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Consultation: proposed reform of public sector exit payments

Discussion in 'Workplace dilemmas' started by GLsghost, Feb 22, 2016.

  1. GLsghost

    GLsghost Star commenter

    For interest:

    HM Treasury is consulting on reforms to public sector exit payments.

    https://www.gov.uk/government/consu...ation-on-limiting-public-sector-exit-payments

    The proposals include:

    • Set a maximum tariff for calculating exit payments at three weeks' pay per year of service.
    • Cap the maximum number of months' salary that can be used when calculating redundancy payments up to 15 months.
    • Set a maximum salary for the calculation of exit payments.
    • Taper the amount of lump sum compensation an individual is entitled to receive as they get close to the normal pension age or target retirement age of the pension scheme to which they belong, or could belong, in that employment.
    • Reduce the cost of employer-funded pension top up payments, such as limiting the amount of employer funded top ups for early retirement, or removing access to them and/or increasing the minimum age at which an employee is able to receive an employer funded pension top up.
     
  2. marymoocow

    marymoocow Star commenter

    When is this likely to happen GL as it effects a friend who is going through a hard time at the moment? It may dictate when she takes the money and runs.
     
  3. GLsghost

    GLsghost Star commenter

    It's just in consultation at the moment, @marymoocow with the consulation closing in May.

    There is no guarantee that it will then be enshrined in law.

    If anyone has any comments to make on this proposal, I will be happy to collate them and respond to the consulation on everyone's behalf.

    The Employment Lawyers Association has also picked up on it and will be responding in due course. They have been canvassing for volunteers to assist them!

    I wonder if @TheoGriff would pin it for us?
     
  4. marymoocow

    marymoocow Star commenter

    Thanks.
     
  5. RedQuilt

    RedQuilt Star commenter

    I wonder how big the bill is for settlement payouts in the public sector and if it has risen significantly in relatively recent years. I know my former place of work was notorious amongst local solicitors who were kept very busy dealing with settlement agreements for bullied and mistreated staff.

    Is there a reason why this consultation is taking place now?
     
  6. GLsghost

    GLsghost Star commenter

    That's information that could be requested under the FOI. It would be interesting to compare employers in education.

    https://www.whatdotheyknow.com/
     
    RedQuilt likes this.
  7. GLsghost

    GLsghost Star commenter

    Government money saving, I expect.
     
    RedQuilt likes this.
  8. monicabilongame

    monicabilongame Star commenter

  9. TheoGriff

    TheoGriff Star commenter

    .

    Your wish is my command!

    ;)

    Best wishes

    .
     
    wanet and GLsghost like this.

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