The rules

The rules

When outsourcing public services there are statutory guidelines in place setting out what local authorities, schools and academies must do to protect the pension rights of any staff transferring to the new provider under TUPE arrangements.

The Best Value Authority Staff Transfers (Pensions) Direction 2007: This guidance applies to  ‘Best Value Authorities’. This includes local authorities, combined authorities and fire and rescue authorities. Schools maintained and controlled by a local authority (LEA schools) are also covered by this guidance.

It says, when outsourcing services from a best value authority to a contractor, pension protection must be secured for the transferring employees. This means,  ensuring the contractor provides ongoing access to the LGPS through an admission agreement or provide access to a broadly comparable scheme, certified by an actuary. These arrangements should be made before the transfer takes place.

Fair Deal for staff Pensions: Also known as New Fair Deal this guidance applies to central government departments including academy trusts, which fall under the control of the Department for Education. It says that, when outsourcing services, trusts must ensure the contractor provides ongoing membership of the LGPS to all staff eligible for the LGPS transferring to their employment. There is no option to provide a broadly comparable scheme under this guidance.