ADMITTED BODY STATUS PROVISIONS IN THE LGPS
Guidance on ABS provisions
Thu Dec 24 2009
THE DEPARTMENT FOR COMMUNITIES AND LOCAL GOVERNMENT (DCLG) has issued guidance explaining the regulatory position provided for in the Local Government Pension Scheme (Administration) Regulations 2008 [2008/239] (as amended) about how external providers, such as companies or third sector organisations, can be admitted to the LGPS. It also sets out the pension considerations that arise when employees transfer from a local authority to an external provider (referred to as a ‘contractor’ throughout the rest of the guidance).
This guidance is aimed at local authorities in England and Wales and, in particular, those responsible for delivering best value, letting authorities and their procurement officers, and administering authorities. It is also applicable to contractors such as private and third sector companies and organisations, and the employees of all these organisations, together with other interested parties.
This non-statutory guidance makes it clear that pensions issues should not be seen in isolation from any tendering and procurement exercise, the guidance also signposts The Best Value Authorities Staff Transfers (Pensions) Direction 2007. Failure to give these issues early and full consideration may cause concern and uncertainty for transferring staff and delay the transfer of the service.
This guidance offers a practical guide to the admitted body status (ABS) provisions in the regulations. It is recommended, however, that practitioners and any other interested parties take their own legal advice on the application of the regulations to their particular circumstances.
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