Best Value Authorities Staff Transfers (Pensions) Direction 2007

If you are either a best value authority, such as a local authority, or a private contractor who contracts with best value authorities, then this Direction will be relevant to you.

The Department for Communities and Local Government (DCLG) has issued the Direction under powers contained in Section 101 of the Local Government Act 2003. The Direction comes into force on 1 October 2007 and gives statutory force to pension protection on staff transfers when a relevant best value authority outsources the provision of services.

On the one hand, the 2007 Direction brings greater certainty by giving statutory force to some of the principles contained in the existing non-statutory Fair Deal Guidance on pensions. On the other hand, the 2007 Direction differs from Fair Deal in a number of key areas which could add confusion to an already complex area.

Both best value authorities and private contractors who contract with them need to be aware of the requirements of the Direction when negotiating new service contracts or re-letting existing service contracts after 1 October 2007. In particular employees must now be given direct rights to enforce the pension protection provision of the contract.

For further details please click on the following link: http://www.bevanbrittan.com/pdfs/LGPS_3_final.pdf