6.—(1) Compensation payable in respect of a person by a local government body under these regulations shall not exceed either of the following amounts—
(a)the amount by which the enhanced redundancy payment exceeds 104 week' pay (as calculated for the purposes of the 1996 Order in accordance with Chapter [F1“IV] of Part 1 of that Order).
(b)the amount the enhanced redundancy package costs exceeds the eligible person's annual salary cost multiplied by 3.25.
(2) For the purpose of this regulation enhanced redundancy package costs are:
(a)the enhanced redundancy payment;
(b)where the person is a member of a recognised pension scheme, the cost of bringing the pension into payment early without an actuarial reduction if applicable; and
(c)the cost of any additional pension, where awarded by the local government body.
(3) For the purpose of this regulation a person's annual salary costs to the local government body, on the material date, are:
(a)the person's gross annual salary;
(b)the annual national insurance contribution payable by the local government body in respect of the person; and
(c)where the person is a member of a recognised pension scheme, the annual pension contribution payable by the local government body.
Textual Amendments