Human Resources Division

Interim Retirement Policy

1. Context

The University introduced a Retirement Policy for staff in 2006 following the implementation of the Employment and Equality (Age) Regulations. The policy set out a notification procedure designed to advise staff of their retirement date, and a ‘right to request’ procedure where a member of staff wished to make a request to defer their retirement.

This document sets out the Interim Retirement Policy for all University staff following the removal of the national default retirement age from 6 April 2011. The legislative changes that take effect from that date necessitate a revision of the existing policy and procedure which, prior to 6 April 2011, required staff to retire on their contractual retirement date and to follow the ‘request to defer’ procedure if they wished to work for an extended period. Whilst the University is considering its longer term retirement policy, the formal ‘right to request’ procedure will not operate for retirements due to take effect after 30 September 2011 since it no longer forms part of the statutory requirements.

2. Interim Policy statement

This document states the University’s interim policy on staff retirement, to be effective from 6 April 2011, and sets out the procedures to be followed when staff members are approaching pensionable retirement age.

A longer term retirement policy is under consideration and will be published at a later date. Until that point the interim policy will remain in force. It sets out the procedure for workplace discussions with staff about their work plans as they approach pensionable retirement age.

The policy is intended to ensure that the University complies with the legislative changes enacted under the Equality Act 2010.

The University aspires to the highest international standards for its teaching and research. The maintenance of a balanced workforce is important to its long term sustainability in the retention of knowledge and excellence, and the development of skills and experience. To foster a truly diverse community in which for example, gender and age are properly represented, succession planning and a flexible approach to retirement in line with the strategic plans for the institution are essential. It is also important to balance the maintenance of key skills and experience whilst also allowing the replenishment of new areas of expertise and the development of new initiatives.

The University has therefore maintained an institutional retirement age for its staff in line with the practice prior to 6 April 2011. It also recognises that the timetable for removing or changing the retirement age is such that any changes should form part of the longer term policy being developed.

Generally it is expected that Heads of Institutions will be supportive of members of staff where they plan to continue working beyond the institutional retirement age. The University wishes to encourage positive discussion and the acceptance of requests where possible, but recognises that in certain circumstances it may not be possible or in the best interest of the institution to accede to a request. Where that is the case the Head of Institution should seek advice from the relevant HR Business Manager at an early stage in the discussion process.

This retirement policy applies to all employees (i.e. those employed under a contract of employment with the Chancellor, Masters and Scholars of the University of Cambridge) and applies equally across all staff groups and all institutions.

The policy operates in accordance with the Equality Act 2010, and follows the ACAS guidance ‘Working without the Default Retirement Age’

2.1 Interim application of an Institutional Retirement age

The University is currently reviewing its longer term retirement policy for all categories of staff. The current interim position is as follows:

For Officers (i.e. established academic and academic-related staff), the institutional retirement age is the end of the academic year in which they reach the age of 67 (Statute D, I, 11). Under the terms of Statutes and Ordinances a member of established staff who wishes to continue working beyond this date must vacate their University Office, and continue in an appropriate unestablished capacity.

For unestablished staff, contract research staff and assistant staff the institutional retirement age is 30 September in the year in which they reach the age of 65.

An institutional retirement age allows the University to support a balanced and diverse workforce. It allows institutions to undertake long term succession planning for the maintenance of key skills and experience whilst also allowing replenishment of expertise and development of new initiatives.

2.2 Pensionable Retirement age

The pension schemes operating within the University continue to have a normal pensionable retirement age of 65. This is the age at which a member of the Universities Superannuation Scheme, the Contributory Pension Scheme for assistant staff and the NHS pension scheme for clinical staff can retire and draw a pension. It is possible under the schemes to retire earlier than 65. Anyone considering retiring before this age should contact the Pensions Section for further information bfore any decision is reached. Generally retirement between the ages of 60 and 65 will not incur a reduction in the accrued pension benefits.

Retirement prior to age 60 counts as early retirement and generally pensions are actuarially reduced to take into account the early draw down of benefits.

