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Last updated
30/08/2024

Policy statement

Implementation date
30/08/2024
Reference number
PD-2024-0486-02-V01.0.0
Publicly available
Yes
Policy cluster
People

Transition to retirement

Direction and guidance for employees planning to retire and their managers. These procedures are to be used in conjunction with the Leaving the department procedure.

Audience

Employees considering retiring from the department and their managers.

Version Date Description of changes Approved by

V01.0.0

30/08/2024

Under the 2023 Policy and procedure review program, new policy document developed.

Chief People Officer


Ongoing union consultation is occurring and amendments may be made from time to time.


About the policy

Under the Workforce planning and management policy, the department is committed to maintaining a capable, well-managed, and sustainable workforce, and delivering educational services of the highest quality by:

  • making it as simple as possible for employees to resign or retire from the department and providing principals and hiring managers with all the support and guidance they need for succession planning and to procure replacement staff in a timely manner
  • giving employees more career flexibility within the department, by providing streamlined procedures to allow a smooth transition to casual or part-time employment, including transitioning to retirement.

Term Definition

Annual leave

A paid entitlement for 4 to 5 calendar weeks per year for full-time Teaching Service employees. It must be taken in the first week of each student vacation break as determined by the department. Teachers in the Western Division get one extra week of annual leave to be taken as the second week of the summer student vacation break. Also referred to as ‘non-attendance during non-term weeks’.

Education support staff (ESS)

All employees working in education support offices including public service senior executives, public service non-executives and non-school based teaching service (NSBTS) employees. Previously referred to as ‘corporate staff’.

Employee

A person with a permanent or ongoing role in the department.

Last day of duty

An employee’s last day at work. If an employee goes on leave before separation, the last day of duty is the last workday before their leave starts.

Last day of service

An employee’s last day of employment with the department.

Manager

The reporting line manager of an employee, including principals.

Non-school based teaching service (NSBTS)

A member of the teaching service who takes up a position as an education support staff employee. Generally, duties of a NSBTS must relate to the development or implementation of the curriculum and/or the learning and wellbeing of students. NSBTS classifications are Senior Education Officer Class 1 (SEO1), Senior Education Officer (SEO2) or Principal Education Officer (PEO).

Offboarding

The process of deactivating access rights and passwords, as well as collecting feedback from exiting employees, to mitigate risks and potential losses in the separation process.

Permanent

Refers to employment in the department against an established position:

  • in ‘ongoing’ employment under the Government Sector Employment Act 2013
  • in ‘permanent’ employment under the Education (School Administrative and Support Staff) Act 1987
  • as an ‘officer’ under the Teaching Service Act 1980.

Recreation leave

A leave entitlement provided to education support staff including non-school-based teaching service employees for rest and recreation away from the work environment.

Retirement

The action of ceasing one’s work or occupation at the end of a career, to experience a new phase of life.

Role

A position in the department including:

  • a ‘position’ or ‘office’ under the Teaching Service Act 1980
  • a ‘role’ under the Government Sector Employment Act 2013.

SASS

School administration and support staff. A department employee under the Education (School Administrative and Support Staff) Act 1987.

School-based employee

A department employee whose work location is within a school.

Student vacation (period)

The days of the year in between the last day of each school term and the first day of the next school term. Sometimes known as ‘school holidays’ and ‘non-term weeks’.

Teacher or Teaching Service

A department employee or group of employees under the Teaching Service Act 1980. Includes non-school based teaching service (NSBTS) employees.

Vacation pay

When a permanent or temporary school-based employee is not required to work during a student vacation period and is paid during that period. Includes pay during annual leave.

Employees:

  • are encouraged to discuss their transition to retirement plans with their manager, before submitting their separation/retirement request
  • are encouraged to get independent, personal financial advice to discuss their financial position and options before submitting their separation/retirement request
  • may request a gradual transition to retirement
  • must submit a separation request in SAP.

Managers (Clerk 11/12 and above):

  • may discuss retirement plans with employees at annual reviews, including expected retirement dates and retirement goals
  • are encouraged to work together with an employee to consider a gradual approach to retirement
  • may provide resources and support for planning for retirement
  • must create and implement a transition plan with the employee
  • must remain aware and routinely check for unconscious age-related biases in the continued management of the employee.

Payroll:

  • must always notify the relevant superannuation fund when a member retires.

