A pass-through agreement is and common way for academies to share the risks of participation in the Local Government Pension Scheme (LGPS) when outsourcing services.
The Local Government Pension Scheme (LGPS) provides benefits to a much wider constituency than just local government employees. Housing associations, academies, charities, social care providers and those providing services on behalf of local government organisations may also participate in the LGPS.
For many employers unfamiliar with defined benefit pension schemes, participating in the LGPS feels like navigating a minefield – employer contribution rates fluctuate and additional contributions can be triggered by events such as redundancies and ill health retirements. Leaving the LGPS can also be difficult with large exit payments often required.
We have extensive experience in helping employers to find a way through the complexities, managing the risks whilst still achieving their organisational aims.
Recent Local Government Pension Scheme advice
- Supporting a housing association to restructure its group without triggering an exit payment;
- Assisting an academy to implement a policy about how it will exercise its discretions;
- Helping a charity to consult with its staff about exiting the LGPS;
- Advising a local authority about the risks of a voluntary redundancy programme;
- Working with an academy to share the risk of LGPS participation when outsourcing its school meals service;
- Supporting a local authority to address complaints by employees through the internal dispute resolution procedure;
- Helping a housing association to make representations about payment of an exit credit;
- Guiding a housing association to negotiate a deferred debt arrangement;
How we help employers with their participation in the Local Government Pension Scheme
- Assessing the risks of participation;
- Negotiating arrangements to share the risks of participation where services are outsourced;
- Understanding the obligations of participating employers;
- Avoiding unintentional exits on a merger or restructuring;
- Managing risks around redundancy, ill-health retirement and early retirement;
- Addressing complaints by employees through the Internal Dispute Resolution Procedure;
- Exercising discretions to award additional benefits;
- Understanding available exit options and any associated risks;
- Negotiating the terms of an exit.
For more information
Please contact Douglas Mullen
Libby Hubbard is joined by Anna Dabek to explore employment case law and in particular to discuss the Harpur Trust holiday case in anticipation of the long-awaited Supreme Court decision.
Doug Mullen and Michelle Knight discuss the recent judicial review of regulations changing the regime governing exit credits in the local government pension scheme.