Seeking Your Input: How Can We Improve Our Company's New Retirement Policy Proposal?

Hello Everybody,

Recently, my company is planning to implement a retirement policy. I have drafted a proposal, which is attached here. Please provide your suggestions on this matter.

Looking forward to your help.

Thanks,
Luza

Thank you for your comment, but can you tell me what you meant by unclear language? I tried to make it as simple as possible. That's why I need your suggestion.

Best regards

Dear Luza,

"Comes into effect whenever a staff is 58/60 years old or has completed a consecutive service length of 25 years, whichever is earlier."

In my opinion, there is no need to give the maximum service length of 25 years. For example, suppose an employee has joined at the age of 25 years. After 25 years of service, they would still be 50 years old, meaning they will retire by the age of 50. The retirement age should be a flat 58/60 years.

In the heading "Entitlement of Benefits upon Retirement," "All employees" can be replaced by "All regular employees," specifically mentioning that contract, casual, trainee employees, etc., are not eligible or covered under this scheme.

Instead of asking for the option from the employee directly, the first recommendation may be taken from the HOD to determine whether the extension can be proposed for the employee or not. Also, avoid using the word "right," as in "The right of the employee to request for reappointment."

Also, avoid using "Contractual re-appointment." Instead, "Consultant" or "Retainership" can be used.

Dear Luza,

As Mr. Rajeev rightly said, you can maintain the retirement age as either 58 or 60 and not based on the years of service. The clause pertaining to the request of an employee for an extension of his service is looking odd. Probably you can remove that clause. Instead of that, you can mention that "in case services of an employee are required, the respective HOD has to give a request for an extension of service for a ___ period, and it will be considered subject to the approval of the Approving Authorities."

In the settlement of benefits clause, you may mention that within a period of 30 or so days from the date of his retirement, the retired employee will receive all the retirement benefits. Some companies are paying on the retirement date itself. Probably you can consider this as well.

Regards,

A B Srinivasan

Dear Srinivasan & Rajeev,

If a company needs the services of its retired employee immediately after retirement, which type of contract should we use? Is the employee eligible for all benefits that were provided by the company before retirement, such as annual leave, casual leave, medical, etc.?

A prompt reply would be appreciated.

Cheers,
Chandan Kumar