HM Treasury has issued guidance on the directions. Their expectation is that employers should pay the additional sums that would have been paid had the cap not been applied for employees who left between 4 November 2020 and 12 February 2021. You can find out more information on the exit cap on the LGPS website for employers. We’re currently seeking further guidance and will update you as soon as we can.
The Government remains committed to tackling unjustified exit payments and will bring forward proposals to do this shortly. It is likely that the exit cap could be introduced again later this year.