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Background
The new Fair Deal guidance is published following two consultation exercises. The response to an initial consultation on reform of the Fair Deal policy was published in November 2012. This can be viewed at the following link.
The November 2012 consultation response included further questions to seek views on how the reformed Fair Deal policy should apply to staff that have already been compulsorily transferred out of the public sector under the old Fair Deal.
Read the response to the further consultation, which is published alongside this guidance
New guidance
The new guidance sets out the detail of how the policy will operate. The new approach to Fair Deal set out in the guidance will ensure that staff compulsorily transferred out of the public sector will continue to have access to good quality pensions.
It will also achieve better value for money for the taxpayer by reducing the costs and risks to employers associated with the provision of broadly comparable pension schemes, thereby opening public services to greater competition.
The new guidance applies directly to central government departments, agencies, the NHS, maintained schools (except where they are covered for other arrangements for local government) and any other parts of the public sector under the control of government ministers where staff are eligible to be members of a public service pension scheme.
The government is fully committed to the full timely implementation of the letter and principles of the Fair Deal and Cabinet Office Statement of Practice (COSoP) policies under the oversight of HMT.
Departments are responsible for compliance with, and completion of, the protections for staff relating to such a transfer of employment:
- Transferred staff must be entered into the appropriate pension arrangement from the staff transfer date.
- This means that, before the staff transfer date, any necessary application process for membership of the relevant public service scheme must be completed.
- Where the transfer is to a broadly comparable pension scheme, broad comparability certification requirements must also have been met by the staff transfer date.
- Completion of the required bulk transfer option is expected to be achieved within 12 months of the staff transfer date to avoid disadvantaging the transferred staff.
In some public service pension schemes the new arrangements start immediately. The Cabinet Office has now made amendments to the Civil Service Pension Scheme to allow independent employers to participate in the scheme under the new arrangements. More detail on the arrangements for applying the new approach in the Civil Service Pension Scheme.