Department for Communities
and Local Government
Lynda Jones
Head of Local Government
and
Firefighters’ Pensions Schemes 3
Zone 2/F6
Ashdown House
To: Addressees as
attached below Direct Line: 020 – 7944 - 4317
Fax :
020 -7944 – 6019
e-mail:
Lynda.jones@odpm.gsi.gov.uk
Web Site: www.xoq83.dial.pipex.com
8 May 2006
The Local Government (Early Termination of Employment) (Discretionary
Compensation) (
With Ministers' agreement I enclose, for your
comments, draft regulations to replace the Local Government (Early Termination
of Employment) (Discretionary Compensation) (
This consultation exercise takes place within
the context of broader policy and regulatory changes for the Local Government
Pensions Scheme designed to lead to the introduction of a new look scheme in
April 2008. If consultees
wish to discuss in detail the proposals and their implications or to suggest
positive amendments, please do not hesitate to contact us so that the issues
can be fully discussed within the consultation period.
The new regulations set out to ensure that
the discretionary powers to award compensation to local authority staff whose
employment is terminated early will meet the requirements of the European
Employment Directive. The regulations are intended to come into force on
The new regulations, as currently proposed,
will have the effect of providing local government employers with discretionary
powers to award employees a one-off lump sum of up to two years pay where
employment is terminated early. Illustrative examples of the potential maximum
compensation amounts are provided in the Regulatory Impact Assessment (paragraph
17). The new regulations do not provide for the award of a credited period
(commonly referred to as “added years”). However, it should be noted that the
discretionary provision to award additional membership as set out in the Local Government
Pension Scheme Regulations 1997 will still be available to employers. It should
be noted that it is not proposed to retain the award of a lump sum payment and
additional membership of the LGPS in respect of the cessation, as is the case
under the current provisions.
Statutory Instrument Contents
Regulation I: Citation and commencement
Under this regulation the provisions will come into force on 1 October.
Regulations 2: General interpretation
This
regulation gives definitions of various expressions used in the Regulations.
Regulation 4: General and special applications of Regulations
This Regulation sets out the classes of employees and the grounds of
termination of employment which will apply. The grounds that apply are where employment
is terminated by reason of redundancy, in the interests of the efficient
exercise of the authority’s functions and in the case of a joint appointment
where the other holder of the appointment has left it.
Regulation 5: Power to increase statutory redundancy payments
By virtue of this Regulation employers have the discretion to remove the weekly pay ceiling placed on the payment of a redundancy payment under the Employment Rights Act 1996.
Regulation 6: Discretionary compensation for redundancy
This Regulation provides employers with the discretionary power to compensate staff whose employment is terminated early. Such payments must not exceed two years’ pay.
Regulation 7: Policy Statements
Each authority will be required to formulate, publish and keep under review their policies on compensation. In formulating and reviewing their policies, authorities must have regard to the extent to which the exercise of their discretionary powers, unless properly limited, could lead to a serious loss of confidence in the public service and ensure that they are workable, affordable and reasonable, having regard to costs.
Regulation 8: Payments and repayments
This Regulation concerns incorrect payments.
Regulations 9 – 12
These Regulations prevent the cost of payments being charged to a pension fund, and
deal with the effect of the Regulations on ongoing cases and the position with regard to the effect of the new regulations on other regulatory provisions.
Responses
Your comments should be sent in the first instance to Philip Perry, Local Government and Firefighters' Pensions Schemes Division, Department for Communities and Local Government, Zone 2/F6, Ashdown House, 123 Victoria Street, London, SW1E 6DE.
Electronic responses can be sent to philip.perry@odpm.gsi.gov.uk .
A summary of responses to this consultation will be published within 3 months of the close of consultation at www.xoq83.dial.pipex.com
This consultation follows the Government code of practice on consultations, which is attached at Annex A.
Information provided in response to this
consultation, including personal information, may be published or disclosed in
accordance with the access to information regimes (these are primarily the
Freedom of Information Act 2000 (FOIA), the Data Protection Act 1998 (DPA) and
the Environmental Information Regulations 2004).
If you want the information that you provide
to be treated as confidential, please be aware that, under the FOIA, there is a
statutory Code of Practice with which public authorities must comply and which
deals, amongst other things, with obligations of confidence. In view of this it
would be helpful if you could explain to us why you regard the information you
have provided as confidential. If we receive a request for disclosure of the
information we will take full account of your explanation, but we cannot give
an assurance that confidentiality can be maintained in all circumstances. An
automatic confidentiality disclaimer generated by your IT system will not, of
itself, be regarded as binding on the Department.
The Department will process your personal data in accordance with the DPA and in the majority of circumstances; this will mean that your personal data will not be disclosed to third parties.
Yours sincerely,
Lynda
Jones
The consultation criteria Annex A
The Government has adopted a code of practice
on consultations. The criteria below apply to all
Though they have no legal force, and cannot
prevail over statutory or other mandatory external requirements (e.g. under
European Community Law), they should otherwise generally be regarded as binding
on
1. Consult widely throughout
the process, allowing a minimum of 12 weeks for written consultation at least
once during the development of the policy.
2. Be clear about what your
proposals are, who may be affected, what questions are being asked and the
timescale for responses.
3. Ensure that your
consultation is clear, concise and widely accessible.
4. Give feedback regarding
the responses received and how the consultation process influenced the policy.
5. Monitor your department’s
effectiveness at consultation, including through the use of a designated
consultation co-ordinator.
6. Ensure your consultation
follows better regulation best practice, including carrying out a Regulatory
Impact Assessment if appropriate.
The full consultation code may be viewed at
www.cabinet-office.gov.uk/regulation/Consultation/Introduction.htm
Are
you satisfied that this consultation has followed these criteria? If not, or
you have any other observations about ways of improving the consultation
process please contact
Adam
Bond, Department for Communities and Local Government Consultation
Co-ordinator, Room 2.19, 26 Whitehall, London, SW1A 2WH;
or by
e-mail to:
Consultation addressed to:
The Chief Executive of:
County
Councils (
District
Councils (
Metropolitan
Borough Councils (
Unitary
Councils (
County
and County Borough Councils in
Tameside
Metropolitan Borough Council
Wirral
Metropolitan Borough Council
Environment
Agency
Town Clerk, City of London Corporation
Clerk,
Clerk,
Fire and Rescue Authorities in
Police Authorities in
Audit Commission
National Probation Service for
New Towns Pension Fund
Local Government Association (LGA)
Employers' Organisation
LGPC
ALACE
SOCPO
SOLACE
CIPFA
ALAMA
Association of Colleges
Association of Consulting Actuaries
Association of District Treasurers
Society of
Society of Welsh Treasurers
Society of Metropolitan Treasurers
Society of
Society of Chief Personnel Officers
Association of Educational Psychologists
NALC
Society of Local Council Clerks
Trades Union Congress UCATT
UNISON GMB
NAEIAC
AMICUS TGWU