Employee Led Schemes

Introduction

The additional annual leave scheme is a voluntary option that enables an employee to purchase additional annual leave to allow them to work more flexibly and maintain a healthy work life balance.  It has the potential to assist in reducing the workforce budget whilst providing some additional flexibility for our employees.

Employees will commit to the scheme for a period of one year, from 01 January 2024 to 31 December  2024. The University is giving a commitment that if the employee is dismissed on the grounds of redundancy during this period, redundancy pay will be protected.

Eligibility

• The scheme enables an employee, with the agreement of the University, purchase additional annual leave entitlement by a maximum of 219 hours in any single annual leave year.
• Entitlement to additional annual leave is not a right but will be considered by the University in light of service needs and cost benefit to the University. The relevant Director or nominated representative must agree that the employee can participate in the additional leave scheme.
• Additional annual leave will only be agreed when the period of absence will not require cover to meet the needs of the service at any additional cost to the University.
• Employees must have a clear understanding of the terms and conditions and key facts of the scheme before they formally enter into the arrangements.
• The employee can take a maximum of 219 hours (equivalent to 30 standard days) additional leave in any one leave year or pro-rata for a part-time employee who works for less than 36.5 hours per week.
• The additional annual leave must be taken within the annual leave year, only 36.5 hours, pro rata can be carried over, as per your Terms and Conditions.
• A request for additional annual leave must include details of when the leave is to be taken to maximise the efficiency of service delivery planning.
• Where the employee is unable to take their leave due to prolonged sickness, maternity leave, paternity, shared parental leave or adoption leave, the circumstances will be considered on a case by case basis.
• On termination of employment, reconciliation will be made of the employee’s annual leave entitlement. The employee will be required to take any outstanding annual leave during their notice period. Only in exceptional circumstances will payment be made in lieu.  If the employee has taken in excess of their proportionate annual leave in the leave year, he/she will be required to repay the equivalent salary through a deduction from their final salary.

Approval Process

Requests for additional annual leave will be given consideration in the first month of each leave year. i.e January. Faculty PVC and Heads of Professional Service Departments may, at their discretion, consider requests for additional annual leave during the year where an employee’s circumstances change.

An employee may request to have a maximum of 219 additional annual leave hours (pro rata for part time employees i.e. mapped in against their work schedule) in a leave year. The leave year runs from 1st January to 31st December.

All requests to buy additional annual leave will be considered by the appropriate Faculty PVC or Head of Professional Service Department taking into consideration the operational needs of the Department/Institute. Requests should be made through the application form which can be found at top of the page.

The outcomes from the request will be:

• Granted in full
• Granted in part
• Declined

Where it is not possible to accommodate the full request, a written response will be provided detailing the reason why.

Where the leave requested is declined, there will be no right of appeal under this policy.

Once the request has been approved by the appropriate manager it will not be possible to rescind the leave already purchased during the leave year.

The employees annual leave balance will then be updated on ABW.

Paying for Additional Annual Leave

The additional hours annual leave will be paid for through one of the following methods:

A deduction from salary as one lump sum in advance of taking the additional leave;

A deduction from salary over a maximum of 12 consecutive months commencing following approval of of your purchase.  

The employee will complete the necessary mandate for the deduction to be processed at the time of submitting the request to buy additional annual leave.

Additional annual leave will be calculated against the employee’s hourly rate of pay times the number of hours purchased.

e.g.      36.5 hours x Sp 13 (£12.48/hour) = £455.52

7.5 hours x Sp 13 (£12.48/hour) = £93.60

219 hours x SP 13 (£12.48/hour) = £2733.12

Introduction 

This employee led scheme is one of the voluntary options that enables an employee to reduce their working hours and/or weeks and work more flexibly. It has the potential to assist in reducing the workforce budget whilst ensuring that key skills and knowledge are retained by the University. 

Employees will commit to the scheme within the period of a year, which begins at the point of formal agreement. The University is giving a commitment that if the employee is dismissed on the grounds of redundancy during this period, redundancy pay will be protected at their substantive hours/weeks.  

This scheme is separate to flexible working requests. 

Eligibility for Scheme 

The Voluntary Reduction in Hours Scheme (“the scheme”) applies to all Aberystwyth University (AU) employees except for employees employed on an ongoing or fixed term contract (for the duration of the request being made).  

