GJH Pensions

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Local Authority Contracts - Worth it?

26th November 2015 by Gareth Hopkins

The Pensions and Lifetime Savings Association, formerly the National Association of Pension Funds, recently hosted a free seminar for charities in recognition of the pension difficulties the third sector are facing. If that wasn’t exciting enough, I was invited to present and take questions on an expert panel – the subject, Local Government Pension Risk.

Alongside me sat:

  • Tony Williams (Head of Employer Services, London Pensions Fund Authority);
  • Jeff Houston (Head of Pensions, Local Government Association) and;
  • John Prior (Principle, Punter Southall)

The event was a perfect opportunity to educate delegates on how exposed their charity could be to obscenely large invoices when exiting the Local Government Pension Scheme.

For more information on the pension risk associated with taking on local government contracts, you can read my article for Pensions Insight.

The ‘new’ Fair Deal (published October 2013) mitigates the pension risk as outlined in my article for Pensions Insight. The revised legislation applies to central government departments, such as: the Principle Civil Service Pension Scheme (PCSPS); the Teachers’ Pension Scheme (TPS); and the NHS Scheme – basically, anyone and everyone apart from local authorities (i.e. the LGPS). Why the revised Fair Deal was not extended to local government is anyone’s guess.

Now the good news – at the charities seminar, Jeff Houston confirmed that the new Fair Deal legislation would extend to the LGPS, and that the wording has already been drafted.

Then the bad news – when the updated legislation will be published is unknown. My inkling is that we are talking years, not months. So, in the meantime, make sure your charity has a robust process in place to mitigate pension risk (it can, and should, be done).

We have helped a plethora of charities and other organisations mitigate LGPS risk with our TUPE transfer toolkit. Feel free to contact me to talk through this passion project of mine. . .


Gareth Hopkins is Director at GJH Pensions. To keep up to date with all the latest GJH Pensions news you can subscribe to our newsletter here or follow us via twitter @GJHPensions. GJH Pensions are an independent consultancy offering practical solutions to all things pensions. Our industry expertise, and personal approach, means we can truly understand the bespoke requirements for each client. Contact GJH Pensions today for a free consultation on 07446 148 537 or email gareth.hopkins@gjhpensions.com.