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<p>The government was clear during the passage of the primary legislation that the
cap will have no impact on the majority of public sector workers. We do however accept
that there will be some circumstances where it is necessary or desirable to relax
the cap. As such, a waiver system is in place for use in exceptional situations, including
where imposing the cap would cause genuine hardship.</p><p> </p><p>An impact assessment
was conducted and published in the 2016 consultation ahead of the primary legislation.
This impact assessment took the inclusion of pension strain into account and can be
found <a href="https://www.gov.uk/government/consultations/consultation-on-a-public-sector-exit-payment-cap/consultation-on-a-public-sector-exit-payment-cap#impact-analysis"
target="_blank">here</a>. A further equalities assessment will be conducted on the
final version of the regulations. The government is currently considering responses
to the consultation on the draft regulations to implement the public sector exit payment
cap and will respond to the consultation in due course.</p><p> </p><p>The government
believes it is right to include all payments related to exit within the cap. The cap
does not affect any pension that a person has earned through their years of service
or have any impact on accrued pension rights. The cap ensures additional contribution
to that pension made by the employer to fund early access to a pension is limited
to no more than £95,000, on account these costs are ultimately funded by the taxpayer.</p>
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