LTB 521/16 – Medical Retirement, Retirement in the Interests of Efficiency (RITIE) and Settlement Agreements

No. 521/2016 Ref: DJ/DGN 8th September 2016

TO ALL BRANCHES WITH MEMBERS EMPLOYED BY BT PLC

Dear Colleague,

Medical Retirement, Retirement in the Interests of Efficiency (RITIE) and Settlement Agreements

The Personnel team has had a number of enquiries regarding Medical Retirement, Retirement in the Interests of Efficiency (RITIE) and Settlement Agreements and the application of these policies. This LTB is intended to add awareness for Branches dealing with members who may be entitled to Medical Retirement or RITIE (which applies to those members of the BT Pension Scheme Section (B) (http://www.btpensions.net/) and may be faced with leaving the company through ill health where a settlement agreement may not be the best or right option.

Reference to RITIE does not appear to be accessible on the BT Intranet and this option appears to be something some members or managers are not fully aware of. The Personnel team has met the company on clarity around RITIE and its lack of visibility in any process documents. Branches will be updated on any progress made regarding this matter.

You will find attached the Medical Retirement procedure, Section B BT Pension Scheme Deed including Section 5.3 which refers to Retirement In The Interests of Efficiency and LTB 1028/2011which although refers to compromise agreements’ instead of Settlement Agreements’ never the less remains an agreed process. The extract is copied below;

Use of Compromise (Settlement) Agreements in PM/Absence Management cases

Compromise agreements are widely used throughout industry. They are not part of our standard process and should not be regarded as an alternative to dismissal. Compromise agreements are entirely at the company’s discretion and on a case by case basis. The use of compromise agreements will continue where an individual and the company agree that such an arrangement is mutually acceptable. We have, however, listened to the concerns raised by CWU and we have agreed to the following:

all compromise requests from team members will receive appropriate senior ER management sign off;

  • any individual who wishes to consider the option of a compromise agreement will be given appropriate time to evaluate their options before deciding to proceed with any such agreement. We have agreed that we will increase the time for team members to consider a compromise agreement as a result of performance issues or absence to 10 days from the current period of 3 days;

  • team members will be formally advised of the right to consult with their Union. We will reinforce this to our management teams to ensure this advice is provided to individuals at the 1:1 where the option is raised;
  • there will be no proactive communication of compromise agreements although all options open to the individual should be explained within the confines of the confidential 1:1 performance or absence discussions between managers and their people.

Theimportance of this agreed process is that it gives time for members to take advice from the CWU and to reflect on whether Medical Retirement or RITIE may be a further option to consider. The LTB also has further information on various issues which Branches may also find helpful.

Any enquires regarding this LTB should be referred to my office in the first instance.

Yours sincerely,

DAVE JUKES
Assistant Secretary