Bedfordshire Pension Fund Website

You are here: Home Page > Active Members > Thinking about retirement?

Redundancy or Efficiency

If you are aged 55 or over, your benefits are payable immediately without any early retirement reductions if your employer makes you redundant or you are retired on the grounds of business efficiency.

Bedfordshire Pension Fund does not accept requests for redundancy or efficiency estimates from individual members.  The request for an estimate of benefits must be made through the employer's Human Resources department.

 

Proposed Cap on Public Sector Exit Payments

Earlier this year, Bedfordshire Pension Fund responded to a consultation on a Public Sector Exit Payment Cap.  In essence, Central Government is considering introducing a cap on the value of payments that can be made as a result of an employment ending on redundancy grounds. You can view the response from Bedfordshire Pension Fund here.  Included in the cap may be the redundancy payment, pay in lieu of notice and the cost to the employer of releasing the pension benefits (called actuarial strain or capital cost).

We are still awaiting a response/draft legislation, and are unsure exactly how this will impact on any exit payments and what the effective date will be.  

You can follow progress on this bill at http://services.parliament.uk/bills/2015-16/enterprise.html

The Fund Administrator and Chief Executive for Bedford Borough Council are aware of the potential issue regarding employees who may leave on early retirement/redundancy grounds and are considering the matter, and discussing the matter with colleagues at other national groups.

We appreciate the difficulty trying to manage budgets and redundancies over this period of uncertainty.  More information will be provided here when available.