Pension costs of ending outsourcing
Received: 21 July 2022
Your decision to reverse outsourcing is attracting attention. I want to clarify the impact on the council of the high value of public sector pensions compared to the private sector.
1) Were employees who transferred out able to keep their membership of the Local Government (LG) Pension scheme or a scheme offering similar benefits?
2) Were people employed by Capita during the period of outsourcing able to join the LG scheme or one offering similar benefits?
3) Will people returning to council employment be able to join the LG scheme? If so have any additional costs of their membership been factored in to the costs of ending outsourcing?
4) Will new employees of the council recruited after the end of outsourcing be able to join a better pension scheme than that offered to those recruited by Capita? If so, have these costs been calculated?
5) What level of funding does the local version of the council pension scheme have - i.e. is it 100% funded, 80% etc? Have the trustees warned of increased employer contributions being in prospect as a result? Have such additional recurrent costs been added to the cost of ending outsourcing?
If you regard the whole of this request as costing too much to reply to, feel free to not answer (5). (4) follows from the answers to earlier sections, but it would be helpful to have an explicit statement.
Outcome / Documents
- Response (all information to be supplied) - application/pdf - Download