HM Treasury has announced that the £95,000 cap on exit payments, introduced from 4 November 2020 and applicable to employees of public sector authorities, is revoked with immediate effect. The cap could have applied to members of the Teachers’ Pension Scheme, working in an academy or local authority maintained school, where the employer was considering offering Premature Retirement compensation and the cost of that compensation, alongside other exit-related payments, would have exceeded £95,000.

The updated guidance states that HM Treasury is considering new proposals (This link opens in a new window)

Further information will be provided as necessary.