NHS Treasury September 2016
- The government has published a response to the consultation about reforms to public sector exit payments. Following this consultation the government intends to take forward the proposals set out in its consultation.
- These proposals are summarised in the report and include:
- a maximum tariff for calculating exit payments of three weeks’ pay per year of service. Employers could apply tariff rates below these limits
- a ceiling of 15 months on the maximum number of months’ salary that can be paid
- a maximum salary on which an exit payment can be based. As a starting point the government will expect this to align with the existing NHS scheme salary limit of £80,000
- a taper on the amount of lump sum compensation an individual is entitled to receive as they get closer to their normal pension age.
