Exit payments cap set for this year

摘要

The Government plans to bring its proposed £95,000 cap on public servants' exit payments into force before the end of this calendar year, The MJ understands. Its move comes despite warnings that capping exit payments will undermine the incentive for large numbers of employees to leave and result in long-serving middle earners receiving reduced pensions on redundancy. A report to the local government pension scheme advisory board read: 'As the cap includes pension strain costs the restriction will seriously limit councils' ability to restructure management levels by consent, thereby impacting on the business case for such restructures.