 Details of the Scheme 

The Employee led scheme to voluntarily reduce working hours/weeks is to be used to manage requests from employees for a temporary reduction in working hours/weeks.  Employees wishing to request a permanent arrangement should use the Flexible Ways of Working policy which can be found here 

The successful introduction of reduced hours/weeks working will depend upon managers and staff within their teams working together to agree the type of working that best suits the needs of individuals and the demands of the service in which they work. Not every work situation or environment will be appropriate for working reduced hours/weeks. 

The Scheme applies to situations whereby the relevant Head of Department or professional service or nominated representative agrees that any employee can reduce their working hours/weeks on a temporary basis of twelve months on the basis that the work will not be backfilled on a like for like basis. 

A temporary reduction in working hours/weeks is for a period of twelve months will not affect any redundancy payment. 

Employees must have a clear understanding of the terms and conditions and key facts of the scheme before they formally enter into the arrangements. It is recommended that individuals seek independent financial advice to understand the impact on their pay and pension before entering into the arrangement.  

All Terms and Conditions of Service for the position will remain the same except that they will, where appropriate, be calculated pro rata to the new hours/weeks e.g., annual leave and general public holidays will be reduced.  

• Any reduction in contracted hours/weeks may impact on an employee’s pension. Prior to making an application to reduce their hours/weeks the employee should contact their pension provider for detail of any impact.   

USS or https://www.legalandgeneral.com/workplace/a/aberystwyth-university/get-in-touch/  

 This scheme can be used to reduce working time as follows:  

• Reduce number of days per week 
• Reduce daily hours 
• Reduce the number of working weeks 

 Applications for the Scheme 

Employees must submit applications, which will require approval by their line manager by the deadline of [enter date].  

You can apply here.  

An employee may withdraw their application during the process of application and authorisation.  Once the application has been accepted and the scheme arrangement entered into, the employee can only withdraw in exceptional circumstances, with the approval of Line Management and Human Resources. 

 Approval Process 

The relevant Line Manager will initially receive and consider the application having regard to the following points:  

• The operational requirements of the service in which the position is based.  
• The burden of any additional cost, which must be incurred (additional cost will usually lead to the request being denied).  
• A detrimental effect on the ability to meet customer demand.  

• The inability to reorganise work amongst existing staff or impact on colleagues.  
• A detrimental impact on the quality of service. 
• Insufficient work during the periods the employee proposes to work  
• An already planned organisational or structural change. This can only be justified where the changes are imminent or are already being discussed. 
• Whether or not other positions in a working relationship with the applicant would incur any increase in responsibility that could result in re grading and also if the impact on their colleague’s working lives would be reasonable. 

• Compliance with Health and Safety and Working Time Regulations. 

 The Line Manager should, before making a recommendation to the Head of Department Head of Professional Service or nominated representative, meet with the employee to discuss his/her application in more detail.  

 When all matters have been considered, a submission for reduced hours/weeks will be passed to the relevant Head of Department, Head of Professional Services or nominated representative for a final decision. 

The Head of Department, Head of Professional Service or nominated representative will review applications and manager decisions before making their final decision and inform HR by returning the completed report. 

The HR Service will inform Employees of the final decision. 

If the application is refused, the employee should be informed by their Line Manager of the reasons for the rejection. 

Appeal  

If the employee requests a written response, then the manager should provide this. However, Head of Department of Head of Professional Service is final. 

Implementation 

The employee’s submission of the application form will be treated as a signed application. The content of which will be kept as a HR record, as this sets out the agreement to the contractual changes to the employee’s terms and conditions. 

It is the employee’s responsibility to check their payslip to ensure they are receiving the correct monthly pay and that any discrepancies are reported to their Line Manager. The budget holder should also monitor their budget and report all miscalculations to Payroll. 

Monitoring of the Scheme 

The AU will monitor successful and unsuccessful applications in terms of equalities information and financial savings. 

Renewal of Scheme 

The request to work reduced hours/weeks through this scheme can be made for a temporary period of twelve months, after this time you will return to your substantive hours. Should the employee wish to renew their arrangement they may  have an opportunity to reapply at the start of the next financial year, if the AU decides to offer the scheme again.  

Redundancy Pay

Redundancy pay is normally based on:

• Your length of service
• Your age
• Your pay on the date you leave or are served with notice of your redundancy.

This means that if you reduce your working hours and receive less pay, this will in most circumstances affect any redundancy pay. However, if you reduce your working hours on a temporary basis under an Employee Led Scheme for twelve months ending 12 months from which the change in hours takes place we have given a commitment that this will not affect your redundancy pay.

