Retirement

Effective date:	May 2006
Last updated:	May 2006
Policy owner:	Manager, Remuneration, Policy and HR Admin
Enquiries:	Human Resource Advisers

Purpose

To clarify the different circumstances under which a staff member may retire and the benefits associated with the retirement.
To identify the circumstances under which an individual may be appointed after reaching the UCT retirement age (i.e. 65).

Definitions and approval process

Retirement

This is normal retirement whereby the employment contract ends at the end of the year in which the staff member turns 65, as stipulated in the rules of the UCTRF. The staff member is entitled to all retirement benefits such as medical aid subsidy, staff/pensioner tuition rates, and access to UCT libraries and sports facilities.

Early retirement

Early retirement arises when a staff member applies for retirement before the year in which he/she turns 65. A staff member may elect to retire at any time after attaining the age of 55 years, provided that he/she gives the required notice, and that the accountable Deputy Vice Chancellor and the Executive Director, HR (EDHR) approves such retirement for academic and PASS staff respectively, including specifically the commencement of retirement benefits (medical aid subsidy, staff/pensioner tuition rates, and access to UCT libraries and sports facilities).

Pre-early retirement (i.e. leave without pay pending retirement)

Pre-early retirement arises when a staff member applies for early retirement before the year in which he/she turn 55. Pre early retirement is highly unusual and will ordinarily only be considered in situations of long service and outstanding performance. All applications must obtain the approval of the line manager and the accountable DVC in the case of academic and the EDHR in the case of PASS staff. An application must be submitted at least six months prior to the desired retirement date. This will be managed and administered as a case of leave without pay pending retirement.

Approval of retirement benefits for the period up until normal retirement, in particular the medical aid subsidy and staff/pensioner tuition rates, is at the discretion of the accountable DVC or EDHR.

In the case that the application is approved the staff member will apply for the period prior to reaching the age of 55 as leave without pay and without rights. The staff member will become a dormant member on the UCTRF which means that no contributions will be made for UCTRF contributions or life or disability cover until the age of 55.

During the period of dormancy the staff member will:

not be eligible for death or disability benefits during the period of dormancy;
be entitled to staff tuition rates as per the staff tuition rate policy;
not be eligible for the medical aid subsidy however the individual may continue as a member at their own cost

At the age of 55 the normal early retirement process will be initiated including the commencement of retirement benefits. The staff member will then be eligible for:

contribution to and the associated cover for death and disability benefits (separate life cover only) until the age of 65;
staff tuition rates as per the staff tuition rate policy;
medical aid subsidy.

Incentivised early retirement

Early retirement arises when for operational and/or transformational reasons a Head of Department may apply for the incentivised early retirement of a staff member, with the support of the staff member. This would take place any time after the staff member attains the age of 55 and before the year in which they turn 65. A package would be negotiated with the EDHR, and be subject to the approval of the Vice Chancellor and the Remuneration Committee of Council.

Reasons for incentivised early retirement:

To facilitate the reorganisation of an area or unit; and /or

In order to retain or advance staff who are promotable; and / or

In order to advance an employment equity plan, or for employment equity reasons. Policy principles - appointment post retirement

The appointment of an individual after the age of 65 will not normally be possible but may be approved subject to certain conditions.

The appointment of an individual after early retirement is possible, subject to certain conditions.

The appointment of an individual after an incentivised early retirement will not take place unless as part of the contract of agreement.

Appointment post retirement

The appointment of an individual after the age of 65 will not normally be possible. It may however take place on final approval of the Vice Chancellor's nominee for academic staff and the EDHR for PASS staff, on the following grounds:

The appointment takes place in order to finish a specific project or body of work. A motivation and detailed plan outlining the actual body of work must be submitted for approval. The post retirement contract must specify an end date in all cases except for that of a Senior Research Fellow.
Where there is an identified need to transfer specific skills. Clear objectives and outcomes must be detailed in the contract and monitored on a monthly basis. The post retirement contract must specify an end date.
Where as a result of scarce skills there is no other individual who can be appointed to the post. The skills must be identified and a plan put forward to accommodate for the transfer of skills and/or for the future accommodation of the scarcity of the skills. The post retirement contract must specify an end date.
Where the individual is appointed as a Senior Research Fellow by the University Research Committee (URC) where one of the responsibilities is to mentor junior academics.
Where the individual is appointed as a Senior Teacher where one of the responsibilities is to mentor junior researchers.

A full motivation and relevant plans must be submitted at least six months prior to the intended appointment. Post retirement appointments will be reported to the University HR Committee (UHRC).

Appointment post early retirement

The appointment of an individual after early retirement is possible subject to the following conditions:

The individual has not attained the age of 65.
The contract will not extend beyond the year in which the individual turns 65.
The appointment is subject to normal recruitment and selection criteria including EE criteria.
Conditions of service pertaining to the contract will be adhered to. This includes contributions to the UCTRF where included in the conditions of service.
Any medical aid subsidy will cease to be awarded during such time as the 'retiree' is employed at UCT. When returning to the status of 'retiree' award of the medical aid subsidy as at time of re-employment will resume.

Appointment post incentivised early retirement

The appointment of an individual after an incentivised early retirement will not take place unless as part of the contract of agreement of the incentivised early retirement as approved by the Vice Chancellor.

The following conditions will apply:

The contract will not extend beyond the year in which the individual turns 65.
Conditions of service pertaining to the contract will be adhered to. This includes contributions to the UCTRF where included in the conditions of service.
Medical aid subsidy will not be awarded during such time as the 'retiree' is employed at UCT. When moving to or returning to the status of 'retiree' award of the medical aid subsidy as at time of retirement will resume.