fbpx
updated 4:42 PM UTC, Dec 9, 2018
HOT NEWS
Rules for the conduct of proceedings before the CCMA w.e.f. 1 January 2019
Ramaphosa: 'Historic' minimum wage to come into effect on January 1, 2019
Six challenges that impede entrepreneurs with disabilities in South Africa
Disabled people in Africa get a raw deal. What’s been done to fix this
South Africa's new higher education disability policy is important, but flawed
Why employing persons with disabilities is good for business
ILO GBDN: Bringing business together to promote disability in the workplace
National Disability Rights Awareness Month
Disability Rights Awareness Month 2018
President signs National Minimum Wage Bill into Law
A+ A A-

Retirement Policy

Retirement Policy

1. RETIREMENT

All COMPANY Employees must retire from service on the last day of the month in which they reach the normal or agreed retirement age, being _____ (60/65) years of age.

This retirement age cannot be extended, but Employees may choose early retirement from the age of fifty-five onwards.

COMPANY will only honour other retirement ages if they are contained in written contractual agreements agreed during mergers and acquisitions.  In all other cases, the default retirement age of 60/65 will apply.

All retiring Employees are strongly advised to start their retirement planning early.  They should contact reputable financial advisors for information regarding all the options available to them.

The Retirement Notification Form, for retiring Employees only, is obtainable from Group Human Resources and when it is submitted, the completed form must be accompanied by originally certified copies of the following:

  • Employee's ID document
  • Employee’s marriage certificate
  • Spouse’s ID document
  • Dependents’ ID documents

A Line Manager, who wishes to retain the services of a retiring Employee on operational grounds, must submit a properly motivated request to this effect, for consideration in terms of the authority matrix.

If the request is approved, the retiring Employee must first complete the retirement process before a new fixed-term employment relationship can be entered into.

2. PURPOSE

The purpose of this policy is to establish the normal age of retirement in lieu of the proposed national age according to the Labour Relations Act, Act 66 of 1995 and the principles for a fair and consistent assessment of applications for extension beyond retirement.

3. AIM

The Company aims to deal with employees in a professional manner void of any subjectivity in terms of human resource management through this policy when it comes to retirement age.

The objective of this policy is to have a smooth exit or extension of a contract on a non-partisan, bias, subjective form to employees reaching the retirement age.

4. APPLICABILITY

The policy applies to all staff employed by the Company. The policy excludes contract staff members as these are catered for in terms of the contract agreement signed with the employer.

5. POLICY PROVISIONS

  • Staff who are retiring shall be given a notice, of the decision to grant extension beyond retirement, in order to facilitate planning for the post of the incumbent.
  • There shall be fairness, consistency and transparency in the criteria and procedures for granting extensions beyond retirement.
  • All assessment panels or committees shall provide detailed reasons for recommendations or decisions taken at any sitting of such committee.
  • Applicants for extension beyond retirement shall be treated with sensitivity but no extension beyond retirement shall be granted purely on compassionate grounds.
  • All applications for extension beyond retirement shall be considered by a duly appointed sub-committee of the Management Committee, which shall make the final decision.
  • There shall be no appeals with respect to the decision of the Retirement Sub-Committee of the Management Committee.
  • Reviews based solely on procedural irregularity shall be entertained but not the decision of the Retirement Sub-Committee.

6. POLICY PROVISIONS

6.1 NORMAL RETIREMENT

The Company values the contributions made by all staff regardless of age. It nevertheless recognizes that some level of staff turnover is essential in order to introduce new skills and approaches or to re-focus activities that impact on the success of the Company as a whole. Staff turnover is imperative if the Company is to achieve its transformation goals.


All contracts of employment of staff who are members of the Company’s retirement fund, shall unless otherwise determined in terms of this policy, automatically terminate at the end of the year in which the staff member reaches the age of sixty/sixty five years.

6.2 EARLY RETIREMENT

Subject to the rules of the relevant retirement fund, staff at the age of fifty-five / sixty years and older may apply to retire before their normal retirement age.

6.3 EXTENSIONS BEYOND NORMAL RETIREMENT AGE

The Company recognizes the need to retain certain exceptional, highly skilled and productive staff beyond the normal age of retirement. Accordingly, the Company may, subject to the rules of applicable retirement fund, grant an extension beyond normal retirement to a staff member who has reached normal retirement age, for a period of up to a year, in the first instance, with the possibility of a further extension for up to three years. Notwithstanding the period of extension granted, a staff member on extension beyond normal retirement age must meet or exceed the expectations for their post in the annual performance assessment process. Should their performance fall below expectation in any year of assessment, their contract may be terminated. Extensions beyond retirement shall not be automatic and shall depend on:

Assessment of options for filling the post prior to assessing a potential retiree for an extension beyond retirement, the relevant senior managers shall consider:

  • the strategic and operational priorities of the division to determine if resources should be allocated to the post;
  • the need to use the post to enhance transformation, in terms of achieving employment equity goals of the division;
  • the likelihood of filling the post taking into account any specialized skills required for the post as well as likely availability of a replacement given prevailing market trends.