Impact on Terms and Conditions

Terms and conditions will generally be applied on a pro rata basis according to the number of hours worked. This will include:

• Pay
• Annual leave
• Bank holidays
• Sick pay
• Maternity pay, Paternity Leave, Shared Parental Leave and Adoption Leave

Effects of Reducing your Working Hours/Weeks

The information in this document is for general use and cannot cover every personal circumstance. In the event of any dispute the appropriate legislation will prevail. The information in this document does not convey any contractual or statutory rights and is provided for information purposes only.

How the Reduction in Working Hours/Weeks Scheme Works

The employee led scheme to voluntarily reduce your working hours/weeks scheme (“the scheme”) allows you to work more flexibly by reducing your working time. This may be done by reducing your contracted hours/weeks, which will allow you to:

• Reduce the number of days you work per week
• Reduce the number of hours you work per day

-              Reduce the number of weeks you work per year

The change to your salary will be calculated as your FTE (Full time equivalent) salary divided by FTE hours (36.5 hours per week) then multiplied by the number of working hours you are reducing to.

For example - Grade 5 SCP 17 - £25,742 pa currently working full time at 36.5 hours, reduces to 22.2 hours (3 days per week) the calculation is as follows:

£25,742 ÷ 36.5 hours × 22.2 hours = £15,656.78  p.a. (divide this by 12 for the new monthly salary). This calculation is for Gross salary (prior to deductions).

Do I have to do anything to take part? (e.g. sign any forms?)

If you wish to take part in the scheme, you will need to make a submission using the Voluntary Reduction in Hours stating the number of working hours/weeks you wish to reduce to. This form will have to be approved by your line manager and your director before the scheme arrangements can commence.

How long does the agreement last?

The agreement will last for a period of 12 months., after this you will return to your substantive hours.

Can I change my mind?

Once you have agreed to the scheme, you can only withdraw in exceptional circumstances and with the agreement of your Line Manager, and Human Resources.

Will I get a new contract?

No, you will not receive a new contract but there is a change to your terms and conditions under the scheme. Please read the following ‘Changes to Terms and Conditions of Employment’ document for your revised terms and conditions.

I already work part time. Can I take part in the scheme?

If you already work part time, you will still be eligible to participate in the scheme if you wish to reduce your hours further.

Will my pension or retirement benefits be affected?

Changing the hours you work will affect the amount of pension you build up, from that point onwards. 

If you’re a member of an AUPP, which is a defined contribution scheme, your contributions are based on a percentage of your earnings. A reduction in hours will mean a decrease in salary and which will reduce the employee and employer contributions paid into the scheme.  This means you will build up less benefits at retirement.

USS benefits are based on your actual salary. Therefore, a reduction in hours will reduce your actual salary, which means that your USS benefits will also be reduced.

Any AVCs (Additional Voluntary Contributions) will be reduced if the contribution has been elected as a salary percentage. Any AVCs that are fixed monetary amounts will not be affected by the reduction in hours. If you would like to amend your AVCs please do so via the My USS online member portal.

If you require any information on the impact to your pension benefits, please contact: pensions@aber.ac.uk

 

Details of the Scheme 
Eligibility 
Terms of the Career Break Scheme 
Making a request 
Consideration of the request
Appeals Procedure 
Equality Impact Assessment 
Welsh Language - Employee Rights 
Policy Review 

1.Details of the Scheme 

A career break is an extended period of unpaid leave from the workplace. Career breaks are typically used to pursue personal interests, such as travelling, volunteering or personal development. They can also be used to provide a period of care for a dependant. Career breaks can be of benefit to both employees and the University by improving work-life balance, making savings and supporting the attraction and retention of staff. 

Under the University Career Break Policy, eligible employees can request to take an unpaid career break of between 3 and 24 months. Requests will be considered by either the Director of Human Resources and Organisational Development (where there are no pension implications) or University  Executive (where there are pension implications), on the basis of the operational needs of the employee’s workplace. Unpaid leave for periods of less than 3 months can be requested using the University’s Unpaid Leave Policy.

Career breaks are distinct from study leave, leave of absence, secondments and other extended periods of leave such as maternity leave. This policy is not intended to replace or restrict the use of any existing leave practices. 

The University also has in place a number of schemes to support work-life balance that employees may want to consider. These are available on request from the Human Resources Department.

The provisions of the policy do not form part of an employee’s terms and conditions of employment and, as such, the University reserves the right to withdraw the Career Break Policy without notice or consultation at any time. 

