Sainsbury's
Retirement: responding to staff
Sainsbury's flexible retirement policy was introduced in recognition of demographic changes by HR and Pensions departments. It also became evident that colleagues were not saving as they should be, were changing employers rather than remaining with one employer for life, and as a result found it increasingly necessary to continue working beyond NRA.
Sainsbury's were also aware that the work-load of colleagues was increasing steadily, and that it was necessary to introduce a strong element of flexibility in work/life balance policies, including flexibility as part of retirement. Sainsbury's was keen to extend existing flexible working arrangements to offer colleagues more flexibility and choice over their retirement. This was facilitated by enabling them to reduce their work-load by various means without losing pension rights. In this way, colleagues could strive towards an acceptable standard of living, aiming to equalise disposable income prior to retirement.
Until 1998, Sainsbury's operated a final salary pension scheme (which is still applicable to those who joined the organisation up to June 1998). Their NRA is now 65 for men and women, and the flexible retirement policy currently in operation means that colleagues may leave at any time between the ages of 50 and 75 (described as a "25-year window"). Under the new scheme, colleagues who wish to stay on beyond NRA can make use of their pension and continue to accrue additional pension.
The policy has resulted in increased staff retention. It has also meant that, post NRA, Sainsbury's can retain motivated colleagues who still have much to offer the organisation. Colleagues have responded positively to the implementation of flexible retirement. In addition, the policy has significantly simplified retirement options, and facilitated a new flexibility to move between full and part-time work and make adjustments to work/life balance. Sainsbury's intends to review and evaluate the impact of the policy on an ongoing basis.
All policies will be reviewed to ensure they comply with age laws in 2006.
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Retirement: responding to staff
Sainsbury's flexible retirement policy was introduced in recognition of demographic changes by HR and Pensions departments. It also became evident that colleagues were not saving as they should be, were changing employers rather than remaining with one employer for life, and as a result found it increasingly necessary to continue working beyond NRA.
Sainsbury's were also aware that the work-load of colleagues was increasing steadily, and that it was necessary to introduce a strong element of flexibility in work/life balance policies, including flexibility as part of retirement. Sainsbury's was keen to extend existing flexible working arrangements to offer colleagues more flexibility and choice over their retirement. This was facilitated by enabling them to reduce their work-load by various means without losing pension rights. In this way, colleagues could strive towards an acceptable standard of living, aiming to equalise disposable income prior to retirement.
Until 1998, Sainsbury's operated a final salary pension scheme (which is still applicable to those who joined the organisation up to June 1998). Their NRA is now 65 for men and women, and the flexible retirement policy currently in operation means that colleagues may leave at any time between the ages of 50 and 75 (described as a "25-year window"). Under the new scheme, colleagues who wish to stay on beyond NRA can make use of their pension and continue to accrue additional pension.
The policy has resulted in increased staff retention. It has also meant that, post NRA, Sainsbury's can retain motivated colleagues who still have much to offer the organisation. Colleagues have responded positively to the implementation of flexible retirement. In addition, the policy has significantly simplified retirement options, and facilitated a new flexibility to move between full and part-time work and make adjustments to work/life balance. Sainsbury's intends to review and evaluate the impact of the policy on an ongoing basis.
All policies will be reviewed to ensure they comply with age laws in 2006.
Click icon to download a printable version of the case study
download pdf
