These draft regulations amend the Local Government Pension Scheme Regulations 2013 (SI/2356), and the Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014 (SI/525) and introduce the ‘Fair Deal for staff pensions’ for staff in the local government pension scheme who are compulsorily transferred to another service provider.

The PLSA broadly welcomes the proposals set out in this consultation. It is very important to ensure that an individual can take advantage of continued access to saving within the LGPS when their services are transferred under a local government outsourcing arrangement. The regulations following on from the principles set out in HM Treasury’s “New Fair Deal” guidance has been long awaited. By reducing the need for ‘bulk transfer arrangements’ these proposals will simplify the TUPE process, while giving savers reassurance regarding their ongoing participation in the scheme. However, these proposals are missing a core part of the principle of the New Fair Deal in the form of pass-through arrangements.  

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