Further written evidence submitted by Fiona Apfelstedt (ENT 45)

I write this further to my previous submission, and having read submissions of others affected by the Enterprise Bill and the proposed public sector exit payments regualtions. The contention is that these regulations include payments to pension funds which currently enable long serving members of staff to leave with a pension when they are made redundant in their 50's, but are not old enough to be able draw their pension without reduction. Would a solution to this issue be to for the regulations under this bill to be drafted to mirror the Repayment of Public Sector Exit Payments 2015. These regulations, to which I refer, have not yet come into force, but are expected to do so on 1 April 2016 and are applicable to those earning £80,000. They will require repayment by a public sector employee earning over £80,000 of any exit payment if they work within the public sector, or another part of it, during the 12 months following their exit?

The government introduced the regulations under the Enterprise Bill as a way to deal with those public sector employees that they refer to as "fat cats". From a number of the submission these proposed regulations would not only affect "fat cat" employees but also long serving employees earning under £80,000. If the regulations under this bill were drafted to apply to those earning £80,000, there would be some consistency with the repayment regulations referred to above and they would directly affect those earning over £80,000 as is purported to be the intention. However, if these regulations are being proposed to, yet again, affect the pensions of the public sector, particularly those long serving employees, then should this not be made clear, and subject to some assessment of the likely impact that these regulations will have on those that are likely to be affected.

February 2016


Prepared 18th February 2016