Pension Fund Consequences of TUPE Transfers

May 27th, 2021 by James Goudie KC

When a local authority enters into a contract for services with a body that is admitted to the LGPS terms may be agreed with respect to pension risk. R (Enterprise Managed Services Ltd ) v SoS for MHCLG and Northamptonshire Councils (2021):1436 (Admin) concerns when the contract comes to an end and the contractor/employer exits the LGPS and there is a deficit in relation to the liability to pay benefits.

In this context the LGPS Regulations have been amended. Bourne J holds that the amendments are lawful. They are not invalidated as being unjustifiably and unlawfully retroactive and retrospective, contrary to any of common law, ECHR Arts 6, 14 and 1/1, or EU State Aid provisions.

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