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The Human Resources Institute of New Zealand

Human Resources Institute of New Zealand (HRINZ) is the professional body for those involved in Human Resource Management and the development of people.

HRINZ represents the interests of 3,000+ individual members who make up around 45% of the known New Zealand HR market. Read More

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Retirement and Pensions

Retirement is another way in which an employment agreement is terminated, however, the effects of retirement are so much more for most people. As it is a dramatic change of lifestyle and social status; one day your working, the next your not!
As there is now no fixed age for retirement it is important for organisations to agree on the date and timing of a person's retirement.  Many employers will assist their employees who have been long servicing with this transistion. 

Generally, there it is the responsibility of the HRM to devise suitable retirement benefits for the employees.  HRM at the time of recruitment itself has to foresee the career an employee could have.  Therefore it needs to create an appropriate superannuation/pension scheme for the employees. 

There are two forms of common retirement processes:
Early retirement: Which allows employees to retire earlier than the 'normal' retiring age. However, some organisations encourage this practice to reduce staff numbers, clear succession or promotion blockages.

Phased retirement: This a more widely used approach where the employer makes preparation for the employee to phase in the retirement to avoid the abrupt change in circumstances, by reducing their workload over a period of time agreed, so that they withdraw gradually from the organisation and full time paid employment. 

Please note that it is unlawful under the anti-discrimination provisions of the Human Rights Commission to require an employee to retire on the grounds of age, therefore no employer can state in employment contracts or policies an retirement age.

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Disclaimer: This information has been written for and submitted to HRINZ for publication and has been published in good faith for the general information of HRINZ Members of the Institute. HRINZ accepts no legal responsibility for the contents of the Knowledge Base and appropriate professional advice and assistance should be sought in particular cases.

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