£95k exit payment cap legislation will become law on 4 November 2020
The £95k cap legislation has gone through the House of Commons meaning this legislation will become law on 4 November 2020, before the LGPS regulations are changed. The exit cap legislation is called the ‘Restriction of Public Sector Exit Payment Regulations 2020’.
The 95k cap means public sector staff (working for affected employers) who are exiting on grounds such as redundancy or efficiency will be subject to a £95k cap on exit payments. The public sector employers affected by the cap are those that are listed in the Schedule of the new regulations. For LGPS employers this includes council workers, police and fire civilians, academies, but not Further Education and Higher Education colleges, or admission bodies.
Don’t forget – further reform still proposed!
In Previous news post we told you that the Ministry of Housing, Communities and Local Government (MHCLG) have published a consultation on further reform of exit payments in local government in England and Wales. Visit the Gov.uk website to read more information on the proposed reforms.
The consultation closes on 9 November 2020.
The pensions team have stopped providing quotes for early termination (redundancy, efficiency & mutual termination on business efficiency) cases because of these changes. If you know you've cases in the pipeline that will now be affected by this then please contact us.