this Policy

  13. This policy will be reviewed within 2 years of its implementation or earlier if deemed necessary.

Head of Human Resources

Revised 2005


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