Retirement

The University aims to help staff and managers in understanding the options which are available in relation to retirement. Pension regulations are complex and while the University is legally prohibited from giving direct advice on financial matters, including pension benefits, we are encouraged to provide advice and interpretation. This Toolkit summarises guidance and arrangements in place pertaining to staff retirement. It applies to all University of Aberdeen staff members.

Information about the pension schemes applying to staff at the University can be found at Pensions | StaffNet | The University of Aberdeen (abdn.ac.uk)

Early Retirement

Information about early retirement, with reduced benefits, for the pension schemes can be found in the section relating to each Scheme. The Pensions Office can also advise.

Flexible Retirement

Members of the USS pension scheme, who wish to access a portion of their pension benefits while continuing to work in a reduced capacity prior to full retirement, can make a request for flexible retirement.

The rules of the USS allow a scheme member to draw part of their pension whilst continuing to work and receive a part-time salary. The minimum reduction in current working hours and salary under this arrangement is 20% and the maximum pension that can be drawn is 80%. A member of staff wishing to access the flexible retirement option should first seek guidance about the terms of the scheme from the Pensions Office.

Voluntary Severance

In circumstances where the University has announced a Voluntary Severance Scheme, subject to the rules of the relevant pension scheme, it may in some cases be possible for staff over 55yrs to take early retirement and for the voluntary severance payment otherwise due to be used to fund pension benefits, either by funding an actuarial cost associated with the early release of the pension or by the purchase of additional pensionable service. Speak to Human Resources for more information.

Ill health Retirement

In cases where a member of staff's long-term ability to work is likely to be significantly affected by ill-health, they may become eligible for ill-health retirement under the terms of the pension scheme of which they are a member. The ill-health provisions and the procedures for ill-health retirement vary between the pension schemes. Human Resources can provide detailed information (and assistance in making an application where appropriate).

Considering retirement and discussing with your manager

The University does not have a set retirement age and it is, therefore, an individual staff member's choice as to how long they wish to continue working or whether they wish to retire.

If you choose to retire, you should let the University know by providing written notice of retirement to your line manager, providing the notice as specified in your contract of employment. You may provide longer notice of your intention to retire if you wish to but you are not under any obligation to do so. Providing longer notice helps both you and the University in planning for retirement and to facilitate effective succession planning. The University also has in place the Pre-retirement Leave Policy for those who provide notice of their retirement, which aims to provide additional support for staff as they transition to retirement.

You should also contact the University's Pension Section and give at least 3 months' notice of your retirement date so that pension arrangements can be put in place. It is recommended that you provide the Pension Section as much advance notice as possible to allow them to administer retirement options on a confidential basis.

You may also wish to consider whether flexible working is suitable for you as part of planning for retirement.

Transitioning into retirement

The University recognises the importance of early and effective planning for retirement. The following sections have been collated together to support staff in this planning. In addition, the University has Positive Retirement Planning workshops available which can be booked through the Course booking system.

Pre-retirement Leave

The University has a Pre-Retirement Leave Policy which seeks to assist staff further during their period of transitioning to retirement.

Your role as a manager in respect of retirement is twofold: (i) planning for the future as part of succession planning, by having open conversations with staff and, when a member of staff has indicated their intention to retire, consider what happens to the role after they have retired in a timely manner, ensuring consideration of transfer of knowledge as far as possible and, (ii) to consider the support that you can give to staff as they approach retirement.

Supporting Staff

It is important to be mindful of the potential impact the change, as they approach retirement, may have on staff. Whilst many staff may embrace this future change, others may be more apprehensive about it.

It is helpful to recognise that each staff member will approach and cope differently with their transition into retirement. The following are some helpful suggestions to help you to support staff.

• Be approachable and accessible so staff feel comfortable coming to you when they need to.
• Create an environment of trust where staff feel able to be open and honest with you about their plans for retirement.
• Ensure you understand the University's retirement process, so you know what is expected from you and your member of staff, as this will be helpful for the planning process.
• Be prepared to listen and explore the staff members plans for retirement.
• Consider whether a request to reduce hours as part of the lead up to retirement, if the member of staff wishes to request this, can be accommodated.
• Be mindful that for staff, making decisions in the early stages of planning and preparation may take time.
• Be positive and encourage the staff member to focus on the future and the positive outcomes from retirement.
• Encourage staff to make gradual steps for their transition, this may be achieved by setting short-term goals which will help maintain the momentum of planning and preparation.
• Help staff to find solutions to any problems they encounter in planning for their retirement.
• Promote well-being during the process, signposting to support available from HR and/or the Wellbeing Team.
• Ensure staff know where else they can seek support from - e.g., from the Pensions Section, their trade union representative and yourself.
  

Discussions and support

Having open and honest discussions with staff can assist you to plan more effectively for the future and, where appropriate, can help facilitate the transition from work to retirement for both the member of staff and the department/section.

Opportunities such as catch-up meetings and annual reviews may be a helpful place in which to discuss, with all staff members, their aims and ambitions, as well as departmental/section plans and staffing needs.

You should, particularly during annual review discussions, take the opportunity to ask each staff member about their career and contribution to the University, for the:

• short term
• medium term
• long term.

Asking open questions about future plans during any workplace discussion will help to avoid suggestions of age discrimination . It is not necessary to ask all staff the same questions, but all the relevant issues should be explored with all staff in an open way which avoids making assumptions about age.

During these discussions, managers should also give all staff the opportunity, irrespective of their age, to develop and learn new skills through staff development and training initiatives.

These discussions will help managers to assess how the staff member's skills and abilities can be matched to the departments' future plans.

The following suggestions may help you to hold such discussions:

• keep the meeting informal and ensure confidentiality to create an atmosphere of trust.
• Remember in asking open questions these should be with all staff - e.g., what are your aims and plans career-wise for the short (6-12 months), medium (1-2 years) and long term (2 years +)?
• Ask questions such as 'we are offering all staff to be trained in this new technology, undertake this training.. what are your thoughts on this?'

If a member of staff discusses their retirement needs:

• Make it clear that you are not suggesting or trying to influence them to retire at a given time or that you expect them to do so.
• Emphasise that its helpful to understand their plans, even if they are not definite, in order to make sure that future staffing plans can be considered.
• Ensure that they understand discussions will not be taken as confirmation of retirement and that if they do wish to proceed then they should discuss with the Pension Section and provide written notice as per their contract of employment (or longer if they wish to).
• Explore how the University can support them in their transition into retirement.

Succession Planning

When you are discussing future plans with staff and they indicate an intention to retire it is helpful for you to explore:

• how to retain the knowledge, skills and experience that they have as far as possible.
• How such knowledge and skills may be passed on to other colleagues.
• What considerations there are for replacing the member of staff who is retiring, including, whether the same or a different role is required and the approval process for doing so.
• Whether there is a possibility of the member of staff who is retiring taking on a mentoring role for less experienced staff as part of succession planning before they retire.