We have submitted our response to the White Paper Consultation based on the discussion held at the “Planning for the Future - what does this mean for affordable housing” webinar we held on Fri 9 Oct
Results from the latest three-yearly valuation of the Local Government Pension Scheme (LGPS) are starting to trickle through. With the results used to set contributions for the next three years, finance directors will be hoping that their liabilities and contribution rates are not rocketing upwards.
Whatever the outcome, the Regulator of Social Housing’s 2019 sector-risk profile makes clear that Boards are expected to take a proactive approach to managing the risk of increasing costs. It recommends that Boards seek independent legal advice, where appropriate, to understand their exposure to risk and the impact on their cash-flow arrangements. The sector-risk profile highlights that those running low-margin operations, such as care and support, are seen as particularly at risk.
With around 90 different LGPS funds, each of which will have seen different investment performance over the last three years, housing providers can expect to see differing outcomes from the valuation. The fact that the UK did not exit the EU on 29 March 2019 is likely to have had a positive impact, bearing in mind the valuation date of 31 March 2019. However, the Government's defeat in the McCloud case is estimated to have added 1% to liabilities in the LGPS, although, in practice, experience will vary from employer to employer depending on the age profile of the workforce.
The valuation results will provide a useful prompt to employers to review whether continued participation in the LGPS is in their best interests. Increasingly, we have seen employers closing to new joiners or exiting the LGPS entirely. The often considerable exit payments that are triggered are a significant disincentive but our experience is that LGPS funds are increasingly willing to consider staging payments over a period of years rather than insisting upon one payment shortly after exit. This approach has been given a boost by a recent government consultation that suggested that the Government is looking at introducing explicit permission for LGPS funds to explore this.
Careful consideration of admission agreements, stock transfer agreements and employment contracts will be required, as will an assessment of the likely reaction of staff to a change. However, for many, exiting has become a question of when, not if.
For more information
For advice on understanding and managing your LGPS risks, please contact Doug Mullen.
Anthony Collins Solicitors is pleased to have been ranked as a Band 1 firm once again.
Since March 2020, commercial property owners and occupiers across many sectors, whether housing associations, charities, care providers or local authorities, have been impacted by the rules regulating how they deal with their tenants and their landlords. It seems each week there is a change in policy, regulation or legislation, governing how they must respond.
A key element of the Bill is the establishment of a duty holder regime and requirement to maintain the ‘golden thread of information’ throughout the life cycle of high-risk residential buildings
We have been working with care homes to update their contracts and advise on the risks of charging the resident a regular “top-up” or additional fee where a resident is funded through NHS CHC
The parliamentary processes are complete and the Restriction of Public Exit Payments Regulations 2020 (“the Regulations”) which cap exit payments in the public sector at £95,000 will be in force from 4 November.
As the UK’s social housing sector recovers from the initial Covid-19 outbreak and lockdown, now is the time to focus on the challenges that may emerge next.
There is no universal approach to regenerating town centres. However, housing must be considered a key part of any regeneration project – providing well-needed new homes and economic growth.
Friday 16 October marks the 6th annual Wear Red Day in England, Wales and Scotland. Wear Red Day is the brainchild of the charity; Show Racism the Red Card (SRTRC). SRTRC aims to educate young people so they are equipped to recognise and challenge stereotypes, misconceptions and negative attitudes towards race.
Alongside the Building Safety Bill published in July 2020, the Fire Safety Bill is a key step in the Government’s strategy to improve building and fire safety in the wake of the Grenfell Tower tragedy
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