What needs to be done

1. Consider retirement

There is no retirement age in Australia, however, to be eligible for the Age Pension (refer to Who can get it) a person must:

  • be aged 67 years or older
  • be an Australian resident and have lived in Australia for at least 10 years
  • meet the income and asset tests.

Employees considering retirement are encouraged to:

  • consider their options for different working arrangements while transitioning to retirement
  • check their available leave entitlements and consider when and how to use them
  • consider approximate dates for their last day of employment (service)
  • consider whether they have reached preservation age to access their superannuation
  • get independent advice about the personal and financial implications of these decisions.

1.1 Considering a gradual approach to retirement

Employees can:

  • choose how and when they wish to approach retirement
  • consider a planned, gradual approach to retirement that is mutually beneficial to them and the department.

Benefits include:

  • The department benefits from the employee’s expertise and experience and can implement effective succession plans.
  • The employee continues to earn an income and superannuation, while establishing their life beyond retirement.
  • The employee continues to foster social connections and remain intellectually stimulated.

Employees are encouraged to consider how they wish to work up until their last day of duty. This may include:

  • reducing their regular working hours or days
  • reducing their responsibilities
  • changing roles.

1.2 Review leave entitlements

Employees are encouraged to:

  • review their recreation and extended leave entitlements
  • plan if and when they will take leave before their last day of service.

Recreation and extended leave balances and accrued vacation pay remaining after an employee’s last day of service will be paid out as a lump sum in the employee’s final pay.

Employees can check their leave balances and projected future leave balances in SAP ESS.

Supporting information

1.3 Consider dates for last day of duty and last day of service

Employees must consider the date of their last day of duty and last day of service.

School-based employees are encouraged to review the effect of these dates and leave to be taken on vacation pay and annual leave.

School-based employees separating while on leave of absence may choose their last day of service to be either:

  • the date the separation request is submitted
  • another future date on or before the end of the approved leave.

If the separation request is submitted after the end of approved leave:

  • and the teacher did not return to duty, the teacher may request their separation date as the date the separation request was submitted, or the date of their last day of approved leave
  • and the employee did not return to duty, the employee may request their separation date as the date the separation request was submitted or the date of their last day of approved leave.

Supporting information

Teachers:

School administration and support staff:

1.4 Consider personal and financial implications

Retirement, superannuation and tax are complex areas. The department encourages employees planning to transition to retirement to be informed and make decisions to maximise their financial and post-retirement wellbeing.

Employees are responsible for seeking independent advice about the personal and financial implications of their transition plans and retirement.

Issues to consider may include:

  • funding of life after retirement, such as superannuation balances and investment options
  • eligibility for government benefits such as Age Pension or seniors' concessions
  • eligibility to supplement a part-time working income with superannuation, if the employee has reached ‘preservation age’, and its effect on taxation obligations
  • effects of receiving lump sum payments, including paying out of leave balances and leave loading on taxable income
  • effects of taking leave at double pay or half pay, or taking leave without pay, on the accrual of other entitlements and benefits such as vacation pay, recreation leave, leave loading and superannuation
  • effects of giving money, lending money or acting as a loan guarantor on the employee’s Age Pension, legal rights and financial position
  • for school-based employees, the effect of the employee’s last day of service on their vacation pay.

Supporting information

All employees:

Teachers:

School Administrative and Support staff:

Non-school based teaching service (NSBTS) staff:

2. Have a conversation about retirement

Employees are encouraged to discuss their retirement plans with their manager informally. Discussions may take place several months or years before the employee wishes to retire, and before plans are made for their transition to retirement.

Managers must:

  • consider how the employee’s desired way of transitioning to retirement can be achieved while still meeting the business area or school’s operational needs
  • remain aware and routinely check for unconscious age-related biases in their continuing management of the employee.

Managers are encouraged to include the following topics in discussions:

  • how the employee would like to transition to retirement, for example, reducing working hours, reducing responsibilities, changing roles
  • the employee’s remaining leave entitlements and plans to take leave
  • the employee’s participation in succession planning, such as job sharing, transferring knowledge
  • for teachers, whether they want to or would consider returning to casual employment.

2.1 Supporting employees

An employee may face many barriers to retirement, although barriers do not mean that retirement is not an option. The manager may help empower the employee to overcome barriers by providing information, referring them to different resources and supports.

