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ARTICLE · 31 MARCH 2010

Winning Contracts From The Public Sector

Smith & Williamson
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Many RPs tender for contracts outsourced from the public sector. Pension commitments associated with these contracts go beyond the standard TUPE requirements that apply to private sector transfers.

United KingdomReal Estate and Construction
Christopher Murray
Christopher Murray

Many RPs tender for contracts outsourced from the public sector. Pension commitments associated with these contracts go beyond the standard TUPE requirements that apply to private sector transfers.

Updated guidance for Best Value Authorities was published in December 2009 but experience suggests that some authorities are not as familiar with this (or previous guidance) as they should be. This leaves RPs exposed to the risk of taking on potential liabilities that they would not have acquired had the letting authority adhered to issued guidance.

Pension Options

There are two options available to contractors: adhere to the public sector scheme through 'admitted body status' (local government pension scheme (LGPS)) or 'direction status' (NHS scheme), or offer a private scheme that is deemed to be 'broadly comparable'.

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