The Government has confirmed that the public sector exit cap will not apply to exits from 12 February 2021.
The exit cap applied to employees leaving public sector employments from 4 November 2020 - it limited the amount of money a public sector employer could pay when an employee left their employment to £95,000.
Guidance issued by the Government states any employees who left employment between 4 November 2020 and 11 February 2021, who are directly affected by the cap should contact their previous employer. The Government expects employers to now pay any additional sums that would have been paid, if the cap had not applied. The additional sums could be payable to you as an employee or to your pension fund to pay towards to the cost of you receiving your pension early. Check with your employer if you think this applies to you.
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.