2.3 Notification of Pensionable Retirement age

The Pensions section of the HR Division will write to members of staff in the Easter term before their normal pensionable retirement age setting out their pension benefits assuming a retirement date of 30 September. Staff may request this information at an earlier stage by contacting Mrs Sue Curryer, Head of Pensions Administration. Estimates of benefits for a later retirement date may also be requested.

2.4 Institutional planning

To aid the planning process, at the beginning of each academic year the HR Division will supply Heads of Institutions with a report of all staff in their institution who are due to reach pensionable retirement age within the next five years, along with the date they reach age 65. Heads of Institutions are encouraged to have a long planning horizon, notwithstanding that this policy is for an interim period, and to be proactive with staff who are approaching pensionable retirement age to establish, so far as is possible, what their work plans are and whether they have firm retirement plans. This will enable strategic decisions relating to the academic direction of the institution to be planned on a rolling basis. This is likely to be especially important for academic staff, and where grant continuation or termination is relevant, including where associated contract research staff have to be planned for.

3. Retiring at Institutional Retirement Age

Members of staff intending to retire at the relevant institutional retirement age should give notice to their Head of Institution in writing in line with their contractual notice period. Generally this notice period will be three months. Where possible staff are encouraged to make their plans clear at an earlier stage to allow the institution to take these plans into account in determining future workplans. The institutional Administrator will inform the HR Division by the standard notification of leaver documentation (CHRIS/40) at the appropriate time.

4. Working beyond Institutional Retirement Age

Members of staff may wish to continue working beyond the institutional retirement age on a full or part time basis. Heads of Institutions should discuss these plans with the member of staff in the context of the ongoing need for that particular role.

The University requires guidelines and processes for the discussion of individuals' plans when assessing the benefit of staff continuing in post beyond the institutional retirement age. The purpose of these guidelines is to ensure a measure of consistency across the organisation as a whole. It is important that a record is made of the discussions and agreements with an individual when meetings take place.

The implication of staff continuing to work beyond the institutional retirement age on the composition and profile of an institution's establishment over time should be monitored so that account is taken of staffing profiles in the relevant institution.

4.1 General Guidance when staff are working beyond the Institutional Retirement Age

Whilst the University will maintain the current retirement ages for established and unestablished staff, all institutions are encouraged to look upon requests for continuing in employment in a positive and supportive manner. For established staff the University Office will need to be vacated, and a new appointment made on an unestablished basis. A new contract will be issued for the extended period of employment. For unestablished staff the existing contract can continue without any changes to terms and conditions.

4.2 Managing Staff working beyond the Institutional Retirement Age

Whatever the age of a member of staff, a discussion of their future aims and aspirations will help the institution identify any training or development needs and provide an opportunity to discuss future work requirements. Where staff are working beyond the institutional retirement age it is important that Heads of Institutions maintain regular workplace discussions. The purpose of these discussion is to ensure that the individual keeps the Head of Institution informed of their plans, for the individual to make an assessment of their ongoing capability to undertake the range of duties of the role and to determine whether any adjustments to the working arrangements might be appropriate; e.g. a variation in duties, retraining for any part of the existing or a different role, or any change in working pattern. A number of factors outlined in section 5 below will provide a framework for such discussion and for managing staff expectations during this period. Where there is evidence of poor performance this should be addressed under the standard procedures. Advice should be sought from the relevant HR Business Manager where this is the case.

Process and procedure

5. Academic Staff

This section applies to established and unestablished academic staff, including Directors of Research and Principal Research Associates.

For academic staff, continuation beyond the institutional retirement age implies that the teaching and research undertaken by that individual are of high priority in relation to the future plans of the institution. It also implies that the officer's contribution remains essential and is balanced with other needs such as supporting new staff at a less senior level to renew the academy from below, or commencing new teaching or research initiatives.

Evidence of continuing high quality research is likely to be a primary driver in understanding the individual’s ongoing contribution to the institution. However, it is recognised that there may be other circumstances that merit equal consideration based on the institution’s needs and other options such as a Voluntary Research Agreement (VRA) may be agreed by all parties.

