Date issued: 26/06/2003
Revision date: 01/10/2013
Purpose
To provide management with a framework for the use of existing employment/retirement mechanisms to:
1) Enhance retention of selected out-of-scope employees nearing retirement who desire a period of time to adjust their work patterns, finances and lifestyle, in circumstances where:
a) An occupation is in short supply;
b) it is in the employer's interest to delay full time retirement to retain corporate memory and/or provide greater time for development of replacement expertise;
c) it is deemed, for other reasons, to be in the employer's interest to do so.
2) Use post-retirement employment in similar circumstances.
Definition
Phased-in retirement involves some form of less than full-time employment with or without partial or full income from pension.
Guidelines
The employer will give consideration and may, at its discretion, provide approval for the use of existing employment/retirement mechanisms [eg., definite leave of absence, reduced hours of work, less than full-time employment, public sector pension plans (PSSP and PEPP)] as follows:
a) On a pre-retirement basis:
- Reduction of hours worked on a daily, weekly, monthly or annual basis;
- After age 50 and within five years of the anticipated date of retirement; and
b) Rehiring on a post-retirement basis (excluding those individuals who had accepted an early retirement benefit).
Approvals would be subject to operational requirements and restricted to the following circumstances:
- The position is out-of-scope;
- Where the occupation is in short supply; or
- Where it is in the employer's interest to delay full time retirement to retain corporate memory and/or provide greater time for development of replacement expertise; or
- Where for other reasons, subject to the approval of the Chair, Public Service Commission, it is determined to be in the employer's interest.
The employer cannot commit, in advance of retirement, to post-retirement employment, nor provide financial counsel to employees.
Where a retired individual who is in receipt of pension benefits under The Public Service Superannuation Act (old plan) is appointed post-retirement, the ministry appointing that individual must advise the Public Service Superannuation Board, in writing, on the date of that appointment.
Out-of-scope participation in PEPP is mandatory. As federal pension legislation prohibits contribution to a pension plan beyond age 69, pension contributions by both the employer and the employee shall cease when the employee turns 69.
Authorities
Definite Leaves of Absence:
Public Service Regulations, Section 67(1)
Reduced Hours of Work:
Human Resource Manual, Policy 709 (Out-of-scope)
Staffing Provisions:
Public Service Regulations, Part III, Division 3
Pension Provisions:
The Public Employees Pension Plan Act
The Public Service Superannuation Act
The Superannuation (Supplementary Provisions) Act
Public Service Regulations, Section 92
Other:
The Freedom of Information and Protection of Privacy Act
Appendices
Appendix A: Options and Primary Pension Implications
Appendix B: Summary of Benefit Implications - Selected Benefits O/S
Appendix C: Summary of Specific Employment and Pension Plan Information Relating to Phased-In Retirement