2.Eligibility  

Employees can request a career break where they meet all of the following criteria: 

• They have at least two years’ continuous service at the start of the proposed leave period
• Completed your probation period
• They have not taken a career break (as defined under this Scheme) in the 5 years preceding the start date of the proposed career break
• If employed in an externally-funded post, their funding arrangements allow for a career break and they have the written permission of their funding body to do so for the period being requested.

Where an employee meets these criteria, an unpaid career break of between 3 and 24 months can be requested. 

3.Terms of the Career break Scheme  

3.1. Exclusivity and confidentiality

To avoid potential conflicts of interest, employees must not undertake paid or unpaid work for another organisation during their career break without the prior approval of the University. Details of such activities must be disclosed on the request form which can be completed in Welsh or English. If the purpose of the career break is to carry out work for another organisation, a secondment rather than a career break may be more appropriate. Information on the University’s secondment policy is available at http://www.aber.ac.uk/en/hr/policy-and-procedure/secondment/  

During their career break, employees are expected to comply with any University requirements with regards to confidentiality, financial regulations and intellectual property. 

3.2. Contact during career breaks

Employees must provide their contact details during the career break. 

Employees on an extended career break will normally be required to keep in touch and familiarise themselves with changes in the work environment whilst they are away by arrangement with their Department. This time will normally be unpaid, but will not be onerous.

3.3. Annual leave

There will be no entitlement to holiday pay whilst on a career break and the employee will not accrue annual leave. Any annual leave owing must be taken before commencement of the career break. There will be no payment in lieu for any leave outstanding.

3.4. Returning to work

The employee is expected to return to work from their career break on the date agreed. If the employee wants to resign from the University, notice must still be given in accordance with their terms and conditions of employment. 

It is expected that the employee will return from their career break to their substantive post. If this is not possible, they will be allocated to a post on no less favourable terms and conditions of employment however if the position becomes redundant it will be dealt with in accordance with the Redundancy Avoidance Policy. 

If the employee wishes to return to work earlier than agreed, they should put this request in writing to their Faculty PVC/Head of Professional Service Department) at the earliest opportunity, and at least four months in advance of the date they wish to return. If the employee wishes to extend their career break (but not past the 24 month maximum) they must make this request at least four months before the initial return to work date. It cannot be guaranteed that requests to reduce or extend the career break will be agreed to. 

If the employee is prevented from returning on the agreed date due to an event outside of their control, they must contact their Faculty PVC/Head of Professional Service Department as soon as possible. The right to return to work may be extended beyond the agreed date of return providing that appropriate evidence to support the reason for the delay is submitted. 

Where there is a failure to return to work on the agreed return date and no alternative date has been agreed, the employee may lose their right to return to work. The employer will contact the employee using the agreed contact details, giving them 7 days to respond.  If no response has been received, the employee will be considered to have resigned. 

3.5. Resignation

If an employee decides to resign from their post during a career break, they must submit their resignation in writing in Welsh or English to the Faculty PVC/Head of Professional Service Department  in advance of the agreed return to work date in accordance with their contractual notice period.

3.6. Pension

A career break will not count towards pensionable service and the University will not pay employees’ contributions to pension schemes during a career break. If an employee wishes to continue paying their contributions during the career break they should discuss this with the Finance Department.

Employees in the USS pension scheme will have their membership suspended for the duration of the career break. They will be able to maintain death in service and ill health entitlements by paying a special contribution.

All employer contributions to the Aberystwyth University Legal and General Pension Scheme will cease, but you will be able to continue to make employee contribution. On returning to work, you will be able to restart contributions immediately, but as you have not been earning during the period, no employer contributions are due.

3.7. Other provisions

A career break will not be regarded as continuous service with the University. 

Incremental progression will be suspended during a career break, but will recommence upon return to work. An employee will return to a salary that will reflect any negotiated annual salary settlements. 

If any change is proposed to an employee’s terms and conditions of employment that requires formal consultation, the University will enter into discussions with the employee as required by legislation and University’s procedures. 

4. Making a request  

Requests should be made using the attached form and submitted to the Faculty PVC/Head of Professional Service Department  at least 6 months in advance of the start of the proposed break. This is to allow adequate time for consideration of the request and, if approved, to plan for the employee’s absence. Faculty PVC/Head of Professional Service Department  may choose to consider requests made with shorter notice at their discretion. 

Employees considering applying for a career break should ensure they read the terms of the Scheme (section 5, below) before applying.