Congruent with the general University policy outlined in Section 2 (Interim Policy Statement), consideration should be give to local requirements which specifically reflect the strategic teaching and research needs of their School and its constituent departments and faculties. These points will provide an objective yardstick against which the case for individuals to continue working beyond the retirement age are considered, thus ensuring consistency of treatment and defensible decision making. School and non-school institutional heads must seek the advice of their HR Business Manager as local processes are developed to ensure that these are consistent with UK and EU employment legislation in this area, which is complex and evolving rapidly. In all cases, should an institution be considering not accepting the individual’s wish to work beyond retirement age they should contact the relevant HR Business Manager for advice and support.

In developing the mechanism for workplace discussions with individuals as they approach pensionable retirement age the following considerations may be helpful:

  1. The specific need and benefit to the institution of retaining the individual.
    • The impact on the institution of the loss of that individual's specific skills and knowledge.
    • The impact on the teaching and research of the institution.
    • Any performance, capability, or attendance issues that should be considered.
  2. Impact on the strategic direction of the institution.
    • Might it cause retention problems for other staff?
    • Would encouraging staff turnover or discussing retraining for some tasks or the full role better serve the evolving strategy of the school rather than maintaining existing staff in the same role.
    • Will current or future funding be impacted by the continued employment of an individual. Funding impacts can be mitigated by making institutional support for continuation conditional on an applicant's ability/willingness to recover the costs of their retention by grant income generated using the full economic costing methodology.
  3. The individual's preference for full or part time employment and for what period of time.
  4. The individual's own assessment of their capability to continue in the role.
  5. An assessment of the costs and timescales of recruitment and training should the office need to be recruited to.
  6. What are the cost implications of the continuation of employment?
    • Can the institution cover all related costs?
    • What are the space/laboratory/administrative resource requirements?
    • Can they be met without adverse effect on other members of staff?
    • Is there any retraining requirement?
    • Are alternative options possible such as VRA?

These considerations are not intended to be prescriptive. Heads of Institutions have the flexibility to give consideration to any factors which impact on their institution's need for the continuation of that office or post, and supporting the wishes of individuals in working beyond the institutional retirement age.

5.1 Workplace Discussion Process

Individuals who wish to continue in employment beyond the institutional retirement age are asked to discuss their plans with their Head of Institution in the year that they reach pensionable retirement age if they have not done so before then. Their appraisal (staff review and development) meeting may be an appropriate forum for this discussion; alternatively a separate workplace review meeting should be arranged. Plans should then be discussed regularly during the two years leading up to the institutional retirement age. This timeframe is to allow Schools and Faculties to plan ahead and to take academic staff plans into account in the forward planning process. Where it is necessary to comply with grant application requirements and deadlines, discussions should take place at an earlier stage timed to meet those deadlines. As noted in para 2.4, Heads of Institutions are encouraged to take retirement plans into account at the earliest stage possible in their forward planning.

5.1.1 Consideration by the Institution

The Head of Institution should keep under review the plans of all staff approaching retirement age. Where there are performance issues these should be addressed in the normal way using the standard University procedures. Where there are capability concerns relating to the health of an individual, these may be considered and advice sought from HR. Heads of Institutions should, through the planning round, keep the Chair of School informed of the retirement plans of academic staff in order to inform the overall workforce planning picture.

5.1.2 Consideration by the School

The retirement plans of staff will be considered by an appropriately constituted School Committee as part of the planning round, chaired by the Chair of School. The Committee needs to consider all cases where staff intend to continue working beyond the institutional retirement age and to confirm that there continues to be a requirement for that role. These plans need to be considered from within the School against strategic needs and taking account of resource issues. The role of the Committee is to confirm that individual and institutional plans are aligned e.g. the individual has agreed to any necessary retraining, or is aware of any planned changes or restructuring. The meeting should be minuted to record the detailed discussion of each case so that it is evident how an assessment was reached.

