Government commits to bring in Fair Deal on pensions for transferred staff

The government has confirmed that civil servants who are transferred out of the service will be allowed to retain membership of their current pension scheme.

Danny Alexander, chief secretary to the Treasury, yesterday confirmed in a ministerial statement that this pledge covered “all staff whose employment is compulsorily transferred from the public sector under TUPE to independent providers of public services.”

Prospect has welcomed his statement, which represents one of the key outcomes of the agreement to settle the public sector pensions dispute earlier this year.

Dai Hudd, deputy general secretary, said: “This represents a significant breakthrough for one of Prospect’s key objectives in the pensions negotiations, and meets a long-held aspiration to help protect members who are transferred.”

Hudd said it was encouraging that the government is also looking at how to apply the new policy to people who have already transferred under the previous arrangements, and whose contracts may be affected by future retendering.

The changes will come about as a consequence of the Public Service Pensions Bill now passing through parliament, which will bring in the new arrangements in 2015.

Prospect made a particular issue of Fair Deal in the pension talks earlier in 2012. The government’s agreement to make the change will benefit many thousands of other civil servants who will also be affected by contracting out over the coming years.