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Restrictions on exit payment – Interim Policy

DEC 2020 – 95k Policy

This briefing note sets out the Cheshire Pension Fund’s interim approach to dealing with a regulatory conflict caused by a timing difference between the introduction of the Restriction of Public Sector Exit Payment Regulations and the necessary changes to the Local Government Pension Scheme Regulations.

More information can be found on the LGPS scheme advisory board pages https://lgpsboard.org/index.php/structure-reform/public-sector-exit-payments

The Local Government Association have also published an information note for employers on the exit cap. The document is available on the employer guides and documents page of www.lgpsregs.org

On a practical note can we advise colleagues that we have a backlog of early retirement estimates and ask you for patience as we work through these estimates. We will try and process all estimates as quickly as we can.

Also for new estimates, please could you try to ensure that you provide pay details that are as accurate as possible, to avoid scenarios where the initial estimate falls under the £95k cap, but when the final pay figures come through at retirement they breach the £95k cap.