5.1.3 Reporting to the central bodies

The HR Division will collate information from institutions about the plans of staff who intend to continue working past the institutional retirement age and to check the supporting documentation for each case to ensure that procedurally there are no areas for concern and that cases are being treated consistently across the University. A report of the number of staff wishing to remain in post after age 67 will be presented to the HR Committee for monitoring purposes. The date of the relevant HR Committee meeting will be communicated to Schools so that they can plan the meeting dates of their committees accordingly.

5.2 Documentation

Each meeting between the member of staff and Head of Institution should be recorded. If the discussion takes place as part of the appraisal process the relevant appraisal forms may be used. Where a specific workplace discussion takes place a brief note of the key discussion points and any agreements should be made. In either case a copy of the record should be retained by the individual and by the Head of Institution for their reference.

During the course of the discussion it will be important to take into account whether:

  • The individual's teaching and research work is consistent with School strategic plans, and departmental needs.
  • There is funding to cover the salary of the Officer, including any supplementary payments and on-costs, which is assured for the duration of any planned contract extension.
  • Space and other resource requirements can be confirmed.
  • The exact terms of the extension are available where supported i.e. length of extension, and time fraction, and duties where they are to be varied from the existing office.

Where the Head of Institution considers for a particular reason that it is not in the interests of the institution for the member of staff to continue beyond the institutional retirement age, the academic or business case for this recommendation should be made to the Chair of the School and the relevant HR Business Manager.

5.3 Future Workplace Discussions

Heads of institutions should meet annually with members of staff working beyond institutional retirement age to discuss their ongoing plans. It is important to maintain a dialogue taking into account the considerations set out in section 5. The meeting will allow a discussion of the individual’s wishes together with the institution's plans, and any consequent potential variations in work requirements, retraining needs, or other variations in existing arrangements. Where it may not be possible to accommodate further extended working or where there are performance issues, advice should be sought from the relevant HR Business Manager.

5.4 Academic Staff - Additional Points

5.4.1 The post

Currently University Officers must vacate their office under the provisions of Statute D, I, 11. at the end of the academic year in which they reach the age of 67. Contract extensions beyond this age to a new planned retirement date will therefore require the Officer to be transferred into a new unestablished fixed term post. For Professors this will be as Director of Research and for Readers this will be as Principal Research Associates. University Lecturers and Senior Lecturers will be transferred to unestablished UL and USL appointments. Unestablished academic staff have a retirement date of the end of the academic year following age 65.

5.4.2 Duties

The duties of the Officer during any period of continuing employment after age 67 must be consistent with the mission of the University and the normal expectations of academic staff of the University. Thus unless otherwise clearly agreed these duties will consist of research, teaching (up to the limit of the normal stint in the Department) and administrative duties requested by the Head of Institution at the level already being undertaken by the individual in their existing Office. Where these duties will be varied (for example research-only extensions), this should be made clear, with reasons, in the recommendation to the Chair of the School and to the HR Division and will be specified in their new letter of appointment.

5.4.3 Research Grants

The University has agreed the following policy where a Principal Investigator (PI) wishes to apply for and continue to hold research grant funding that extends beyond their normal retirement date. Most grant awarding bodies permit such applications providing the PI has a contract with the University at the time of submission.

There are three courses of action open to the institution:

  1. It agrees that it is supportive of the PI's wish to continue working on a salaried basis beyond the institutional retirement age (although they may agree to reduced hours) for the duration of the grant, subject to School and General Board approval of the request to continue working.
  2. The department and the PI agree that the PI will retire at the normal retirement date and agree who will take over as PI from the grant holder at that time.
  3. The PI can apply for a Voluntary Research Agreement (VRA) to continue working on a voluntary unpaid basis after retirement to complete work on an existing grant or to commence a new grant. Applications for VRAs are subject to a separate approval process and require the institution to make certain undertakings based on an assessment of any financial or other risk associated with this course of action.

