Human Resources Policies and Procedures Manual  Conditions of Employment PRE-RETIREMENT CONTRACTS

• Policy Statement
• Guidelines
  • Pre-retirement Contracts
  • Salary Loadings
  • Impact on Superannuation
• Recognition of Prior Service
• Voluntary Separation/Early Retirement
• Honorary Appointments

University staff are eligible to retire from the age of 55 years.  In accordance with the Equal Opportunity Act 1984 there is no compulsory retirement age.

The University Senate resolved to adopt a policy on the age structure of staff (Res.38/99).  This provides for employees to plan their retirement in a number of ways and specifically includes pre-retirement contracts, salary loadings for staff on short-term pre-retirement contracts; early retirement packages and honorary appointments for academic staff.

Pre-retirement contracts are offered in accordance with the following guidelines.

GUIDELINES

Pre-retirement contracts are a contract of employment whereby a staff member terminates her or his existing continuous contract and signs a fixed term contract in return for specified benefits.  The fixed term contract may be offered on a part time basis (possibly at 50%).  Academic staff particularly, may work on a one-semester on, one-semester off pattern.  

Pre-retirement contracts offered on a part time basis will allow for the University’s contribution to superannuation as if the contract were full-time, so long as the staff member maintains the full employee payments.

Pre-Retirement Contracts will be made generally available (though not as of right) subject to the approval of the Director of Human Resources on the recommendation of the Administrative Head.

The term of Pre-Retirement Contracts will not be extended.

Staff who retire on a pre-retirement contract will not be re-employed by the University.

Impact on Superannuation
Legislation
Although the University is obliged to contribute the minimum rate of superannuation (currently 9%) in accordance with legislation, Murdoch University currently contributes 17% to superannuation for staff who are employed on continuous contracts or fixed term contracts greater than three years.

Part Time Pre-Retirement Contracts
Pre-retirement contracts offered on a part time basis will allow for the University’s contribution to superannuation as if the contract were full-time, so long as the staff member maintains the full employee payments.

Full Time Pre-Retirement Contracts
Employees considering full time pre-retirement contracts may negotiate one of the following options:

         i.      Continue to contribute the full 17% to Unisuper.

       ii.      Contribute 9% to Unisuper and 8% to another complying scheme.

      iii.      Contribute 9% to Unisuper and pay 8% as extra salary.

     iv.      Contribute 9% to Unisuper and pay 8% as extra salary which may be salary packaged to Unisuper or another complying superannuation fund.

Under options ii, iii and iv, membership to Unisuper Defined Benefit/Investment Choice Plans cannot be reinstated.  Any accrued benefit under these plans will remain on hold until retirement and interest will accrue at a reduced rate.  For those employees in the Defined Benefit Plan, penalties affecting service fractions may occur.  Employees are therefore encouraged to seek advice from Unisuper before entering such an arrangement.

Recognition of Prior Service

Previous continuous service up to the date of conversion to a fixed term pre-retirement contract will be recognized for the purposes of leave entitlements and other conditions in the relevant enterprise agreements.

For example, an employee who enters into a pre-retirement contract may:

• Have any accrued (unused) leave paid out at the end of the current contract, or

• Request that the unused leave carry over to the pre-retirement contract in order that it may continue to accrue until the retirement date; subject to limitations on carrying over unused leave (refer to Leave and Holidays sections in the relevant enterprise agreements).

Voluntary Separation/Early Retirement

Voluntary Separation or Early Retirement packages will be offered to eligible staff in very restricted circumstances when the University needs to reduce staffing in a particular area.  These packages will be offered solely at the discretion of the Division.

Honorary Appointments

The University will enable Administrative Heads to offer honorary appointments to former members of academic staff for a period of two years with a range of benefits. 

Such appointments will be made available (though not as of right), subject to the approval of the Pro Vice Chancellor (Research) on the recommendation of the Administrative Head.

RESPONSIBILITIES

 RELATED POLICIES AND PROCEDURES

Murdoch University (General Staff) Enterprise Agreement

Murdoch University (Academic Staff) Enterprise Agreement

Superannuation Policy & Procedures

Honorary Titles and Appointments Policy

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HTML page created: Friday, 21 January 2000
HTML last modified: Thursday, 11 May 2006
Modified by: Janette Edmunds, HR Web/Recruitment Officer, Office of Human Resources, Division of Administration
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URL: http://www.hr.murdoch.edu.au/staff/policy/PH0006.html