If after assessing options for the post, it is confirmed that an extension beyond retirement is possible, the staff member shall have to be assessed in terms of criteria contained in below:

Assessment of staff member

Minimum Requirements:

  • A sustained high level of performance by the staff member. This assessment shall be based largely on the annual performance reviews of the staff member once the Performance Management system has been implemented.
  • The duly elected Retirement Sub-Committee shall conduct the review and extension of the contract with the concerned employee.
  • Possession of specialized or scarce skills and qualifications that is difficult to replace through normal recruitment due to prevailing market factors.
  • Key level of involvement in a major Company project where continuity is imperative for success.
  • Evidence of continuing professional development and adaptability to new trends and developments in his/her field.
  • Evidence of leadership within the operational unit
  • Evidence of innovation and customer orientation in performing duties

6.4 DURATION OF EXTENSION

The duration of the extension shall be determined taking into account:

* Major projects in which the employee has a key role and where continuity is essential;
* The maximum duration of the first extension beyond retirement is one year. Thereafter a new application is made for a further period of up to three years.

7. TERMS OF APPOINTMENT

7.1 REMUNERATION

Where there is no change in the workload and level of responsibility, the staff member shall retain his/her salary as at normal retirement date and shall remain on pensionable service subject to rules of the relevant retirement fund.

Staff members who have previously retired from a retirement fund and have been re-appointed may not be reinstated onto The Company’s retirement fund. They shall however be granted an allowance equal to ten percent of fund or basic salary from the effective date of this policy, for the balance of their post retirement contract period.

Dependent on the specific needs of the Section, it may be decided that the staff member be extended on a reduced workload basis. In such cases the salary shall be determined on a fractional basis, taking into account the recommendations of the Human Resources Manager.

8. DEVELOPMENT AND REVIEW
The Human Resources Department will be responsible for the development and review of this policy on an annual basis except where circumstances dictate otherwise in terms of earlier review.

9. IMPLEMENTATION OF THE POLICY

Line Managers are responsible for managing their staff be on the alert for staff members who are reaching retirement age within the Company.

10. MONITORING

All Managers are responsible for monitoring this policy in their respective departments.

11. ENFORCEMENTS

All Heads of Departments and Line Managers and supervisors must ensure that these provisions are strictly complied with and it is also the duty of the employees themselves to see to it that the policy is adhered to and that any irregularity in terms of the procedure of this policy is brought to the attention of the Management.

12. INFORMATION AND EDUCATION

The copy of this policy will be placed on the website on approval by Company. Each department will have a copy of the policy to be put into the file containing policies for access by the employees of that unit. It is expected that line Managers will inform staff of the area where this policy is located for reference purposes.

Induction and staff workshops will be utilized to communicate this policy to the entire staff within the establishment.

13. EFFECTIVE DATE

This policy shall take effect on adoption by ________________.

14. REVIEW DATE

This policy shall be reviewed each year from the effective date and a calendar year will be used for the purposes of this policy.

 



Letter informing employee of retirement

Dear

RE: RETIREMENT

In terms of the Company’s Retirement Policy, employees are required to retire within ______ months of the employee reaching retirement age.

In your particular instance, your retirement date therefore would effectively be 31 ___________ 20____. In order to allow for a smooth transition from work to retirement, it is necessary to ensure that all administrative and personal arrangements have been effectively addressed. To this extent, the Regional Human Resources Manager will convene a meeting with yourself to finalise any additional queries which you may have regarding your pending retirement, including, but not limited to ……….. (insert other issues here such as medical aid benefits if any, farewell function etc)

The Company has secured the services of …… to facilitate the transition of employees from working life to retirement and to assist such persons in making new career or life choices once they are on retirement. Should you elect to make use of this service, please contact __________ to make the necessary arrangements.

We would like to take this opportunity to thank you for your dedicated service to the Company and will over the coming months make ourselves available to discuss any matters of concern which you may have.

Yours sincerely

 


 
Retirement Policy - Employee Assistance Programme (draft outline)

Purpose

To provide a seamless transition from working career to retirement.

