Recovery of public sector exit payments: Have your say

Stacks of money

23 / 12 / 2015 9.53am

We are seeking employer views to feed into the government’s consultation on draft regulations to implement the recovery of termination payments paid to public sector employees earning £80,000 or more per annum.

Under the new rules, due to take effect in April 2016, public sector employees will be required to repay a tapering proportion of a ‘qualifying exit payment’, if they return to the public sector within a period of 12 months.The regulations made under powers in the Small Business, Enterprise and Employment Act 2015 make a number of changes to the original proposals, including:

  • The minimum earnings threshold for individuals subject to the recovery provisions is to be reduced from £100,000 to £80,000 per annum.
  • The policy will apply to returning to employment in any part of the public sector, instead of only returning to the same part of the public sector.
  • The recovery amount will be reduced over time for a return at any point up to 12 months from exit.
  • Recovery will include employer funded pension ‘top up’ payments made under the Local Government Pension Scheme to align with the recovery of other similar payments.

Please email with your views specifically on the draft regulations and Schedule 1 (which lists public sector authorities and offices in scope of the regulations), and changes to the proposal for the recovery of public sector exit payments. In particular, do these regulations achieve the policy intention of ensuring the mechanism for the recovery of exit payments is fair, proportionate and represents value for money to the tax payer? 

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