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Staff lose out on pension under contractor transfer

first_imgStaff lose out on pension under contractor transferOn 18 Apr 2000 in Personnel Today Comments are closed. Related posts:No related photos. Thousands of public-sector employees could lose out on the chance to remainin the generous local government pension scheme (LGPS) when transferred out tocontractors.In a major deal between the DETR, authorities and unions signed last year,staff whose employment was taken over by a private contractor were to beallowed to remain in the LGPS.The regulations state that it applies only to Best Value authorities. Butexperts warn that legal opinion has suggested this could exclude LEA schools,further and higher education organisations and the Environment Agency.Authorities which provide services to external agencies, such as watercompanies, whose staff are then transferred to work for those agencies are alsonot covered. In one case alone involving the £4bn West Midlands pension fund and watercompany Severn Trent, about 500 employees will not be covered.The fund’s pensions manager Mike Woodall said that the confusion overpension rights have created problems for the personnel department astransferring staff were refusing to sign contracts until the issue wasresolved.”The number of people affected could run into the thousands. I thinkthere are still problem areas to emerge.”But Local Government Pension Committee head Terry Edwards said it is likelythat the DETR will put through amendments to extend the agreement’s coverage. Previous Article Next Articlelast_img read more

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