Local Government Pensions Scheme in England and Wales - Scheme Improvements (Access and Protections)

Closes 22 Dec 2025

Optional expansion of New Fair Deal beyond originally outsourced workers

Figure 3 - Proposed approach to allow RC and FDE to extend LGPS membership

 

117. The draft regulations outline that when a contract is renegotiated or retendered, all staff working on an outsourced contract (at that point) can be granted protected transferee status. This protection would apply provided the staff continue to work “wholly or mainly on the activities which are being carried out by a relevant contractor on the Fair Deal employer’s behalf”. To ensure the contract is retendered on an equal basis, the Fair Deal employer would need to decide before the contract is put out to tender if the protected transferee status would also apply to  workers who join after the contract is initially outsourced. That protected transferee status would then be maintained in the event of any subsequent transfers, in the same way it would for the originally outsourced workers. This differs from the current situation where staff who join after an initial outsourcing are not protected or covered by the Best Value Directions, whilst noting that those staff may still be offered LGPS membership, via an “open” admission agreement. 

Q30 – Do you agree with the proposal that all staff (including those joining a contract after first outsourcing) would be eligible for protected transferee status, providing all relevant parties agree?