Public Sector Outsourcing – Introduction
Companies taking on employees from the public sector also 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.
The Government rules for transfers from central government schemes (PCSPS, NHSPS, and the TPS) are laid out in guidance known as the “Fair Deal”, which was significantly updated in June 2004. There is similar guidance covering local authority employees transferring from the LGPS. Whilst this guidance offers companies a number of options available to them to meet the required standards, these options all have advantages and disadvantages which must be assessed before a decision is taken on which is the best route for a contractor to follow.
LCP has undertaken a survey investigating the experiences and attitudes of companies in the public sector outsourcing market to the Government's “Fair Deal for Staff Pensions” requirements, and also includes input from the Treasury. To download the report, please click here.
For advice regarding these issues, or for further information, please contact our Public Sector Outsourcing team.