Schools are therefore encouraged to plan at least 5 years in advance in relation to any grant applications such that the resource requirements can be taken into account in the five year business plan. To that end the HR Division will, early in the academic year, provide to the Chairs of Schools and Heads of Non-School Institutions where appropriate, a report of all staff due to reach pensionable retirement age in the coming five years. PIs wishing to make an application for approval of a grant whose end date extends beyond their normal institutional retirement date will need to discuss their plans for this extended period with their Head of Institution in advance of the grant submission. If the request to continue is supported, it would be on a conditional basis, subject to the award of the grant, and the ability of the grant to meet the full salary and related costs. In certain cases the grant giving bodies will not fund indirect costs and this shortfall would need to be made up from other sources available to the department or School. The letter notifying the extension of employment on a conditional basis would be sent by the Academic Secretary at an early stage, but the formal contract extension would only be issued to the PI after confirmation of the award of the grant.

There needs to be explicit agreement with the PI before the grant is submitted about the nature of their extended employment, should the application be successful. Careful thought needs to be given as to whether they are being retained in a pure research role, or whether they will continue to be required to undertake teaching and administrative duties.

In summary, in considering a request that involves continued employment in line with a new grant proposal, it is important that the agreement is properly documented and the extent of the duties, title and basis of remuneration of any PI remaining after their institutional retirement date is agreed before the grant application is submitted. Any agreement made would be conditional on the grant being awarded.

6. Criteria and process for non-academic staff

This section applies assistant staff, contract research staff and established and unestablished academic related staff.

6.1 Considerations of work plans

The prime considerations when discussing with a member of staff their plans to continue working beyond the institutional retirement age will be:

  1. An ongoing requirement for the role ( or a willingness to retrain for a future role requirement).
  2. That continued working is in the institutional interest.
  3. The expectation that the member of staff will continue to work to the standard required and add value to the institution.

However, factors that should be taken account when considering an individual’s plans might include:

  • The value of the overall and continuing contribution, which must be to the highest possible standards, made by the employee to the University's activities.
  • The impact on the ability of the institution to meet the needs of others (whether these be students, staff or others) and the impact on quality.
  • The ability to organise the work within available staffing.
  • The history of the individual’s performance including absence.
  • The ability to recruit staff to cover any gaps and the scarcity of the skills and knowledge held by the member of staff.
  • Any planned structural or strategic changes to the department.
  • Any additional cost to the department.

It is important that the long-term sustainability of the support staff workforce in an institution is taken into account when individual plans are being considered. The continuation of an individual in employment after 65 (or 67 for established academic-related staff) must sit alongside realistic longer term succession planning, and an appropriate assessment of these issues should be made following any workplace discussions.

6.2 Workplace Discussion process for academic related staff (in grades 10, 11 and 12)

Non-academic staff in grades 10, 11 and 12 who wish to discuss plans to continue working beyond institutional retirement age should raise this with their Head of Institution at least six months prior to their retirement date. The Head of Institution or their nominee will meet with the member of staff either as part of the appraisal process or in a dedicated workplace discussion meeting to review the individual's plans. Following that discussion, the Head of Institution will advise the relevant authority of the retirement or the continuation of employment. For academic related staff in General Board institutions this will be to the Academic Secretary, for academic-related staff in the UAS and other institutions outwith the General Board, this will be the Registrary. An overview of these plans will be taken for the purposes of workforce planning at an annual meeting of the central Advisory Committee.

6.3 Workplace Discussion process for Assistant, CRS and Academic-Related staff in grades 1 to 9

Assistant, CRS and Academic-Related Staff in grades 1 -9 should discuss their plans with their Head of Institution or departmental secretary no later than six months before their institutional retirement date.

6.3.1 School Institutions

In consultation with the School's HR Business Manager the plans of all individuals due to reach pensionable retirement age in a particular year will be reported to the School as part of the planning round. Heads of Institutions will advise the school where there are cases that are not straightforward or not supported by an appropriate case. Funding assurances will need to be supplied where appropriate. The relevant Committee of the School needs to meet to consider continuations for that academic year before the end of April. The meeting should be minuted to record the discussion and decision on each case. Schools will send a list of all staff remaining in post beyond institutional retirement age to the relevant HR Business Manager for monitoring purposes before the end of May in each academic year.

