Enterprise

Written evidence submitted by Martin Smith (ENT 09)

Redundancy cap- Enterprise Bill 2016

The following are my own personal views, I do not represent the company in any form whatsoever:

 I am an Electrical Engineer expecting to be made redundant in the next few years from the energy sector reviews (Magnox Ltd).

I am 52 this year and have effectively worked for the government my whole life (initially Civil service and made redundant in 1996).

The Bill has been "Sold" by making bold statements to reduce "Fat cats" lump sums, there are not many "Fat Cats" here this site or most other Magnox sites.

I am a father of one and husband to my wife, a listed carer. I also serve the community by way of Cub Scout volunteer assistant.

Although I will NOT get anywhere near the cash £95k lump sum limit , as the bill stands, the cap will still affect me due to my accrued pension rights, it could reduce my pension provisions by way of deficiency payments, the cap would be used up and likely leave a shortfall due to my length of service and transferred pension effectively reducing my prospective redundancy lump sum payment to zero, leaving me just statutory benefits.

I am unlikely to get another full time job due to reducing health, and my age.

 If I was getting £95,000 in my hand I would understand, you need to show to the House that the bill can affect some peoples pension, and not just the lump sums to a person.

"153A Regulations to restrict public sector exit payments

(1) Regulations may make provision to secure that the total amount of exit

payments made to a person in respect of a relevant public sector exit does not exceed £95,000.

 If Magnox could be excluded by way of pension deficiency payments, I would support the £95, 000 cap to actual cash lump sum payments received.

The cap even affects what I did 19 years ago when I transferred my Civil service pension into Magnox scheme, I have increased the effect of the cap on myself, this in itself is unfair and heads towards "pensions mis-selling". 

February 2016

 

Prepared 10th February 2016