Barriers to retirement may include:

  • strong connections to the workplace such as social or intellectual stimulation
  • financial concerns
  • health and aged care concerns
  • housing concerns
  • family concerns
  • resistance to change.

Resources and support services for the employee may include:

  • government services such as Services Australia (including Centrelink) and the Australian Tax Office (ATO)
  • financial services such as the employee’s superannuation fund or independent financial advisors
  • personal support via the Employee Assistance Program (EAP) (staff only).

Supporting information

2.2 Retiring while under investigation

The department may choose to not accept a request for retirement if the employee is the subject of unresolved investigations by Professional and Ethical Standards (PES).

Supporting information

2.3 Medical retirement

A permanent employee may medically retire if medical advice indicates that they are permanently unfit to perform the duties of their substantive position.

A medical retirement may be initiated by the employee or the department.

Supporting documentation from medical practitioners is required.

Employees facing medical retirement are encouraged to seek independent advice about early access to their superannuation if they have not yet reached preservation age (refer to preservation age).

Supporting information

3. Create a transition plan

The manager and employee are encouraged to document a plan, and periodically review and update it when necessary.

The plan should include:

  • how a transfer of knowledge will be completed
  • the employee’s desired working arrangements up to retirement
  • general timeframes for different activities until retirement, for example
    • when a reduction in hours will start and how many weeks/months they will work those hours before reviewing the arrangement or reducing those hours again
    • when planned leave will be taken (such as recreation leave or extended leave)
    • when new employees are expected or planned, and responsibilities of the retiring employee with the new employee’s training and development
    • proposed last day of duty and last day of service
    • their goals before retiring
    • when they will review the plan.

If relevant, the manager may update the performance and development plan (PDP) with changes in responsibilities or goals.

The manager may email a copy of the agreed plan to the employee as a record of their discussions.

3.1 Transfer of knowledge

The manager and the employee must prepare for a transfer of knowledge (handover) before the employee’s last day of duty.

Supporting information

3.2 Request changes to work arrangements

Employees may request different work arrangements in their transition to retirement.

This section lists some common options used in an employee’s transition to retirement.

All changes to work arrangements are subject to manager approval and operational needs.

Note: The procedures for requesting and processing work arrangements may be different for different employee groups. These are listed by employee groups where required.

Employees may request to reduce their days or hours worked by:

  • requesting part-time leave without pay
  • using accrued recreation leave (ESS) or extended leave days, for example, taking one day of leave per week.

Classroom teachers

Full-time classroom teachers are generally unable to reduce their workdays or hours to part-time, without the other portion of their role being filled by another teacher. Classroom teachers may be able to effectively reduce their working days or hours with job share arrangements (as outlined in ‘Request job share arrangements’ below).

If the principal supports the teacher’s request to reduce their days or hours worked, the principal must contact the Teacher Recruitment team.

The Teacher Recruitment team will help the principal process and manage the request. This may include approving leave requests, using staffing relief procedures or making other arrangements to support both the school’s operational needs and the retiring teacher’s reduced working hours.

School Administrative and Support Staff (SASS)

If the principal supports the SASS employee’s request to reduce their days or hours worked, the principal must contact the School Support Staff Recruitment (SSSR) team.

The SSSR team will help the principal process and manage the request. This may include approving leave requests, using staffing relief procedures or making other arrangements to support both the school’s operational needs and the retiring employee’s reduced working hours.

Education Support Staff (ESS)

If the manager supports the ESS employee’s reduction in days or hours worked, the employee must:

The manager must:

Job sharing is where a role is shared between 2 employees and each employee is paid and earns entitlements for their part-time hours.

A job share arrangement for an employee’s transition to retirement is temporary, until the retiring employee’s last day of duty. Therefore, the second role in the job share may only be filled by temporary assignment or temporary engagement.

To create a job share arrangement:

  • The manager and employee must consider whether the role is suitable for job share. For example, how the position could be carried out by 2 people – splitting responsibilities, sharing the full range of duties only separated by the time each employee is at work, or a combination.
  • The manager and employee must consider options for filling the other portion of the job share role. For example, with employees at the same level, or a vertical job share.
  • The manager must consider and get approval for any additional budget beyond 1.0 FTE. A job share role may sometimes require slightly more than 1.0FTE to allow for efficient handovers, joint meetings with line managers and stakeholders, and for joint decision-making.

