Posted by Chris A Brown at 07/12/2020 16:19:04
The Government has introduced a cap on the amount of money a public sector employer can pay when an employee leaves their employment. It is called the public sector exit cap, or £95k cap. It applies to employees leaving public sector employments from 4 November 2020.
This may affect some members of the LGPS who retire on grounds of redundancy or business efficiency over the age of 55. Where the LGPS regulations allow for unreduced benefits to be paid to members in these events, this is now subject to this exit cap.
Employers have to pay strain costs to the scheme to allow for unreduced benefits, and this payment will be included when calculating the £95k cap.
If you are a member of the scheme and would like more information on this, please visit the following link:
Public Sector Exit Cap - Member FAQs (external website)