5. Consideration of the request 

The request will be considered by either the Director of Human Resources and Organisational Development (where there are no pension implications) or by the University Executive (where there are pension implications), in consultation with the employee’s Faculty PVC/Head of Professional Service Department. As not all requests will necessarily be approved, employees are advised not to commit themselves to any plans prior to a decision being made on their request. 

As a career break involves a substantial absence from the workplace, requests will be considered on the basis of the impact the break will have on operational requirements and if it is in the management’s interest to agree to the request. This will include (but is not limited to) consideration of: 

• Likely workload (individual and/or team) during the proposed period
• Impact of the absence on other employees’ workloads and to avoid overloading
• The need to retain and align key skills, knowledge and experience with strategic needs and/or operational demand
• Ability to recruit additional staff, if needed
• Potential impact on the unit’s performance and/or quality of work
• Periods of leave already taken by the employee and the impact of further leave on operational requirements
• Periods of leave being taken by other employees that coincide with the request and the impact on operational requirements
• The remaining length of service on the employee’s contract of employment
• Whether an extension to any fixed term funded posts are required and if the request is supported by the funding body
• Any other relevant operational issues
• Health and Wellbeing opportunity for the individual. Benefit that it provides to the employee
• A career break request can be refused on operational grounds. In some instances an alternative period of leave may be suggested. If an alternative arrangement is agreed, a new request form should be completed to reflect this. If a request is refused and an alternative arrangement cannot be agreed, the employee will be informed of the reasons for refusal in writing.
• If the request is agreed, one of the conditions of the career break is that the employee provides their line manager with contact details for the duration of the break, (i.e. a forwarding address, telephone number and email address). This will enable the University to keep the employee informed of any substantial developments in the workplace
• It is good practice before the career break commences for employees and managers to discuss handover arrangements and arrangements for returning to work.

6. Appeals Procedure

Appeals should be submitted in writing in Welsh or English to the Director of Human Resources and Organisational Development within 5 working days of receipt of the outcome. The appeal will be considered as a desk top exercise where all the paperwork and processes followed will be considered.

The decision will be communicated in writing within a further 2 working days. There will be no further right of appeal under the Career Break Policy. 

7. Equality Impact Assessment

The University is committed to embedding the Equality Scheme into its policies, procedures and practices. This policy has been equality impact assessed in accordance with this scheme. 

8. Welsh Language – Employee Rights 

In accordance with the Welsh Language Standards that came into effect on 1 April 2018 employees have the right to use the Welsh language to 

• make a complaint
• respond to a complaint or allegation

and employees also have the right to use the Welsh language in meetings where they are the subject of  

• complaints and allegations (or have made the complaint)
• disciplinary proceedings
• effective contribution scheme discussions
• individual consultation meetings.

A simultaneous translation service from Welsh to English will be provided at the meeting when the meeting cannot be conducted solely in Welsh. 

The University has, in conjunction with its recognised trade unions, incorporated the above requirements into all relevant HR policy and procedural documents.

Introduction 
Definition
Retirement Options 
Effect of Flexible Retirement on their Aberystwyth University Pension and Assurance Scheme (AUPAS) 
Effect of Flexible Retirement on their Aberystwyth University Pension Plan (AUPP)
Flexible Retirement under the Universities’ Superannuation Scheme (USS)
AU Procedure for applying for flexible retirement 
Appeal Procedure 
Addendum 
Equality Impact Assessment 
Welsh Language - Employee Rights 

Introduction 

1.1 Following the removal of the Default Retirement Age, with effect from 1 October 2011, the University will not assume that employees will retire at any specific age.

1.2 This policy applies to all employees and will be of particular relevance to employees who are considering their working options as they approach pensionable retirement age.

1.3 The university recognises that employing and retaining an age diverse workforce has real business benefits but also that it is equally important to have a procedure in place for applying for flexible retirement.

1.4 The University is committed to providing opportunities which enable employees to make the best possible contribution to meeting organisational goals. We recognise the need to provide employees with options and flexibility and to value their contribution. In line with the university’s other policies regarding flexible working, the Flexible Retirement Policy aims to provide employees with options that enable them to achieve a better work-life balance.

1.5 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 app3233roach to retirement in line with the strategic plans for the institution are essential.

1.6 It is helpful to understand the intention of employees with regards to their future career and retirement plans, as far as is possible, to enable the University to undertake succession planning and to assist employees in their career planning process. The university will continue to discuss with all employees irrespective of age their short, medium and longer term career aspirations.

