In recent years, there has been a steady move away from occupational final salary (defined benefit) pensions schemes, in favour of money purchase (defined contribution) schemes.
Employers prefer the relative safety and simplicity of such schemes. However some employers (notably those in the public sector or who contract with the public sector) may have to know about final salary schemes like the Local Government Pension Scheme (LGPS).
Private and voluntary sector organisations can find themselves taking on or inheriting public sector contracts, where the staff assigned to such contracts enjoy public sector pension benefits. As a condition of securing new public sector contracts, organisations are often required to comply with various Government Codes of Practice and Directives that assure former public sector staff of continued membership of pension schemes. As a result, incoming contractors need to be aware of the consequences of successfully tendering for such contracts and the obligations that arise as a result.
We can help in providing strategic guidance as well as day to day advice and support associated with:
- Pensions protection obligations owed to public sector transferring employees
- Local Government Pensions Regulations
- Admission Agreements and Bonds or Indemnities.
In addition, we can draft and advise on documentation associated with incoming contractor employers being admitted into existing LGPS schemes and TUPE provisions including pensions provisions (including indemnities and broad comparability issues) in public sector contracts.
For further information please contact one of the team.