The government has decided to revoke the Restriction of Public Sector Exit Payments Regulations 2020 after concluding that the £95,000 cap may have had unintended consequences.
On 25 February the Restriction of Public Sector Exit Payments (Revocation) Regulations 2021 (the Revocation Regulations) were laid before Parliament. They will come into force on 19 March 2021 and revoke the Regulations from that date.
The Revocation Regulations provide that anyone who received an exit payment from a relevant public sector body between 4 November 2020 and 19 March 2021 which was capped as a result of the Restriction of Public Sector Exit Payments Regulations will be entitled to receive an additional payment from that public sector body. The additional payment will be the difference between the amount of the payment made and the amount that would have been payable had the Regulations not applied. That additional payment can be paid to the person concerned, or on their behalf to a pension scheme or to another person (or to more than one of these parties).
