EXCLUSIVE: Fujitsu UK and Ireland has launched a flexible retirement policy.
The new policy enab;es employees over the age of 55 to reduce their working hours in the two years prior to their chosen retirement date with only a partial reduction in pay.
Paula Evans, head of pensions and benefits, UK and Ireland at Fujitsu, said: “That creates a bridge for them to think about what they want to do next in life, whether that is focusing on hobbies or leisure time.
“It enables us to re-invest in bringing new people into the business as well, so it helps us from a succession-planning point of view.”
The policy has been designed through consultation with employees. Evans added: “We have been working together on how to draft it, consulting with our employee forum on it, and ensure we have covered all the points that people are going to want to ask about.”
Employees who choose to use the policy have two options:
- They can reduce their hours to 60% and receive 80% of salary.
- They can reduce their hours to 80% and receive 90% of their salary for the first half of the period of reduced working. They would then reduce to 60% of current hours and 80% of salary for the second half.
The maximum amount of time an employee can take phased retirement is two years and the minimum is six months. Employee can choose the length of time that suits them.
Employees must have five years service to be eligible for the scheme and three months notice is required.
The arrangement is subject to manager discretion.
Evans said: “We feel that this is an innovative way of enabling employees to transition to retirement with our help and support.”