Public sector outsourcing

The UK Government rules for transfers from central government schemes (PCSPS, NHSPS, and the TPS) are laid out in guidance known as the "Fair Deal". There is similar guidance covering local authority employees transferring from the LGPS. Whilst this guidance offers companies a number of options available to meet the required standards, these options have advantages and disadvantages which must be assessed before a decision is taken regarding the best route for a contractor to follow.

What we offer

From your initial bid to the end of the contract, we can advise you on the following specialist areas as well as more general corporate advice:

• The best route for meeting the "Fair Deal" requirements (see below), including the benefit design for Government Actuary's Department (GAD) "passport" schemes
• Liaison with GAD over obtaining and maintaining GAD passports
• The cost allowance to be included in contract bids for pensions and redundancies
• Negotiations on bulk transfer terms
• Reviewing contract wording, LGPS admission agreements and bond agreement wording from an actuarial perspective
• Analysis and financial modelling of the investment and funding risks on fixed-term contracts
• Calculation and modelling of redundancy cost obligations transferred under TUPE from public sector employment

More information

Companies hiring employees from the public sector take on significant financial risks relating to their pensions and redundancy benefits. To avoid unpleasant surprises, these risks must be properly allowed for in tender pricing and carefully managed during the term of the contract.

Our expertise

The specialist multi-disciplinary LCP Public Sector Outsourcing Group has over 15 years experience of advising on all aspects of the pensions and redundancy benefits of employees transferring from the public sector. We have dealt with contracts of all sizes, from less than ten employees up to several thousand. Based on this experience, we can advise you on the options which will work best for each outsourcing contract in the context of your organisational structure.