1.7 We would encourage employees to engage in open and transparent discussions with their appropriate line manager, specifically in relation to retirement, as early as possible in their career planning process. Such conversations should take place regularly and form part of the annual staff development and performance review process.

1.8 This policy includes guidelines for retirement, retirement and further employment, and flexible retirement.

Definition

2.1 Retirement - This is what many would see as the traditional meaning of retirement and involves the employee resigning fully from their employed work at the same time as accessing their pension benefits.

2.2 Retirement and further employment – This is where an employee retires in full, accessing their pension, and then seeks re-employment with the University in another role or with another employer.

2.3 Flexible retirement – This is the opportunity for eligible employees to continue in their employment with the University, earning a reduced salary as a result of a reduction in working hours and/or grade while also receiving any pension benefits which have been accrued.

Retirement Options 

3.1 Retirement

3.1.1 The university no longer operates a contractual retirement age and therefore the employee is able to choose when to retire. As the university will no longer be determining when an employee retires the process of retirement will therefore be voluntary.

3.1.2 It should be noted that ‘retirement age’ is when an employee chooses to retire whereas ‘pension age’ is when an employee’s benefits under that scheme become accessible. The main university pension providers are the Universities’ Superannuation Scheme (USS) and the Aberystwyth University Pension Plan (AUPP), although the individual may also be a deferred member of AUPAS (Aberystwyth University Pension and Assurance Scheme).

3.1.3 The age at which an employee can access their occupational pension benefits will depend on the individual scheme rules; for state benefits the age at which benefits can be taken will depend on date of birth and gender.

3.1.4 If an employee wishes to retire when they reach their pension scheme age they are required to resign from their post. This should be submitted in writing to their Head of Department, Head of Professional Services Department, Faculty PVC, Faculty  Manager or nominee and meet the appropriate notice provisions.

3.1.5 It is acknowledged that individual intentions to retire can change due to a variety of personal circumstances and any informal discussions will only be progressed formally once notice to resign has been given.

3.2 Retirement and further employment

3.2.1 Accessing all the accrued pension benefits does not preclude a member of staff applying for another post with the University, or with another employer, at any point in the future. However it is likely that if a member of staff wishes to access their full pension benefits they would have to resign and then seek re-engagement.

3.2.3 Employees who retire can seek re-employment via the university’s normal recruitment procedures.

3.2.4 Employees should note that the value of any earnings received after taking full retirement benefits may impact on the value of the annual pension received. Annual pension and salary earnings may be liable to tax payments. More details are available from HM

Revenue and Customs, the Finance Department and the relevant pension scheme web pages.

3.3 Flexible Retirement

3.3.1 Flexible Retirement is the opportunity for eligible employees to continue in their employment with the University, earning a reduced salary as a result of a reduction in working hours and/or grade while also receiving any pension benefits which have been accrued at that point.

3.3.2 With the abolition of the default retirement age, the university is mindful of the opportunities such a significant shift in legislation and culture affords to both organisations and employees.

3.3.4 Flexible retirement allows employees a period of transition between full employment and full retirement. Where an employee’s pension scheme allows for flexible retirement this will entail the employee taking a reduction in either working hours or salary.

3.3.5 Flexible retirement allows the university to retain valuable skills and knowledge which can effectively be transferred prior to an employee’s full retirement.

3.3.6 In particular, flexible retirement can benefit the University by:

• Retaining experienced staff by providing a mechanism whereby they can continue employment;
• Enabling succession planning to fill the vacated hours;
• Supporting our aim to be an employer of choice;
• Supporting our flexible working policies and arrangements;
• Saving on recruitment costs.

3.3.7 The university will, however, take the full cost and service implications into account when considering any application for Flexible Retirement. Flexible Retirement requests will only be agreed where there is a clear benefit for the University.

Effect of Flexible Retirement on their Aberystwyth University Pension and Assurance Scheme (AUPAS) 

4.1 Employees over the age of 55 can take their AUPAS pension and lump sum at any time and continue to work for the University.

4.2 Early payment – employees who retire early must take all their benefits at the same time and their AUPAS pension will be based on the higher of their index salary from scheme closure date or the final salary. Their benefits may be subject to a reduction to reflect the early payment. Employees will earn no further benefits in the scheme once they have taken their benefits in this manner.

4.3 If an employee dies after their benefits come into payment they will be treated as if they died after retiring and their benefits will be worked out on that basis.

4.4 Late payment – when an employee reaches Normal Pension Date they may continue working for the university and defer taking their benefits up to age 75. Their pension will be based on the higher of their index salary from scheme closure date or the final salary at their Normal Pension Date. They will earn no further pension but the pension they defer will be increased to reflect its late payment.

