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Greg Hands - HM Treasury

On 25 November 2015 the government announced in the Spending Review that it would consult on cross-public sector action on exit payment terms, to reduce the costs of redundancy pay-outs and ensure greater consistency between workforces.

Today I have launched this consultation. The consultation document invites views on the range of options the government is looking at, including:

  1. Setting a maximum tariff to calculate exit payments at three weeks pay per year of service

  2. Capping the maximum number of months salary that can be used to calculate redundancy payments to 15 months

  3. Reducing the cost of employer-funded pension top-ups to early retirement as part of redundancy packages

  4. Introducing a tapering element the closer individuals get to their retirement age

  5. Introducing a salary cap on which exit calculations can be based

The consultation is available at: Consultation on reforms to public sector exit payments


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