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Publication - Advice and guidance

Scottish Public Finance Manual

Last updated
31 March 2025 - see all updates
Directorate
Financial Management Directorate
Topic
Money and tax, Public sector

The Scottish Public Finance Manual (SPFM) is issued by the Scottish Ministers to provide guidance on the proper handling and reporting of public funds.

Supporting documents

Annex C: Elements to be included/excluded from £95,000 compensation cap

Annex C: Elements to be included/excluded from £95,000 compensation cap

Included

Not Included

Any non-contractual sum agreed as part of the compensation

Pension benefits to which the employee is already entitled

Pay in Lieu of Notice

Mandatory payments made by the employer to the pension scheme to either top up pension or underwrite the actuarial reduction to allow early access to pension benefits (sometimes known as strain costs for fully funded schemes) *

Payments for accrued annual leave or other time off owed to employee

Awards made by an Employment Tribunal or other court of law

Lump sum severance payments due under any compensation scheme for early exit, redundancy etc.

 

Payments for legal costs incurred by employee

 

Any additional payments made to employee e.g. for outplacement support

 

Discretionary payments made by the employer to the pension scheme to either top up pension or underwrite the actuarial reduction to allow early access to pension benefits

 

* For those employers who are part of Civil Service Pension Schemes, the rules of the scheme mean that any top up payments should be included

Page updated: February 2024

First published
23 August 2024
Last updated
31 March 2025 - show all updates

  1. Update to footnote in the borrowing, lending, and investment section

  2. Updates to wording of Annex 2 Internal control checklist for Certificates of Assurance.

  3. New FGN note added - FGN 2025/03 financial memoranda that accompany Scottish Government bills.

  4. Updates to the following sections following SPFM Strategic Review: Foreword, Accountability (and annexes), risk and subsidy Control. Also the addition of FGN 2025/02 explaining the updates

  5. Link in point 23 of Settlement, Severance, Early Retirement, Redundancy section updated.

  6. numbering in Annex 2 Internal control checklist for Certificates of Assurance updated due to a typo

  7. Updated Annex 2 Internal control checklist for Certificates of Assurance, added FGN 2025/01 re CoA checklist and added in a word version of the checklist.

  8. updated missing text in document SPFM - Non-Ministerial Offices model framework document July 2024.

  9. Adding in FGN 2024/03 re the updated AO Spend Control Template and Guidance.

  10. Updating the SRO Appointment letter in the documents section to include a point on construction projects in the Annex.

  11. Executive agencies model framework document updated.

  12. Non-Ministerial Offices model framework document updated.

  13. Updating the SRO Appointment letter in the documents section to this years dates

  14. Updated link to 'On Board: A Guide for Members of Statutory Boards' within Governance statements chapter.

  15. Updates made to model framework document templates.

  16. Updates made to text within Procurement chapter.

  17. Replaced non-ministerial office model framework document and advisory non-departmental public bodies model framework with updated versions.

  18. Document updated with an additional date - Settlement Agreement supporting documentation - final confirmation of terms

  19. Replaced Non-Ministerial Offices model framework document

  20. Updates to the Settlement, Severance, Early Retirement and Redundancy section. The main section and Annex's A, B C have all been updated along with updated documents and a Finance Guidance Note to explain the changes

  21. Updated the Certificates of Assurance chapter, Annex 2 with the CoA checklist questions for 2023/24 and added a Finance Guidance note outling the changes.

  22. Updates made to proportionate due diligence wording, Accountable Officer tests guidance, risk exposure guidance, public bodies duties, monitoring and management, exit arrangements.

  23. Procurement chapter updated.

  24. Updated 'Major investment projects' paragraph 12 and the SRO appointment letter.

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