Effect of Flexible Retirement on their Aberystwyth University Pension Plan (AUPP)

5.1 As AUPP is a defined contribution scheme, the date of retirement has no bearing on when funds are drawn out of the scheme.

Flexible Retirement under the Universities’ Superannuation Scheme (USS)

6.1 Scheme changes within USS implemented with effect from 1 October 2011 allow active members of the scheme to remain in the employment of the University and continue to build up pension benefits in the scheme, whilst drawing some of their accrued pension benefits.

6.2 Eligibility under the scheme:

• Active members of the scheme, in either the final salary or the career revalued benefits section will be able to apply to their employer to flexibly retire under these provisions. This will include members who are exempt or are excluded from paying contributions having completed 40 years’ pensionable service or having reached the age of 65 (employees who do not have 40 years’ service having reached age 65 may still accrue benefits).
• Flexible retirement will not be available to deferred members or in respect of any variable time employment (contracts where there are variable hours of work). Also, at the current time, multiple appointment (members who hold two or more contracts of employment which are pensionable within USS) are not eligible for flexible retirement.

6.3 In order to apply for flexible retirement under the scheme, the following requirements must be met:

• The member must be aged 55 or above;
• He/she must have ‘qualifying service’ (this is a period of service or other qualification that would otherwise entitle a member to preserved benefits if he/she ceased to be an active member and is normally a period of at least two years’ pensionable service);
• The proportion of benefits drawn is a minimum of 20% and a maximum of 80% of the member’s total pension and lump sum at the date of flexible retirement (note that benefits will be actuarially reduced to the extent that they are payable before the member’s normal pension age);
• A member must reduce their working hours by a minimum of 20% and also reduce their salary by a minimum of 20% on a long term basis (and in any event for no less than 12 months);
• A member may elect to flexibly retire on a maximum of two occasions, following which the member must draw further benefits only by retiring in full. When a member takes a second flexible retirement, the maximum proportion of benefits he/she may receive on the second flex is 80% of the then accrued benefits less the percentage of benefits drawn on the first flex.

6.4 If a member wishes to explore the possibility of flexible retirement he/she may firstly chose to visit the USS website to use the benefit modeller (inputting information from their last service statement) to find out in broad terms the amount of benefits to which he/she is entitled.

6.5 If a member requires a more formal, provisional quotation of benefits on flexible retirement, a ‘request for a flexible retirement quotation’ form should be completed by the employer. At this stage it is anticipated that the employer and member will have started to discuss the issue of flexible retirement, however, no final decision on the application to flexibly retire will have been made by the employer. A quotation prepared by the trustee company will be provided to the employer along with a copy for the employer to provide to the member.

6.6 Should a member decide to proceed to flexibly retire, and his/her employer’s consent is obtained, a ‘notification of a member’s flexible retirement’ form will need to be submitted to the trustee company at least two months ahead of the intended date of flexible retirement. This form will confirm the intended flexible retirement date and percentage of benefits to be drawn. As part of this form, the employer will be required to complete a declaration regarding the reduction in working hours and salary. The trustee company will then arrange for payment of benefits to the member.

AU Procedure for applying for flexible retirement 

7.1 An employee who is considering the option of flexible retirement should have an early discussion with their Head of Department, Head of Professional Services Department, Faculty PVC, Faculty  Manager or nominee.

7.2 The employee should then obtain an estimate of their pension benefits either directly from USS, AUPP or for their AUPAS scheme. USS members should, in the first instance, use the benefit modeller available on the USS website. If the employee requires a more formal, provisional quotation, they should inform the Director of HR or nominee as the University will be required to submit a ‘request for a flexible retirement quotation’ form to the USS trustee company, AUPAS or AUPP.

7.3 Once the employee has been provided with a copy of their estimate they should decide whether or not to proceed with an application for flexible retirement.

7.4 Employees who decide to pursue an application should complete AU’s ‘Flexible Retirement Request Form’. The form must be signed, dated and (unless otherwise stated below) sent to the relevant Head of Department, Head of Professional Services Department, Faculty Director, Faculty  Manager or nominee with a copy to the Human Resources. This will then be uploaded to the Post Approval Group for consideration. The AU Flexible Retirement Request Form has been provided to aid the request process.

