6.1. Flexible Retirement
6.1.1. Members of the USS pension scheme, who wish to access a portion of their pension benefits while continuing to work in a reduced capacity prior to full retirement, can make a request for flexible retirement. Members of the CPS pension scheme, can also make a request for flexible retirement should they wish to access their full pension whilst continuing to work at the University in a full or part-time capacity for a period prior to full retirement. An employee wanting to make a request for flexible retirement should seek advice from the University’s Pensions Section.
6.1.2. The rules of the USS allow a scheme member to draw part of their pension whilst continuing to work and receive a part-time salary. The minimum reduction in current working hours and salary under this arrangement is 20% and the maximum pension that can be drawn is 80%. An employee wishing to take advantage of the flexible retirement option should first seek guidance about the terms of the scheme from the University Pensions Team.
6.1.3. Members of the CPS pension scheme, who wish to access their full pension whilst continuing to work and who do not wish to change their working hours, must complete the letter at the following link, CUACPS flexible retirement and return this to the University’s Pensions Section. If a member of the CPS pension scheme wishes to access their full pension whilst continuing to work and change their working hours, they should follow the process as detailed in section 6.1.4 below.
6.1.4. If an employee wishes to request flexible retirement, they should complete form RP4: Application For Flexible Retirement for the consideration of the Head of Institution.
6.1.5. If the employee is a University officer and the period of flexible working requested will not extend beyond the retirement age, agreement can be reached as outlined in paragraph 6.1.4. However, if the proposed period of flexible working extends beyond the retirement age then they will need to make a separate application to continue working beyond the retirement age on a part- time basis. For further information, please refer to Section 7: ‘Procedure for University Officers to Continue Employment ’.
6.1.6. University officers in General Board institutions who wish to take flexible retirement will require the permission of the Head of Institution, in consultation with the Academic Secretary, and the Faculty Board where appropriate. University officers in Council institutions who wish to take flexible retirement will require the permission of the Head of Institution, in consultation with the Registrary. The relevant HR Business Manager will be able to advise the employee and Head of Institution of the process for seeking the necessary approval.
6.1.7. The employee will be advised of the outcome of their flexible retirement application in writing. If the request is approved, the employee will receive a letter confirming that they have been granted leave to work part-time and setting out the new contractual working arrangements.
6.1.8. If the employee is a member of the NHS pension scheme, they should consult the HR Team for the School of Clinical Medicine before considering flexible retirement.
6.2. Re-employment or Re-engagement of Retired Employees
6.2.1. It is recognised that there will be occasions when an individual has fully retired from the University but wishes to return either as an employee or as a worker via the Temporary Employment Service. Before considering a return to the University, the individual and/or the recruiting manager should consult the Pensions team to establish whether the individual’s pension scheme permits re-employment or re-engagement.
6.2.2. The following information is correct as at 1 October 2019. However, the rules of the different pension schemes are amended from time to time so it is important to seek up-to-date information before making a decision to return to the University.
6.2.3. The Cambridge University Assistants Contributory Pension Scheme (CPS)[1] rules do not include any restrictions on the re-employment or re-engagement of retired employees in receipt of a CPS pension.
6.2.4. The Universities Superannuation Scheme (USS)[2] rules set conditions around the re-employment or re-engagement of fully retired employees in receipt of a USS pension. Within the first month, a USS pensioner cannot be employed in any capacity by the employer from which the retirement took place. After the first month, re-employment is possible providing that:
- At the point of retirement there was no intention on the part of the University to re-engage the member of staff; and
- The member of staff has not taken early retirement and drawn their USS pension as part of a redundancy package.
6.2.5. It cannot be agreed with an employee before they retire that they may return to work at the University at a later date. This would be against the spirit of the USS rules, which define retirement as “ceasing employment which gives eligibility for membership of USS with no expectation of taking up another employment which would give the member an entitlement to join USS”. Individuals who are retiring are required to complete a written declaration to this effect.
6.2.6. If the retired employee is a member of the NHS pension scheme, they should consult the HR Team for the School of Clinical Medicine before considering re-employment or re-engagement.
6.2.7. As part of the pensions auto-enrolment provisions, any retired employee that is re-employed or re-engaged will be auto-enrolled into the relevant pension scheme for the new post and will subsequently be able to opt out of those arrangements if they so wish.