Employee Responsibility

  • Decide at what age you wish to retire and how long your life expectancy is.
  • Determine how much you want to spend annually during your retirement, recognizing that your spending may change over different phases of your retirement. Estimate in "today's Rands".
  • Approximate the amount of your annual income at retirement. This can be done by making an appointment with the Retirement Information and Planning.
  • Calculate the current value of all other savings (IRA's, savings, and investments) and determine how much annual income you might expect to receive from each fund.
  • Decide the amount of any financial reserve you wish to maintain or the amount you wish to leave behind to your heirs.
  • Decide whether you would reinvest any income that exceeds your spending needs in any year of your retirement.
  • Consider any additional income sources you may have such as working part-time during retirement, receiving inheritances, etc.
  • You might wish visit with a certified financial planner to help you complete these steps or participate in the company initiated retirement planning workshops / company sponsored retirement counsellors

Requests for Early Retirement

The process of retirement planning and utilisation of  counselling services may be initiated by the employee at any stage within five years of the earliest eligible date for retirement (early or normal retirement age)

Five Years prior to Normal Retirement

Confirmation of benefits on retirement

  • Retirement Benefits
  • Medical Aid Cover
  • Insurance Cover
  • credited service;
  • service retirement benefits;
  • disability retirement benefits;
  • benefit payments;
  • survivor benefits;
  • administrative and appeals processes;
  • circumstances that may result in disqualification, ineligibility, or denial or loss of benefits;
  • tax considerations;
  • withdrawal of contributions;
  • loans, if applicable;
  • return to service after leaving employment;
  • transfers between investment options;
  • reciprocity of prior service, if applicable;
  • preservation of benefit arrangements;
  • plan administration, including plan year, description of the board of trustees, and legal procedures for various actions;
  • cost-of-living adjustments, if applicable;
  • Garnishee orders;
  • optional investment alternatives.

Eligibility for company benefits whilst on retirement

  • Children’s Educational Assistance
  • Employee Educational Assistance
  • Other benefits (to be clarified)

Identification of measures required by employee to supplement retirement benefits

  • Supplement medical aid insurance
  • Supplement life cover, retirement benefits
  • Reduction of employee’s personal debts, garnishee orders

Employee Details

  • Confirmation of employee banking and contact details on retirement
  • Employee plans for retirement
  • Confirmation of retirement benefits and personal details
  • Confirmation of beneficiaries

Employee Medical Check-up

  • Company sponsored full medical check-up

Remuneration restructuring

  • Restructuring of employee remuneration to maximise retirement funding requirements (increased liquidity / cash income for debt repayment / alternative investment funding etc)

Retirement Planning (for employee and spouse)

  • Retirement planning statements project pension and savings income to help employees plan for their financial security.
  • A retirement planning workshop covers such topics as pensions, housing, health, and various uses of retirement time.
  • A financial planning for retirement workshop deals with the tax implications of retirement, cash flow, investments, and estate planning
  • Drafting of wills / trusts

Two Years Prior to Retirement

  • Sponsored Medical check-up
  • Review of retirement planning statements and financial planning
  • Review of employee work obligations and EAP phased retirement initiatives viz, reduced working hours, flexi-time etc.

Six Months Prior to Retirement

  • Confirmation of exact retirement date
  • Hand over procedures

Two Months Prior to Retirement Date

  • Handover of retirement package

Scope of Employee assistance Programme (for retiree and spouse)

The scope of employee assistance is dealt with on an individual basis taking into account employee’s personal circumstances:-

  • Financial Planning
  • Post retirement Work and Employment Opportunities
  • Counselling Services / Retirement workshops
  • Request for private counselling services and payment of consultancy fees
  • Reduced Work Schedule
  • Flexi-time (implementation of flexi-time with core working hours)
  • Work from Home
  • Reduced Working Hours (typically most employers would reduce working hours down to approx 30 hours per week)
  • Annual Leave
  • Extended leave
  • Reduced work week
  • Re-allocation of job tasks and responsibilities
  • Job transfers
  • Unutilized Annual Leave
  • Alternative career paths

Retirement Benefits

  • Normal Retirement (on achieving retirement age)
  • Disability Retirement
  • Deferred Retirement
  • Voluntary Early Retirement

Post Retirement Contact

  • Change in personal details
  • Retiree / Employee electronic access to information
  • Technological Resources
  • Retirement planning software
  • FAQ
  • Employer contacts


Checklist for Employee
Checklist for Employer
Forms

 

Last modified onThursday, 18 January 2018 20:10

Warning: count(): Parameter must be an array or an object that implements Countable in /home/gwdhmoih/public_html/templates/gk_news2/html/com_k2/templates/default/item.php on line 176
Gary Watkins

Gary Watkins

Managing Director

BA LLB

C: +27 82 416 7712

T: +27 12 669 3289

F: +27 86 689 7862

Website: www.workinfo.com
Login to post comments

HR Associations