"Fat cat" cap

Thrugelmir

AlanP wrote: »

So whilst it makes a good headline it probably won't make a great deal of difference in the great scheme of reduced public sector expenditure.

Money is money. A level reasonableness should be applied. As after all this is taxpayers money.

taktikback

That's where I'm at....£95k is lot of money...wouldn't matter to me if it was my wife or anyone else....it's more than enough to compensate for leaving a job....

somethingcorporate

For people that often then consult back in to the very same profession & organisation.

Thrugelmir

somethingcorporate wrote: »

For people that often then consult back in to the very same profession & organisation.

Increasingly far less likely in the Public Sector.

hyubh

taktikback wrote: »

That's where I'm at....£95k is lot of money...wouldn't matter to me if it was my wife or anyone else....it's more than enough to compensate for leaving a job....

I cited your wife's position purely as an example of one the cap might affect HR decisions about, given abstract talk of 'fat cats' is rather too nonspecific to be helpful. Further, the point is that the majority of the 95K wouldn't be a direct payment to the individual, but a payment to the pension fund. For sure that's for the sake of a generous pension, however personally I think current LGPS rules on that score are good ones. Do you not?

That said, on the long serving school bursar example, on second thoughts I wonder how the cap is intended to work with academies, or indeed, publicly funded but not public sector LGPS employers more generally (of which there are quite a number)...?

taktikback

Yes -the "opportunity for every school to gain accademy status" does pose a number of questions.

The LGPS is pretty generous (still...). One wonders whether the right to remain in it, or retain such beneficial terms will be watered down when the mass transfers (mainly from LA control) get going.

I didn't think you were having a snipe...I merely wanted to put some perspective on the table as it were. £95k is the type of money that would now only be available to relatively senior people in the private sector. (and by private sector, I mean proper self-sustaining private sector, rather than ex public sector companies like BT with their ridiculously generous legacy arrangements...)

hyubh

taktikback wrote: »

One wonders whether the right to remain in it, or retain such beneficial terms will be watered down when the mass transfers (mainly from LA control) get going.

They already have got going, and for some years. So far there hasn't been any watering down - even brand new free schools become scheduled bodies in their local LGPS fund.

£95k is the type of money that would now only be available to relatively senior people in the private sector.

Right, but that's not any different for local authorities. Were the government to change the scheme rules in order to make the cap gimmick workable I wouldn't be surprised if it actually has the opposite effect to that intended, the greater scope for negotiation driving up settlements that wouldn't currently get off the ground.

(and by private sector, I mean proper self-sustaining private sector, rather than ex public sector companies like BT with their ridiculously generous legacy arrangements...)

Only anecdotally, but from experience the big LGPS strain charges paid would be by the outsourcers who could keep the details confidential.

AlanP_2

Thrugelmir wrote: »

Money is money. A level reasonableness should be applied. As after all this is taxpayers money.

I agree to a point, but the better, and fairer, way to achieve it would be to change the calculation "rules" or contractual terms e.g. no early pension option maybe than by putting an artificial cap in place because somebody, somewhere doesn't like the answer the current (contractual) system comes up with on relatively rare occasions.

Don't know for sure but I would stake good money on the possibility that the proposed change won't affect MPs who get voted out and qualify for their early pension etc. But maybe I'm being overly cynical there.