Tuesday 20 October 2020

Latest News

15 October 2020

Exit Pay Cap Update

The legislation to implement the £95k cap on exit payments in the public sector has completed the Parliamentary process and was signed into law last night meaning the regulations, and therefore the cap, come into force on 4 November 2020.  

As yet neither the Guidance nor Directions to accompany the regulations have been published.  This means there is no further information regarding the waiver process or provision for current exits in progress.

MHCLG's consultation on changes to the Local Government Pension Scheme rules required to accommodate the £95k cap is ongoing and will not conclude before the cap comes into effect. 

With colleagues at the LGA, we are raising our concerns about the implementation of this legislation, including the treatment of exits currently in process, with MHCLG and HM Treasury.

We will provide you with any further updates when more information is known.

 

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