Draft regulations have been issued for consultation (to 31 October 2008) which will make provision, from 1 April 2009, for a third tier ill-health lump sum compensation payment, payable at the discretion of the employer in circumstances where a scheme member has ceased to be employed on capability grounds but is not deemed to be permanently incapable of carrying out efficiently the duties of that employment
The regulations will also increase the maximum lump sum compensation payment which may be awarded in cases of redundancy or efficiency from 66 weeks to 104 weeks’ pay.
To view the regulations, click here.
To view our response to the draft regulations, click on response to discretionary ill health.