If we agree to reduced hours for ‘pensionable’ staff, can they receive pension and part wages i.e. is partial retirement lawful?

Firstly, it is necessary for the employer and pension trustees to review the pension rules to ensure such an arrangement is permitted. From a pension perspective, while there is no legal restriction from such an arrangement, it would be a matter of consulting the pension scheme rules to ensure that this is not prohibited under the scheme.

From an employment perspective, ‘partial retirement’ would be a matter of agreement between an employee and employer. Caution should be exercised so that an employee is not treated differently because of their age, as this could expose the employer to discrimination claims. Any changes to the terms and conditions of an employee’s contract of