For
those of you who attended our employer meetings last week, you will be aware
that some proposals have been put forward on how the Exit Payment Cap could
affect your employees.
We
can now confirm that a statutory instrument
has been made in Parliament which brought s41 of the Enterprise Act
2016 into force on 1st February 2017. Section 41 allows the Secretary of
State to issue regulations capping public sector exit payments (which include
pay in lieu or notice, redundancy and ex gratia payments) to £95,000.
Don’t panic! As anticipated, the commencement order will not bring into
force the specific amendments to the LGPS regulations contained in the Enterprise
Act 2016. This is because as currently drafted, the amendments contain
a number of areas requiring revision.
The commencement order itself is only bringing into
being the regulation-making powers, but not the legislation actually required
to operate the cap. So, for now the exit cap lies dormant. This
issue hasn’t gone away though and we expect more consultation and plenty more
debate before it’s finally settled.
We will obviously keep you posted as things develop.
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