[Public Service Annoucement] Changes to the Retirement ActNovember 25, 2011 at 11:23 am | Posted in But Seriously | Leave a comment
Disclaimer: As a PSA, I thought I’d share what I understand about the changes to the Retirement Act. This is my understanding, go read the Act yourself.
The new Retirement and Re-employment Act will come into effect on 1 Jan 2012, amending the old Retirement Act.
- If you turn 62 before 1 Jan 2012, then the re-employment rules will not be applicable to you (laws are not usually retroactively applied/ it has got to do with how good laws do not apply backwards or something like that/ I hated jurisprudence so go ask someone else)
- Current specified age is 62, can change
Presumption: you are medically fit for re-employment and your work is satisfactory, employer will have to prove that you are not capable of re-employment
So what are the changes?
- Employer is obliged to re-employ you after you hit 62 (specified age) until you turn 65 (but this upper limit can changed by Manpower Minister)
- Employer is deemed to comply if they let you keep working without a new contract of service
- However, the employer can also enter a new contract of service, to vary the terms of the previous contract. Variations based on several factors including, your productivity, performance, duties, responsibilities and wage.
- Also, if you enter the new contract, the previous contract is disregarded
- If employer cannot reasonably re-employ you, then they have to give you employment assistance payments (EAP) to help you until you can find employment with another employer.
- However, if you tell your employer you that you want to retire at 62, then he has no obligation to give you EAP
What does this all mean?
- You’ll be working until 65 if you choose, otherwise you can enjoy retirement at 62
- Your employer has to show that you “cannot make it” if they don’t want to re-employ you at 62
- If your employer really cannot keep you on (downsizing, job too demanding for a 62 year old, etc) then they have to give you EAP, but you have to look for a new job (I don’t know how EAP will be calculated).