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Retirement/Transition Options for Employees

Whatever happened to the concept of retirement? 

The traditional concept of retirement is gone!  Changes to tax and superannuation laws now mean that ANU employees can access a much wider range of options to tailor flexible later career pathways, with a view to ensuring a fulfilling and productive transition from full time employment to other alternatives. Specifically, staff can request options such as part time work, flexible work arrangements, refocusing of duties etc. to tailoring work arrangements to changes in life commitments.

Are you in the know?

If you are over 55, have you even thought about planning the transition phase of your career?  Retirement, superannuation and tax is a complex area.  ANU encourages you to equip yourself with the knowledge required to ensure you make the right decisions at the right time to maximize your financial and general wellbeing.  ANU encourages you to talk to with your supervisor, your superannuation fund and financial advisor to inform these decisions.

Quick facts…

Much has changed in the world of taxation and superannuation, and ANU’s approach to transition options in the last couple of years, for example, did you know that:

  • For individuals over 60, Unisuper pensions are tax-free!
  • For some employees, their net income from superannuation may be comparable to (or more than) their net income from working full time.
  • You can apply to work part time and still maintain your superannuation defined benefit at the full time equivalent.
  • You can seek to negotiate a transition arrangement that lets you do the things you most enjoy at ANU and avoid those things you’d rather not spend time on (eg. admin!)
  • You can maintain a valued presence at ANU following accessing your superannuation. 

Some ideas to get you started…

Following is some ideas to start you on your journey of understanding the menu of options available to transition from full time employment to other alternatives.

 

Changed working arrangements

A transition package can be tailored to incorporate a fixed term contract, and a range of other alternatives for example:

  • non-superannuable salary loading
  • reduced/flexible working hours
  • refocusing of your activities (eg. increase research focus, reduced administrative or teaching load etc) ,
  • work related travel,

Reduced/flexible hours

Your work hours can be reduced (ie. fractional appointment).  A variety of options exist: eg. Weekly hours could be reduced, or you may opt to work one semester only each year, job share etc.

Your working conditions may be varied (eg. refocusing your activities to a research focus, reduced administration, lesser responsibility etc)

Unisuper members: You should seek independent financial advice, however ANU understands that the option exists for you to fund (via payroll deductions) the shortfall in employer and employee superannuation contributions at the full time equivalent (in order to maximise your final retirement benefit).

Comsuper (PSS) members: You should seek independent financial advice, however ANU understands that conversion to part time employment does not impact your final average salary, but will see your retirement benefit grow at a slower rate for the years you work part time.

Comsuper (CSS) members: You should seek independent financial advice, however ANU understands that conversion to part time employment does not impact your final salary, but will see your retirement benefit grow at a slower rate for the years you work part time.

If the fractional salary is insufficient to meet your day to day living needs, you could opt to

  • utilise long service leave entitlements to fund time not worked.
  • combine this option with a transition to retirement pension

Leave Without Pay

You can take a period/ or periods of leave without pay. Superannuation is not normally paid during LWOP, however, fund members should note the following and seek their own independent financial advice.

Unisuper members:  For longer periods of LWOP (eg >3 months) the option exists for you to maintain the shortfall in employer and employee superannuation contributions at the full time equivalent (in order to maximise your final retirement benefit).

Comsuper (PSS) members / Comsuper (CSS) members: Are required to fund both employer and employee contributions for absences of 12 weeks or less, for longer periods of LWOP contributions are not normally payable. 

Its not goodbye…

Accessing your superannuation, as opposed to earning a salary does not have to mean severing ties with the ANU or the academic community.  The University highly values the contribution made by individuals outside traditional employment scenarios. ANU recognizes that after a long and successful career, many may like to relax and enjoy a traditional retirement.  For some, this is not attractive, and ANU encourages you to reflect on the part of your job you find most rewarding, perhaps with a view to making a contribution to ANU in this field as a superannuant. For example:

  • mentoring early career researchers
  • supervising students
  • research, publication

In some cases, you may like to make your arrangements to maintain a presence at ANU, such that the change in your appointment is indistinguishable to the rest of the ANU and wider academic community. ANU respects this need, and would be prepared to enter into confidential discussions.

In addition, ANU can offer a range of incentives to honorary appointees to recognize the invaluable resource that comes with the decades of experience in research, teaching and other scholarly pursuits, for example:

  • Conferring honorary academic status
  • Infrastructure support (research equipment, administrative assistance);
  • Office space, laboratory time, workshop time;
  • Access to computer, email and office facilities;
  • Access to, or provision of, small grants to be used for the purpose of research support including travel, purchase of research equipment including computers, employment of research support staff and the like;
  • Provision of conference travel support.

Where operational needs dictate ANU may consider extending an offer of employment (on a casual or fixed term) basis, to an employee following a break after employment.  You should note, that such an offer cannot even be contemplated until an assessment of operational requirements is undertaken by ANU at least three months following cessation.

Where to now?

ANU encourages you to discuss with your supervisor how we can help tailor a pathway towards retirement that suits your needs. If you would prefer to have this discussion at a confidential level with a senior central HR representative, ANU is happy to facilitate this option.  You also need to seek your own advice, and a great starting point is to talk to your superannuation fund, your taxation accountant, and a professional financial advisor (Don’t forget to ask your supervisor whether they would be willing to assist with funding the cost of the financial advice!).