The new Fair Deal for public sector pension transfers

HM Treasury has published new guidance on its Fair Deal policy. This follows a lengthy consultation process beginning in March 2011.

The guidance sets out how the reformed Fair Deal will operate, crucially offering staff transferred from public sector employment continued access to a public service pension scheme.

Key points in the new guidance are: when staff who are members of a public service pension scheme move from the public sector to an independent contractor by TUPE transfer, they will continue to be eligible to be members of the public service pension scheme; contracting authorities should ensure that when staff who were members of a public service pension scheme are compulsorily transferred from the public sector to an independent contractor, the contractor provides them with access to the appropriate public service pension scheme; and staff who have already been transferred out of the public sector and to whom the old Fair Deal applied will be entitled to return to their old public service pension scheme on the re-tendering of the contract…

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