The purpose of this report is to seek the Human Resources and Council Tax Committee’s approval of the revised Retirement and Flexible Retirement Policy at Appendix A, which establishes a clear and consistent process for retirement and flexible retirement applications.

It was reported that the revised Retirement and Flexible Retirement Policy established a single, clear and consistent framework for the management of standard and flexible retirement arrangements. It was confirmed that the Council did not operate a compulsory retirement age and that the Policy reflected the relevant requirements of employment and equality legislation and the Local Government Pension Scheme (LGPS).

The principal provisions of the revised Policy were as follows:

·        The introduction of a standard Retirement/Flexible Retirement Notification Form, with employees expected, wherever possible, to provide at least three months’ written notice.

·        A five-stage process covering early discussion, the provision of pension information, formal notification, confirmation of arrangements and completion of the Council’s leaver process.

·        A requirement for employees to obtain appropriate pension information and consider the financial implications before making a final decision, recognising that the Council was unable to provide financial advice.

·        Eligibility criteria for flexible retirement, which could be available to eligible permanent employees who were active LGPS members and had reached the applicable normal minimum pension age, subject to a permanent reduction in contractual hours of more than 25%, a reduction of at least one grade, or both.

·        Consideration of each flexible retirement application on its individual merits, having regard to business continuity, service provision, operational impact, affordability, workforce and succession planning, recruitment implications, knowledge retention and any relevant precedent.

·        Consideration of the application by the relevant Corporate Director, followed by submission to the Workforce Panel, comprising the Section 151 Officer and the Head of People. The Panel could endorse the application but had no delegated decision-making powers. The formal decision would be taken by the relevant Corporate Director in accordance with the delegations set out in Part 3 of the Council’s Constitution, having regard to the Panel’s advice. Any proposal involving regrading, restructuring or a change in staffing levels, or falling outside the approved Policy, would be referred to the Head of Paid Service or determined through the appropriate constitutional route.

·        A requirement that flexible retirement should normally be at no additional cost to the Council, including no pension strain cost, with any early access to pension benefits potentially subject to actuarial reduction.

Members were reminded that flexible retirement was not an automatic entitlement. There was no general trial period and, once pension benefits had been brought into payment, reversal would not normally be available. The Policy nevertheless preserved the Council’s ability to consider exceptional circumstances pragmatically and through the appropriate constitutional decision-making route. Employees would have the option to either remain in, or rejoin, the LGPS to build up further benefits, including through the 50/50 section where appropriate. Where an application was refused, the employee would be able to invoke the Council’s Grievance Appeals Procedure.

It was felt that the implementation of the revised Policy would provide a clear and consistently administered route through retirement and flexible retirement. The proposed notice and notification arrangements would allow sufficient time for the Essex Pension Fund Team and the Council’s Payroll and Payments Team to obtain estimates and complete the necessary pension and employment processes.

The revised arrangements would support business continuity, service provision and effective workforce and succession planning. They would also facilitate knowledge transfer and the retention of skills and experience where operationally appropriate, while promoting fair, transparent and consistent decision-making across Council services.

The Policy also defined the respective responsibilities of employees, managers, the People Team and the Payroll and Payments Team, thereby strengthening compliance with employment, equality and LGPS requirements and reducing procedural and financial risk.

It was moved by Councillor Guglielmi, seconded by Councillor Keteca and RESOLVED that the Committee:

a)     approves the Retirement and Flexible Retirement Policy attached at Appendix A to the Officer report (A.1);

b)     notes that flexible retirement applications would be considered in line with the approved Policy and determined in accordance with the delegations set out in the Council’s Constitution; and

c)     authorises the Director of People to implement the approved Policy and, in accordance with the Council’s delegated arrangements, to make any minor, consequential or legislative amendments to associated procedures, guidance and documentation that did not materially alter the Policy.