Pre-Retirement Contract

Pre-Retirement Contract

SUMMARY

The Pre-Retirement Contract Policy and Procedure establishes the provisions under which the University will issue a Pre-retirement Contract to a staff member, together with the application and approval steps for such contracts.

POLICY

PurposeTo outline the provisions under which the University will issue a Pre-retirement Contract to a staff member.

Overview

The Macquarie University Enterprise Agreement makes provision for Pre-retirement Contracts.

Pre-retirement Contracts are intended to provide a greater level of certainty for both the organisation and the staff member and are designed to assist with organisational planning and financial management.

A Pre-retirement Contract is a fixed term contract of employment between the University and an employee who has indicated a willingness to commit to a retirement date. If sought, and approved, a Pre-retirement Contract will supersede any pre-existing contract of employment.

A Pre-retirement Contract allows the University and a continuing member of staff to jointly agree that the staff member will give up their continuing status and enter into a fixed-term contract prior to their retirement.

The length of the Pre-retirement Contract will be determined within the context of the circumstances that exist within the organisational unit. Typically the period of a Pre-retirement Contract will be between 6 and 24 months.

The staff member’s employment with the University ends on the expiration of the Pre-retirement Contract.

Scope

This policy applies to staff employed under the Macquarie University Enterprise Agreement.

It will be of particular relevance to all continuing staff members of the University who have reached eligible or are approaching superannuation retirement age in accordance with their superannuation fund.

Policy

AGREEMENT
A staff member should seek independent financial and superannuation advice prior to entering into a Pre-retirement Contract.

A staff member may request to enter into a Pre-retirement Contract

the University and the staff member must agree to enter into the Pre-retirement Contract.

Pre-retirement Contracts will be offered on the basis of a staff member’s substantive position.

APPROVAL

The Deputy Vice-Chancellor (Provost) may approve the recommended offer of a Pre-retirement Contract for Academic staff.

The Director, Human Resources may approve the recommended offer of a Pre-retirement Contract for Professional staff.

The Deputy Vice-Chancellor (Provost) and the Director, Human Resources may decline an application for a Pre-retirement Contract if they consider that the issuing of a Pre-retirement Contract is not in the best interests of the organisational unit or University.

The University reserves the right to decline an application for a Pre-retirement Contract and the right to specify particular contract conditions.

LOADING

Pre-retirement Contracts usually attract a loading equivalent to 15%. The Deputy Vice Chancellor, at their discretion and on advice from Human Resources, may grant a higher loading or lower loading dependent upon the circumstances.

Loadings will be paid from budget unit funds.

A staff member on a Pre-retirement Contract is ineligible for severance pay or redundancy payments.

SUPERANNUATION

The loading will be subject to superannuation contributions by both the staff member and the University in accordance with the requirements of the staff member’s superannuation fund.

The loading can be part of a salary sacrifice packaging arrangement.

LEAVE

The staff member will be paid any outstanding annual or long service leave at their substantive rate of pay at the conclusion of the Pre- retirement Contract.

TERMINATION OF PRE-RETIRMENT CONTRACTA pre-retirement contract can be terminated: COMPLIANCE AND BREACHESThe University may commence applicable disciplinary procedures if a person to whom this policy applies breaches this policy (or any of its related procedures).

Policy Information

Contact OfficerManager, Employee Relations, Human Resources
Date Approved29 August 2006
Approval AuthorityDirector, Human Resources
Date of Commencement29 August 2006
Amendment HistoryDecember 2011 – updated with Compliances and Breaches statement
March 2010 – alignment with University Policy Framework
Date for Next ReviewMarch 2013
Related DocumentsMacquarie University Enterprise Agreement
Pre-retirement Contract Procedure (see tab above)
Policies / Rules Superseded by this PolicyNil
KeywordsPre-retirement, Approval, Termination

Asset ID = 422949

PROCEDURE

PurposeTo outline the procedure used to process a Pre- retirement Contract.

Procedure

This procedure requires actions by the following:

Staff Member

APPLY
Express interest in a Pre-retirement Contract by completing the Pre-retirement Contract application form. Indicate your proposed dates for the Pre-retirement Contract.
Senior Employee Relations Officer

Provide advice to the staff member and supervisor on the Pre-retirement Contract application and terms and conditions.

Supervisor

Discuss the terms of the proposed Pre-retirement Contract with the staff member and develop a transition plan if appropriate, including a leave plan and details of whether and how the substantive position should be filled.

Provide a recommendation to the Executive Dean or Head of Office, together with the rationale for the approval of the Pre-retirement Contract, the details of any special contract terms and the transition plan.

Executive Dean

Approve or decline the recommendation and send documentation to the Senior Employee Relations Officer.  The recommendation is to include confirmation that the budgetary implications of the Pre-retirement Contract can be accommodated by the Faculty.

Head of Office

Approve or decline the recommendation and send documentation to the Senior Employee Relations Officer.  The recommendation is to include confirmation that the budgetary implications of the Pre-retirement Contract can be accommodated by the Office.
Senior Employee Relations Officer

RECOMMEND
Prepare a recommendation for consideration by the Deputy Vice-Chancellor (Provost) and Director, Human Resource.

Deputy Vice-Chancellor (Provost)

APPROVE
Decide if the Pre-Retirement Contract will be approved and inform Human Resources.

Director, Human Resources

Decide if the Pre-Retirement Contract will be approved.

Senior Employee Relations Officer

Advise the Executive Dean/Head of Office and the staff member and prepare the Pre-retirement Contract.

Procedure Information

Contact OfficerManager, Employee Relations, Human Resources
Date Approved29 August 2006
Approval AuthorityDirector, Human Resources
Date of Commencement29 August 2006
Amendment HistoryMarch 2010 – alignment with University Policy Framework
Date for Next ReviewMarch 2013
Related DocumentsMacquarie University Enterprise Agreement
Pre-retirement Contract Policy
KeywordsPre-retirement Contract

Asset ID = 422949

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