Retirement - HR request a disclaimer re reason leaving

[Northern Guy]

A co-worker friend is soon to retire a few years early. Upon starting the process to draw one of his work pensions, what is about 4 years early, HR emailed him asking for a statement that he was not being pressured or forced to go, in any way.

This seemed an odd request for someone who has just quietly done their job all these years. Is this request normal these days, or are they getting defensive as he exit, lest he bring some kind of claim afterwards, not that there is any hint he might do so? And what might happen if he decline to give them such a statement?

[atticus]

HR may have in mind questions of age discrimination.

Your friend can ask HR what the position will be if he doesn't sign. I am not sure that I can see any legal basis to withhold pension benefits if he is entitled to draw them down without signing such a thing.


ADDITIONAL COMMENT: this seems a clumsy way of seeking evidence that there is no question of age discrimination, if that is the reason for this request. Any attempted sanction for non-signature, or other pressure to sign, can backfire on the company.

[Northern Guy]

HR may have in mind questions of age discrimination.

Your friend can ask HR what the position will be if he doesn't sign. I am not sure that I can see any legal basis to withhold pension benefits if he is entitled to draw them down without signing such a thing.


ADDITIONAL COMMENT: this seems a clumsy way of seeking evidence that there is no question of age discrimination, if that is the reason for this request. Any attempted sanction for non-signature, or other pressure to sign, can backfire on the company.

Thanks for the info and update. Yes it seemed heavy handed to me, almost as if corporate guilty consciences were at work, so to speak. Is this at all common in your experience, or does this HR dept turn rather too quickly to their lawyers? I am likely to follow in his footsteps and retire early next year, and without being a trouble maker, a repeat request to me might rankle.

[atticus]

Sorry, no idea.

[Mayhem007]

It would seem to me that they are trying to establish if the person is not seeking a constructive dismissal claim. Perhaps they are aware of a few issues between the employee and line managers.

[ULA]

Coming to this a bit late, but my experience of someone wanting to retire early and drawn down their pension would be to deal with them as any normal leaver and ensure they are in contact with the company pension provider.

There may be issues in the background that you are not aware of. However of they have a genuine concern then if I was the employer I would be offering your colleague a settlement agreement that would be binding on them not bringing a claim rather than merely a signed disclaimer.

[Northern Guy]

It would seem to me that they are trying to establish if the person is not seeking a constructive dismissal claim. Perhaps they are aware of a few issues between the employee and line managers.

I asked the friend again about this yesterday, and he laughed at the idea this could be fuelled by anything related to him. No, this must be some new 'cover all bases' policy, one that leaves a bad taste with those leaving. Am I to assume they would withhold the pension if, say, the person was leaving with bad blood? The employee has a right to retire and to take action against the employer if he felt aggrieved in some way and had a case, this seems like a corporate try-on bordering on coercion.

[PallasAthena]

Consequences of refusing? What do the pension scheme rules say about drawing pension early? If that requires employer's consent and/or employer to put in money then possibly they could obstruct him getting the pension early. Check with pension administrators.

But if the pension he wants is his entitlement under scheme rules and employer can't prevent him drawing it then he can ignore employer's request. As far as his employment is concerned his retirement is just a resignation. Employers can't prevent him resigning as long as he gives contractual notice nor make it conditional in the way they are trying to do here.

As it's a company wide policy not something specific to your friend you may well be right that some HR person has come up with the idea to try to give them a defence to a subsequent constructive dismissal claim. But employees who are resigning do not have to comply.

[Mayhem007]

1. The employer has no rights, with the pension providers, other than cancel their contributions on the last leaving date.
2.Most decent employers will conduct a face to face exit meeting with the employer,which will be documented. Your friend is not obliged under law to give a reason for resigning. And if further pressed can simply advise that he wishes to explore personal options and his future. If he is a valued employee, they may offer reducing his working days.

I myself resigned in July and then drew down 25% of my company tax free and transferred the remainder into another pension provider.

[Northern Guy]

Consequences of refusing? What do the pension scheme rules say about drawing pension early? If that requires employer's consent and/or employer to put in money then possibly they could obstruct him getting the pension early. Check with pension administrators.

But if the pension he wants is his entitlement under scheme rules and employer can't prevent him drawing it then he can ignore employer's request. As far as his employment is concerned his retirement is just a resignation. Employers can't prevent him resigning as long as he gives contractual notice nor make it conditional in the way they are trying to do here.

As it's a company wide policy not something specific to your friend you may well be right that some HR person has come up with the idea to try to give them a defence to a subsequent constructive dismissal claim. But employees who are resigning do not have to comply.

I will try to find some pension info, but my suspicion is that early retirement is at their discretion. It's no free gift of course, they simply spread your pension pot more thinly for longer.

However, I cannot see how they could lawfully refuse unless you signed their disclaimer? I mean the two aren't related, and I would have thought that using early retirement consent as blackmail to sign some rights waiver only increased any claim of harm, and the likelihood the departing employee would bring it.

1. The employer has no rights, with the pension providers, other than cancel their contributions on the last leaving date.
2.Most decent employers will conduct a face to face exit meeting with the employer,which will be documented. Your friend is not obliged under law to give a reason for resigning. And if further pressed can simply advise that he wishes to explore personal options and his future. If he is a valued employee, they may offer reducing his working days.

I myself resigned in July and then drew down 25% of my company tax free and transferred the remainder into another pension provider.

I'm afraid face to face exit interviews were replaced with an online form a few years ago. Not sure whether HR inertia/laziness or just the fact so many young people change jobs faster than they change cars nowadays. No wonder us oldies, who hold the fort as they come and go, are tired and looking for an early exit.