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The Local Government (Early Termination of Employment) (Discretionary Compensation)(England and Wales) Regulations 2000

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Reduction of annual compensation

17.—(1) Where a person to whom a credited period has been awarded enters a new employment, the employing authority must reduce his annual compensation by such amount (if any) as they consider appropriate.

(2) In deciding what is appropriate, the employing authority must secure that the person is not able to obtain for himself a total annual amount comprising—

(a)the annual rate of pay from his new employment, and

(b)financial benefits under these Regulations and the Pension Regulations,

greater than the annual rate of pay to which he would have been entitled had he remained in his terminated employment.

(3) If that position cannot be secured by reduction of his annual compensation, his entitlement to that compensation shall be suspended.

(4) The reduction or suspension referred to in paragraph (3) shall apply for so long as the person concerned holds the new employment.

(5) For the purposes of this regulation, the reference to the “annual rate” of pay of the terminated employment is a reference to the annual rate of such pay with official increases.

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