Local government bodies celebrate revocation of exit payment cap regulations

Publish date: 22/03/2021

LLG and ALACE have welcomed the revocation of the Restriction of Public Sector Exit Payments Regulations 2020 on 19 March. This is a direct outcome of their judicial review claim seeking to have the regulations quashed. Other judicial review claims had been launched by a range of other bodies, including the main local government unions, however LLG and ALECE will be withdrawing the claim following the success of explicit provisions which require additional payments with interest.

LLG and ALACE were deeply concerned that the 2020 Regulations were rushed and ill thought through, made without proper consideration of the detrimental impact on local government staff. Indeed, at the time of implementation the associated changes to the local government pension scheme were still the subject of consultation. Of great concern was the retrospective effect of the regulations, removing the hard earned right to receive an unreduced pension if made redundant over the age of 55.

LLG and ALACE have now confirmed that they will be withdrawing their judicial review claim as the revocation of the 2020 Regulations has achieved their main aims. This includes explicit provision requiring employers to make additional payments, with interest, to put individuals into the position that they would have enjoyed if the 2020 Regulations had not been in force.

Quentin Baker, President of LLG said "I'm very pleased to see that this issue has been resolved and the pension benefits of our hard-working members have been restored".

Ian Miller, Honorary Secretary of ALACE, said "The Treasury needs to learn from its humiliating U-turn and work with our organisations and the main local government unions before it publishes revised proposals. We will remain vigilant. If necessary, we stand ready to bring forward a fresh challenge if the Treasury seeks to include pension strain within a revised exit cap, when it is a long-standing and justified element of the pension scheme."


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