The Law Commission published its report on Technical Issues in Charity Law in September 2017 following a public consultation.
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.
Changing charitable purposes and amending governing documents.
Charity registration financial thresholds.
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.
On 11 February 2021, the Pension Schemes Act 2021 was given royal assent, setting out a framework for several major changes that will certainly be of interest to employers and pension funds alike.
Matthew Wort, partner, speaks on today’s Supreme Court judgment for sleep-in shifts.
The Supreme Court has today (19 March 2021) handed down judgment in the cases of Royal Mencap Society v Tomlinson-Blake and Shannon v Rampersad (t/a Clifton House Residential Home).
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.