Easing gradually into retirement: Keys to holding onto older workers (Web Sight)

With a large chunk of the working population preparing to retire, more employers are faced with the possibility of a gaping hole in the workforce. Because of this, a renewed interest has arisen in delayed and phased retirement plans. But how can employers make phased retirement an attractive alternative for older workers? These sites address the reality of the aging workforce and legislative concerns, and offer insights into phased retirement as an option.

Start with the Government of Canada
http://labour.hrdc-drhc.gc.ca/worklife/aw-retirement-options-04-en.cfm

This site from the federal government offers a wealth of information on all aspects of retirement. Although the main page is geared toward the employee, the employer will find many of the links quite useful. It outlines different retirement options, and the types of benefits received under each level or option. Follow links to find articles on collective agreements and older workers in Canada, delayed retirement, working after retirement, legislative frameworks and more. There are links to the left of the main page that will take the user to some key research by Human Resources Development Canada on the aging workforce. There really is something for everyone here.

Retiring mandatory retirement
http://was4.hewitt.com/hewitt/resource/legislative_updates/canada/advisory_072003.pdf

This research advisory from consulting firm Hewitt highlights Ontario’s proposed Bill 68, the Mandatory Retirement Elimination Act, 2003, which, if passed, will have “implications for benefit and pension plan sponsors and raise the profile of issues such as phased retirement and flexible work practices.” The advisory outlines what the proposed changes are and what they mean to workers and employers under the Ontario Human Rights Code. It goes on to discuss the impact Bill 68 will have on benefit issues (including long-term disability, life insurance and benefit costs), as well as pension plan issues to consider, such as defined contribution plans, investment education, phased retirement and more. If passed, the bill is slated to take effect Jan. 1, 2005.

Tackling the problem outside Canada
http://www.aarp.org/international/Articles/a2002-09-10-international_unece.html

This article from AARP (formerly the American Association of Retired Persons) puts an international focus on the labour shortage crisis. “In the United States, Canada, and the countries of the European Union, work after age 65 has become the exception, rather than the rule. In many of these countries, in fact, fewer than five per cent of persons aged 65 and older remain in the labour force.” The article goes on to explore what some countries are doing to retain older employees. It also makes suggestions to encourage employers and employees to look more seriously at the benefits of extending work-life.

Avoiding stumbling blocks
http://www.hrpao.org/files/wwolderworkers.pdf

The special memorandum on the Human Resources Professionals Association of Ontario site is actually written by Watson Wyatt, and “focuses on action required by the federal government to meet its commitment under the (G8’s) Turin Charter to facilitate the implementation of phased retirement programs.” It identifies unreduced early retirement benefits as being a significant stumbling block when trying to retain older employees, and suggests that “the ideal financial package is a combination of cash, pension income and continuing benefits coverage, taking into account any reduction in working hours.” The memorandum goes on to identify more regulatory and legislative impediments (including CPP and mandatory retirement issues), examine the Quebec/Alberta solution and outline a proposed new model for phased retirement.

Removing legal obstacles
http://www.actuaries.ca/meetings/aging/Smolkin.pdf

There is quite a bit of information on phased retirement to be gleaned from this lengthy paper from the Canadian Institute of Actuaries and the Association of Canadian Pension Management national symposium on aging in 2000. Written by regular Canadian HR Reporter contributor Sheryl Smolkin (see page 7) there is a great deal of information here. It includes a table of contents, so jumping to a section of interest is possible. The paper discusses removing legal obstacles, evaluates the implications of different phased retirement plans, examines programs currently in operation and looks in detail at a number of human resources issues.

Shannon Simson is Canadian HR Reporter’s resource editor. Her Web Sight column appears regularly in the CloseUp section. To share an interesting HR Web site, contact [email protected].

To read the full story, login below.

Not a subscriber?

Start your subscription today!