Transition to Retirement Policy

Intent

This Policy supports Staff Members’ staged transition to retirement and retention of corporate knowledge through an incentivised career transition.

Scope

This Policy applies to all continuing Staff Members covered by the James Cook University (JCU; the University) Enterprise Agreement.

Definitions

For a comprehensive list of definitions, please refer to the Human Resources Policy Glossary.

Policy

1. Transition to Retirement Incentive

Transition to retirement refers to an employment arrangement confirming transition arrangements for a Staff Member prior to their retirement. Transition to retirement arrangements may include utilisation of accrued leave to maintain full-time status while working part-time hours without reduction in superannuation benefits. Continuing Staff Members may apply to transition to retirement and, if approved, may be granted an incentive payment.

2. Criteria

2.1 The following criteria will be used to assess applications for transition to retirement:

• There is a need to retain corporate knowledge through an orderly career transition within the Work Unit/Division; and
• There is no detriment to the operations of the Work Unit/Division, or any other area of the University.

2.2 The University retains the right to decline applications that would be detrimental to the operations of the respective Work Unit, or any other area of the University.

3. Transition to Retirement Incentive Payment

3.1 Transition to retirement may be supported with one of the following incentives:

3.1.1 A lump sum payment equivalent to 10% of the Staff Member’s annual salary immediately prior to commencing a transition to retirement arrangement payable in the next pay period following the formal written approval. Additionally, employer-funded UniSuper contributions will be maintained for the duration of the transition to retirement arrangement for a period of no more than 2 years at the same monetary rate immediately prior to commencement of transition to retirement. This benefit is payable subject to formal written approval to a phased reduction in the Staff Member’s FTE fraction towards separation from employment with the University no later than two (2) years following commencement of the approved transition to retirement plan; or

3.1.2 A lump-sum payment equivalent to 6 months of the Staff Member’s annual salary immediately prior to commencing a transition to retirement arrangement payable upon separation from the University. Where the Staff Member is regularly paid shift or penalty rates, the salary used for calculation purposes will be based on the average of the fortnightly salary calculated over the preceding 12 months including shift and penalty payments. This benefit is payable subject to formal written approval to a phased reduction in the Staff Member’s FTE fraction towards separation from employment with the University no later than 2 years following commencement of the approved transition to retirement plan.

Related policy instruments

Transition to Retirement Procedure

Transition to Retirement Application Form

Schedules/Appendices

Nil

Related documents and legislation

Administration

NOTE: Printed copies of this policy are uncontrolled, and currency can only be assured at the time of printing.

Approval Details

Revision History