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Due to the effect the Exit Cap Regulations will have on a large number of our employers, we have taken the decision to stop all employers from producing redundancy, efficiency and employer consent estimates in Employer Self Service until such time as the LGPS regulations are altered and the software updated. 

Our in house Technical and Training team will produce the estimates on your behalf. Please complete the LGPS Estimate Request Form providing details of estimated compensation package so that you will be able to see if, together with the pension strain cost, a member is likely to be over the £95k cap and their accompanying options. 

As we move through this interim period we would ask that you inform the Employer and Communication team if: 

  1. you are planning any redundancy exercises with a leaving date before or on 31st March 2021 
  1. you have any cases where redundancy notice was given prior to 4th November 2020 and the compensation package including pension strain costs, is expected to be over £95k. 

Information for employers regarding the Exit Cap 

The Local Government Association (LGA) have published guidance which sets out a process for employers to follow from 4th November 2020 for redundancy and efficiency exits, where the employee is a member of the Local Government Pension Scheme and aged 55 or over.

LGA Employer Exit Cap guidance 

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