Public sector hot topic: Outsourcing special – where now for the LGPS?

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Since 1999, the Fair Deal guidance has set out the Government’s policy for protecting the pension benefits of public sector staff who are compulsorily transferred to private sector employers (most commonly on the outsourcing of a public service or function to the private sector).

The Fair Deal has always applied to central government departments, agencies and the NHS but not directly to local and “best value” authorities. The latter authorities are required, by virtue of the Best Value Authorities Staff Transfers (Pensions) Direction 2007 (the “2007 Direction”), to deal with pension arrangements in accordance with principles similar but not identical to the Fair Deal.

In this hot topic we discuss the Government’s recent consultation on the new Fair Deal and its next steps.