7.5 Requests for flexible retirement from certain individuals may be required to follow a modified procedure. Examples of such posts are:

• Heads of Academic Departments, Pro Vice-Chancellors and other members of the Executive Team, may be required to apply to the Vice-Chancellor.
• Heads of Professional Services Departments and staff employed in Human Resources may be required to send requests to the Director of Finance and Corporate Services

In all cases a copy of the request form should be sent to the Director of Human Resources who can advise on the appropriate procedure to be followed.

7.6 The Head of Department, Head of Professional Services Departments, Faculty PVC, Faculty Manager or nominee, on receiving the completed form, should acknowledge receipt, in writing, to the employee within 10 working days. The Head of Department, Head of Professional Services Department, Faculty Director or nominee must then prepare a business case in relation to the request. The business case should take into account the following:

• Implications for the team / service;
• Needs of the service;
• Whether the request will enable the retention of valuable skills / experience / knowledge;
• Whether the request will enable a potential successor to be identified and developed;
• Consideration of the impact of the request, taking into account pension benefits and reduction in earnings;  All cost implications.

7.7 The business case must also specify which of the following three options will be used to address a reduction in hours:

• Delete the residual hours to achieve a saving, this may entail a change to working practice and/or service provided;
• Cover the hours, with a lower graded post, as part of a succession plan;  Make an appointment to the remaining hours.

7.8 The Head of Department, Head of Professional Services Department, Faculty PVC, Faculty Manager or nominee should then submit the business plan to the Director of Human Resources. This will then be consideration by the Executive. Upon making a final decision, Executive will take into consideration the employee’s application and the business case.

7.9 The employee will be notified of the outcome in writing within 10 working days of the decision being made by Executive. Where a request is approved, in the case of applications from USS members, the University will submit a ‘notification of a member’s flexible retirement’ form to the trustee company. The employee will also be issued with a contractual letter setting out the revised terms and conditions of employment.

7.10 Where the request is declined the employee will receive written notification giving details of the reasons why the application was unsuccessful in this instance. Details of the employee's right to appeal (see section 9 of this policy) must also be provided.

7.11 In the case of declined applications, employees may reapply for flexible retirement after a period of 12 months from the date that their application was declined.

7.12 An employee who has previously been granted flexible retirement can apply for a further reduction in hours and / or grade. Where an application for Flexible Retirement is subsequently approved, a letter will be issued setting out the revised terms and conditions of employment. Unless otherwise stated, the change will be permanent and the employee will not have the right to revert to their previous working arrangement.

Appeal Procedure 

8.1 If an employee's request for flexible retirement is declined they have the right to appeal. Notice of the appeal should be made in writing and (unless otherwise stated below) addressed to the Director of Human Resources.

8.2 For Heads of Academic Departments, Heads of Professional Service Departments,  Pro Vice-Chancellors and other members of the Executive Team (the appeal must be made to the Vice-Chancellor).

8.3 Heads of Professional Services Departments should address any appeal to the relevant Exec member, as should staff in Human Resources.

8.4 In all cases a copy of the appeal should be sent to the Director of Human Resources.

8.5 An appeal can only be made on the grounds of defect in procedure.

8.6 Notice of the appeal must be made by the employee in writing, within 14 days of receiving the decision, setting out the grounds of appeal.

8.7 A  member of Council will review the case to consider whether a defect in procedure has occurred. Where no defect in procedure is identified the employee will be notified in writing within 10 working days. There is no further right of appeal. Where a defect in procedure is identified, the  member of Council will notify the Director of Human Resources and Organisational Development  in writing. The Director of Human Resources and Organisational Development will then re-consider the application. The employee will be notified of the outcome of the appeal in writing within 10 working days of the decision being made by the Executive.

Addendum 

9.1 All retirements and applications for payment of pension benefits are subject to the regulations of the relevant pension scheme. In dealing with any retirements the University is bound by statutory regulations and the provisions of the schemes currently being administered within the university. If there is any difference between the legislation governing the relevant pension schemes and the information in this policy, the legislation will apply.

Equality Impact Assessment 

11.1 The university is committed to embedding the Equality Scheme into its policies, procedures and practices. This policy has been equality impact assessed in accordance with this scheme.

Welsh Language - Employee Rights 

In accordance with the Welsh Language Standards that came into effect on 1 April 2018 employees have the right to use the Welsh language to

• make a complaint
• respond to a complaint or allegation

and employees also have the right to use the Welsh language in meetings where they are the subject of 

• complaints and allegations (or have made the complaint)
• disciplinary proceedings
• effective contribution scheme discussions
• individual consultation meetings