Retirement

Topics: Pension, Retirement, Life annuity Pages: 13 (3093 words) Published: March 29, 2009
UNITED STATES INTERNATIONAL UNIVERSITY

EMOD 6010

ORGANIZATIONAL BEHAVIOUR

TERM PAPER

How THE African Union Prepares Employees for Retirement

BY: MOGOMOTSI DINGALO

STUDENT NUMBER: 626027

How the African Union Prepares Employees for Retirement
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Introduction

Upon retirement an ex employee may face uncertainty, depression, and other challenges such as insufficient income to pay debt owed, unpaid children’s school fees and bills and so on. The African Union Commission recently introduced workshop for employees due to retire in order to prepare them for life after retirement. The workshop covered a variety of topics which will be discussed in this document.

Counseling

Staff due for retirement is counseled to prepare them not to fall apart when they retire. Particular emphasis is on staff to take retirement positively and not as a nightmare.

Planning for Retirement

Planning for retirement should usually begin the moment one starts to work, but due to multiple responsibilities, failure to begin in time is wide spread.

Retirement Meaning to Staff

What does retirement mean to retiring staff? It means transition from one phase of life to another. It can be positive or negative. It does not mean decay. Why do we put age as a deterrent in retirement? The assumption for many is that retirement leads to end of life. It is not true. Many people live longer even after retirement. People should start preparing for retirement the moment they take up a job. Our life after retirement cannot be transferred to our children as this will delay them from planning for their retirement in time.

Preparation for retirement

Preparation for retirement should begin three years in advance. Staff should be used to pass knowledge to incoming ones. People should gain something from retirement. If people retire unfulfilled, they tend to die earlier. Retirement plan should begin three years before. The AU should keep supporting staff when they retire, staff should not be cut off from the organization. The health insurance of staff should not be terminated automatically as staff leaves the Organization. The pension fund should be implemented early.

Challenges to preparing for retirement

The following were noted by the AU as impediment or challenges to proper planning for retirement:

o Lack of right mechanism, e.g. Poor pension schemes;
o Late start of employment
o Social life systems
o Inadequate salaries/ benefits;
o Lack of awareness

AU pension Scheme

AU has a pension scheme with a company called ALICO.AU contributes 15% of basic salary and the staff contributes 7%. This ensures that AU regular staff at least have a fall back position upon retirement.

Staff Entitlement upon Retiring

Upon retirement the AU pays for personal effects and one way airtickets for the Staff and his family as detailed below.

• 4000 kg in 20 feet container plus US$1,500 for insurance. • Return Air Ticket for self and family
• Excess luggage: 10 Kg per person accompanied, 50 kg per person unaccompanied (by air). • Accumulated leave days, not exceeding (110) days
• Staff is paid salary up to the end of the month in which he/she is retiring, even if he/she retires in the first week of the month. • The education allowance will continue till the end of school year of the child of a retiree. • Staff gets their entitlements three months before they leave.

AU ten top retirement priorities:

Health
Spending more time with families;
Deciding where to settle down;
Deciding how to rest and relax;
Deciding more meaningful and satisfying work;
Traveling;
Deciding on new hobbies;
Volunteering
Continuing with education;
Starting a new business career;
Pick up tennis. Pick up swimming.

Advice about handling Oneself after retirement

The AU, as part of preparing employees for retirement has the following suggestions:

o The...
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