Superannuation Act 2010

Superannuation Act 2010
Dates
Parliament of the United Kingdom
Long title	An Act to make provision for and in connection with limiting the value of the benefits which may be provided under so much of any scheme under section 1 of the Superannuation Act 1972 as provides by virtue of section 2(2) of that Act for benefits to be provided by way of compensation to or in respect of persons who suffer loss of office or employment; and to make provision about the procedure for modifying such a scheme.
Citation	2010 c. 37
Introduced by	Francis Maude/Lord Wallace of Saltaire
Royal Assent	16 December 2010
Commencement	Sections 1, 2 and 4 on 16 December 2010; Section 2 on 16 February 2011
Status: Current legislation
History of passage through Parliament
Text of statute as originally enacted
Text of the Superannuation Act 2010 as in force today (including any amendments) within the United Kingdom, from the UK Statute Law Database

The Superannuation Act 2010 (c. 37) is an Act of the Parliament of the United Kingdom. It caps the redundancy payouts to civil servants at 15 months' salary. Initially the proposal was for a maximum of 12 months' salary. This was raised during the passage of the Bill to 15 months in the case of voluntary redundancy.

It was introduced in the House of Commons on 15 July 2010, and received its third reading there on 13 October. The Act was given Royal Assent on 16 December 2010 and passed into law. There had been considerable political controversy surrounding the Act and its provisions and it was considerably amended during its passage through parliament.

Under the previous Civil Service Compensation Scheme (CSCS), civil servants received, on average, redundancy pay-offs equivalent to three years' pay, with some senior civil servants eligible for severance packages worth six years' salary. Cabinet Office minister Francis Maude described this as completely "untenable" and "massively out of kilter with the public sector", and said that the Act's effort to cap these redundancy payments was "an inevitable consequence of current economic circumstances".^[1] Mark Serwotka, general secretary for the Public and Commercial Services Union, said that "the government wants to lay waste to our members' jobs and livelihoods more cheaply."^[2] Legal challenge in Europe was also threatened.

The dispute over redundancy payments is long-standing, and under previous rules, in order to change the CSCS an agreement was needed with all six civil service unions.^[3] The Superannuation Act 2010 amended the Superannuation Act 1972, in order to limit redundancy payouts and to end the absolute requirement for an agreement with trade unions in relation to redundancy payments.

The Act was hardly in place before the maximum figure for redundancy payouts was repealed and higher levels announced.

In a written statement on 21 December 2010, Francis Maude advised parliament that we "are now in a position to be able to repeal the caps set out in the Act through the Superannuation Act 2010 (Repeal of Limits on Compensation) Order 2010, which comes into force today. The repeal means that the statutory caps of a maximum of 15 months' pay for voluntary departures and 12 months' pay for compulsory departures, will not apply to the new civil service compensation scheme that is starting on 22 December 2010."

The key elements of the final compensation scheme for voluntary redundancy, if below normal pension age (either aged 60 or 65), were for one month's pay per year of service up to 21 months (previously 15 months) with a taper of between a maximum of 21 months' and six months' compensation for those approaching pension age, and for those at or above normal pension age, one month's pay per year of service up to a maximum of six months.

References

↑ "Civil servant redundancy payouts to be capped". BBC News Online. 6 July 2010.
↑ "Civil servants' redundancy offer revised". BBC News Online. 11 October 2010.
↑ "Legislation to cap civil service payouts introduced". BBC News Online. 15 July 2010.

United Kingdom legislation

Pre-Parliamentary legislation	List of English statutes Charter of Liberties Magna Carta

Acts of Parliament by states preceding the Kingdom of Great Britain	Acts of the Parliament of England to 1483 1485–1601 1603–1641 Interregnum (1642–1660) 1660–1699 1700–1706 Acts of the Parliament of Scotland Acts of the Parliament of Ireland to 1700 1701–1800

Acts of Parliament of the Kingdom of Great Britain	1707–1719 1720–1739 1740–1759 1760–1779 1780–1800

Acts of Parliament of the United Kingdom of Great Britain and Ireland and the United Kingdom of Great Britain and Northern Ireland	1801–1819 1820–1839 1840–1859 1860–1879 1880–1899 1900–1919 1920–1939 1940–1959 1960–1979 1980–1999 2000 to date Halsbury's Statutes UK Statute Law Database Short titles

Church of England measures	List Church of England Assembly (Powers) Act 1919

Legislation of devolved institutions	Acts of the Scottish Parliament Acts and Measures of the National Assembly for Wales Acts of the Northern Ireland Assembly Acts of the Parliament of Northern Ireland Orders in Council for Northern Ireland

Orders-in-Council	Order in Council

Secondary legislation	United Kingdom Statutory Instruments Scottish Statutory Instruments Act of Sederunt, Act of Adjournal

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Superannuation Act 2010

See also

References