LGPS: more consultation on admitted body status

Partnerships between the public and the private sectors often involve a TUPE transfer of employees from the public body to the contractor. The Fair Deal principles govern the transferred employees' pension provision.

Under Fair Deal, a contractor may either provide a pension scheme which is "broadly comparable" to the Local Government Pension Scheme (LGPS) or become a participating employer (known as an "admitted body") in the LGPS.

The Department for Communities and Local Government (CLG) is concerned that local authorities are not operating the admitted body status provisions consistently. CLG have issued an informal consultation document on admitted body status. This is the second consultation document on admitted body status in the last two years.

The consultation does not affect community admission bodies within the LGPS or arrangements applying to broadly comparable pension schemes. Consultation on the current document closes on 10 April 2008.

Find out more about the potential implications for both contractors and outsourcing local authorities from Wragge & Co's pensions team.