The use of large up-front fees and disproportionate deposits has already resulted in significant cost consequences for one care provider.
In addition, existing employees who become eligible after 1 October 2012 will also automatically join the scheme.
Organisations whose new employees are eligible for LGPS membership (i.e. the admission agreement does not just cover specific transferring employees) will need to check their admission agreements to see whether new employees are automatically designated under the applicable agreement to see if they are affected by these changes. If they are designated under an admission agreement, new employees will need to automatically join the LGPS from the start of their employment. Where a provider offers new employees a choice of scheme membership, including LGPS membership, they will need to seek amendments to their admission agreement.
For more information
For further information or advice on ways of dealing with this development please contact Matthew Wort on 0121 214 3501, email@example.com or Douglas Mullen on 0121 212 7432, firstname.lastname@example.org.
The government announced on 16 May that it will provide a fund of £400m to cover the costs of removal and replacement of cladding to high rise residential blocks which have failed tests.
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