6.3.2 UAS

Heads of Divisions will consult with the relevant HR Business Manager to make them aware of staff intending to remain in post beyond the institutional retirement age. A collated report of all staff together will be provided to the Registrary on an annual basis for workforce planning purposes.

Where a Head of institution considers that it may not be in the interests of the institution for an individual to remain in post or that it is difficult to accommodate any requested flexibility in duties or hours this should be discussed at the earliest opportunity with the HR Business Manager.

6.3.3 Non-School institutions outside the UAS

Heads of Institutions will consult with the relevant HR Business Manager to make them aware of staff intending to remain in post beyond the standard retirement age, supported by an appropriate case where this consideration is not straightforward. Information should also be included about how a continuation of employment would be funded. A collated list of all staff will be provided to the Director of Human Resources on an annual basis.

Where a Head of Institution considers it is not in the interests of the institution for an individual to remain in post or that it is difficult to accommodate any requested flexibility in duties or hours this should be discussed at the earliest opportunity with the HRBM so that these issues can be addressed under the standard University procedures.

6.3.4 Other staff: Additional Points

For staff holding Offices, necessarily the period of employment after age 67 will be in an unestablished capacity (in line with the provisions of Statute D, I, 11).

7. General points: all staff groups

7.1 Meetings to discuss workplans

Where workplans are not discussed under the standard appraisal process, a meeting must be set up between the member of staff and their Head of Institution (or nominee) to discuss the detail of the plans beyond institutional retirement age. This meeting should be held at least 12 months before the member of staff reaches pensionable retirement age so that their workplans can be taken into account in the institution's forward planning. A record of the meeting, the points discussed, and any agreements should be made and retained by the individual and the Head of Institution.

7.2 Future meetings to discuss ongoing workplans

Heads of institutions or line managers should meet regularly with members of staff working beyond the institutional retirement age to discuss their ongoing plans. The purpose of the meetings are to allow a discussion of the individual's wishes together with the institution's plans. Consideration of the factors set out in section 6 should also be made. Any potential changes in the work requirements or the training needs of the individual should be discussed in order to manage the expectations of the member of staff. Where it may not be possible to support a future extended work period, or there are performance problems, advice should be sought from the relevant HR Business Manager.

7.3 Remuneration

Remuneration in any continued period of employment will continue at the level of the individual's salary before institutional retirement age, excluding any emoluments for additional duties (e.g. Head of Department) where these do not continue. Where the employment is continuing at less than full time salary, this will be on a pro rata basis. Salaries will be increased in line with general uplifts to the salary spine.

Where an individual takes up a different role for the extended period of employment, their salary will be determined in the range for the grade of the job.

7.4 Pensions

Currently it is not possible for individuals to draw their pension benefits and continue in employment in the same Office or post. Whilst flexible retirement is under consideration by USS, it is not yet a confirmed option.

Where an individual wishes to access their pension benefits and continue working in the University, continued employment beyond institutional retirement age would have to be in a substantially different role and there would need to be a break in service of at least two weeks between the date of retirement and before taking up the new appointment. Where an institution is considering making a case to set up a non pensionable post for a member of staff due to retire they should take advice from the Head of Pensions Administration before any commitment is made to the member of staff. Responsibility for determining whether a post is pensionable or non pensionable rests with the HR Division, and requires a detailed case of need on the appropriate pro forma.

Appointments that continue beyond normal institutional retirement date will continue to be pensionable and remain subject to normal USS or CPS scheme rules. Where the employee is a member of USS employer contributions will cease to be paid when the member achieves 40 years pensionable service in USS (whether this point is reached before or after the normal retirement date) although the member has the option to continue to pay employee contributions beyond 40 years of pensionable service.

7.5 Reporting

An annual report of all staff who are continuing in employment beyond the institutional retirement age will be presented to the HR Committee for monitoring purposes.

7.6 Appeals

Appeals against any decision not to support an individual's continued employment will be considered through the appropriate grievance procedure for the individual concerned. For academic staff this is the procedure set out in Statute U. Where the decision is taken under the disciplinary procedure the appeal will be heard under that procedure.

8. Related documents

9. Supplementary Information