MHCLG consultation on reforming local government exit pay

We recently told you that the Ministry of Housing, Communities and Local Government (MHCLG) published a consultation on restricting exit payments in local government in England and Wales. This closed on 9 November 2020. This consultation goes further with exit payment reform than the £95k cap and draft regulations have been published as part of the consultation. You can read more about this on our news page. 

The Local Government Association (LGA) responded to the consultation before it closed. You can read their response on the LGPS website.

On 14 October 2020, MHCLG published draft regulations to accompany the policy consultation: The Local Government Pension Scheme (Restriction of Exit Payments) (Early Termination of Employment) (Discretionary Compensation and Exit Payments) (England and Wales) Regulations 2020. These draft regulations are being introduced to allow for changes to the LGPS regulations and compensation regulations to take into account the exit payment cap and introduce wider exit payment reforms.

MHCLG has asked for comments on the draft regulations. You can send your responses to LGExitPay@communities.gov.uk by 18 December 2020. The Scheme Advisory Board (SAB) will share its comments on the draft regulations before this deadline.

You can read the LGA response, draft regulations and other consultation documents on the scheme consultations page of www.lgpsregs.org. Be sure to also take a look at the LGA's information document for employers.