
A party seeking to restrict another's commercial activities must consider whether such terms are normal in similar, factual and contractual circumstances.
Review of contributions
The government has given administering authorities of LGPS pension funds the ability to review employer contributions in between three-yearly valuations in three circumstances:
The government has made clear that market volatility or changes in asset values would not be a proper basis for the use of this new flexibility.
This would enable LGPS funds to respond to circumstances where the employer's liabilities substantially reduce or increase because of a TUPE transfer or local government re-organisation or where an employer's financial strength weakens materially. It also allows employers to request a review. The government has suggested that the potential impacts of Covid-19 might be a circumstance leading an employer to ask for a review.
Flexibility on exit payments
The government has recognised that employers may feel trapped into accruing further liabilities in the LGPS that they cannot really afford because they are also unable to afford the exit payment that would fall due if all employees stop accruing benefits. Whilst some LGPS funds already allow this sort of arrangement, the government wanted to put this on a formal footing.
The government has therefore introduced deferred debt arrangements (DDAs) which allow employers to defer an exit payment and to pay this off over time by way of continuing contributions. This has the potential to allow employers who want to reduce their liabilities to do so without risking insolvency or a substantial impact on their operations caused by a large exit payment.
There are a number of points to note about the new DDAs:
This new arrangement substantially mirrors arrangements introduced for private-sector pension schemes in April 2018 so we already have experience of negotiating these sorts of agreements in relation to private sector schemes.
For advice in relation to deferred debt arrangements (DDAs) or options for managing liabilities in the LGPS, contact Doug Mullen.
A party seeking to restrict another's commercial activities must consider whether such terms are normal in similar, factual and contractual circumstances.
This ebriefing considers the Government’s proposals for challenges, as set out in Chapter 7 of the Green Paper entitled 'Fast and fair challenges'.
We’re delighted to announce that we have been ranked in the top five national legal advisers in the Top 3000 Charities 2021 directory.
The Law Commission published its report on Technical Issues in Charity Law in September 2017 following a public consultation.
Changing charitable purposes and amending governing documents.
One of the stated aims of the Green Paper is “to deliver the best commercial outcomes with the least burden on the public sector".
The proposals concerning dynamic purchasing systems (DPS) and framework agreements are the most disappointing aspect of the Green Paper.
Family team partner, Elizabeth Wyatt, is delighted to congratulate Kadie Bennett for attaining Resolution Specialist Accreditation in both children law - private and complex financial remedy matters.
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