Under the Local Authority Members (Gratuity) Regulations 2002, as amended by the Local Authority Members (Gratuity) (Amendment) Regulations 2006, a former local authority member is entitled to a retirement gratuity of 4/20ths of the Representational Payment for each year of service, up to a maximum of 20 years' service.
The Financial Emergency Measures in the Public Interest Act 2009 states that any public servant who is a member of a public service pension scheme, is entitled to a benefit under such a scheme, or receives a payment in lieu of membership of such a scheme, is subject to a deduction from their remuneration. Additional pension benefits do not arise as a result of this deduction.
The payment of the retirement gratuity to local authority members is a payment in lieu of membership of a pension scheme and, as such, local authority members are subject to the deduction outlined in the Financial Emergency Measures in the Public Interest Act 2009.