Refer to Job Share Guide for Managers (PDF 6 MB)

Education Support Staff

  • The manager must contact EDConnect to begin the process of creating the job share arrangement. Refer to Types of flexible work.
  • If required, the Corporate Recruitment team can help to find a suitable candidate for the second role.

School-based roles

  • The principal must contact the relevant recruitment team. The recruitment team will help to create the job share.
  • If required, the recruitment team can help to find a suitable candidate for the second role.

This may happen at the same time as reducing working hours or days and job share arrangements.

Other ways that an employee may change their responsibilities may include temporary assignments to other roles in the department.

3.3 Submit leave requests

The employee must submit their leave requests and their manager must approve them in SAP.

Supporting information

4. Review the transition plan

The employee and their manager must review their transition plan periodically as agreed.

The review should include:

  • progress on transfer of knowledge
  • how effective the working arrangements are for both the employee and the manager
  • whether there are changes that could improve working arrangements
  • whether there are changes to the timeframes in the plan
  • progress towards the employee’s goals.

Managers and employees must review flexible work agreements at least every 6 months.

If the working arrangements are changed, the employee must complete a new HR Flexible Work Agreement form.

Refer to the Flexible working procedure.

5. Check and update personal information

Employees must check their personal details in SAP and update them if required.

The department uses these details for administrative and payroll purposes, so it is important that they are up to date before their last day of duty.

Supporting information

6. Submit a retirement request

Employees must submit a separation request through Employee Self-Service (ESS) in SAP with:

  • the date of their last day of duty – If taking leave before separation, the last day of duty is the employee’s last working day before the requested leave starts
  • the date of their last day of service/employment
  • the ‘Reason for leaving’ recorded as ‘retirement’.

Notice periods vary depending on employee group.

Employees must check their Award (refer to Awards and determinations) and ensure they submit their separation request in line with the minimum required notice period.

Teachers taking more than 4 weeks of leave immediately before retiring and willing to separate from their position while on leave are encouraged to submit their separation request as early as possible before taking leave.

Supporting information

Teachers taking a period of extended leave immediately before retiring may choose to separate from or 'give up' their position before their last day of service.

Teachers on leave without pay, sick leave, or a combination of leave without pay (LWOP) and sick leave cannot relinquish their position.

A teacher choosing to relinquish their position:

  • does not affect the teacher’s access to their conditions including paid leave or superannuation entitlements
  • allows the school to permanently fill the role when the retiring teacher has no intention of returning to duty, meaning the retiring teacher loses their right of return to the position.

If a teacher agrees to relinquish their position while on leave, the teacher must add to the ‘Notes’ section of the separation request:

  • that they are relinquishing their position
  • the effective date of relinquishment.

Supporting information

Teachers may automatically receive casual teacher approval when they separate from the department. If a retiring teacher would like to return to casual teaching after retirement, they:

  • may request their principal to endorse their separation request with a recommendation for further employment
  • are encouraged to review how to maintain their accreditation and how to find casual and temporary employment.

Supporting information

7. Approve the separation request

Managers must approve the separation request in SAP.

Supporting information

8. Request an employment separation certificate (optional)

Employees can request an employment separation certificate or a record of employment by logging an online query with EDConnect.

An employment separation certificate may be needed for Centrelink purposes, for example if you are submitting a claim for the Age Pension.

Supporting information

9. Offboard employees

Payroll must always notify the relevant superannuation fund when a member retires.

Managers must offboard their employees according to Leaving the department.

Record-keeping requirements

Record Classification Disposal action

Employment/service history of personnel

GA28 15.4.1

State archives

Appointments, employment history, successful applicants, and separation from the organisation

GA28 15.4.3

Retain minimum of 75 years after date of birth or minimum of 7 years after employment ceases, whichever is longer, then destroy


Supporting tools, resources and related information

Teachers:

School administration and support staff:

Non-school based teaching service (NSBTS) staff:

Education Support Staff (ESS)

Policy contact

EDConnect
Log an online query
1300 32 32 32

Corporate Recruitment
CorporateRecruitment@det.nsw.edu.au

Teacher Recruitment
TeacherRecruitment@det.nsw.edu.au

School Support Staff Recruitment (SSSR)
sassrecruitment@det.nsw.edu.au

The Executive Director, HR Operations, Policies and Systems monitors the implementation of this procedure, regularly reviews its contents to ensure relevance and accuracy, and updates it as needed.

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