Next in our series of ebriefings on the Government’s Green Paper: Transforming public procurement; looking at the Chapter 4 proposal to change the basis of contract awards.
The deputy chief actuary at the Government Actuary’s Department has estimated that 1% could be added to Local Government Pension Scheme (LGPS) liabilities if transitional arrangements introduced in 2014 are confirmed to be discriminatory.
With a valuation currently in process, this isn’t the sort of news that employers want to hear.
The Court of Appeal decided in the McCloud case late last year, that the transitional arrangements for employees contributing to public sector pensions when the schemes moved from a final salary to a career average basis, were indirectly discriminatory against younger employees. We wait to see whether the Government will be given leave to appeal to the Supreme Court following the Court of Appeal’s decision. If this decision in the McCloud case is confirmed, this will increase the costs for all public sector schemes, including the LGPS. This is because the pension schemes may have to offer transitional measures to all members. If this is the case, it is estimated that the LGPS liabilities will increase by 1% and possibly increase more in other unfunded public sector schemes.
Given the direction of travel of this case, the Government announced in January that it would be pausing any changes arising from breach of the cost cap mechanism (see our earlier briefing on the cost cap mechanism, here) in the absence of any certainty as to pension costs and funding. The Government has said that it is impossible to assess the value of the current pension arrangements until there is more certainty and the results of the schemes’ four-yearly valuation are received.
In this period of uncertainty, the best, albeit rather pessimistic advice, is to plan for the impact of the courts’ ruling against the Government in the McCloud case. Employers can expect to see a rise in pension costs and should start the budgeting process to be prepared for the worst!
For more information
For more information, please contact Doug Mullen.
The Academies Financial Handbook is updated annually by the Department for Education and the Education and Skills Funding Agency; it contains a number of governance requirements for academy trusts.
Supreme Court publishes key decision for those working in the UK’s gig economy.
The 'Chocolate Snowman Appeal' is an amazing initiative that Anthony Collins Solicitors' (ACS) employees take part in every year.
The Building Safety Bill (the Bill) is said to be the most significant and wide-ranging change to the regulatory environment for higher risk building (HRBs) for over 45 years.
On 4 November 2020, the Restriction of Public Exit Payments Regulations 2020 (the Regulations) came into force; exit payments for the public sector were capped at £95,000.
The case was brought by the Official Receiver who sought disqualification orders under section 6 of the Company Directors Disqualification Act 1986 (CDDA 1986) against the seven trustees of Kids Company and its CEO. It illustrates well the tension between the role of a fulltime paid CEO of a large charity and the role of its board as voluntary trustees/directors.
At the end of 2020, The Charity Governance Code was updated or 'refreshed' as it is termed on its website.
Anthony Collins Solicitors is today (Thursday 11 February) revealing the scale of its social impact during 2020.
In their first podcast of this series, current and future trainees will discuss their journey and route to securing a training contract at Anthony Collins Solicitors.
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