Consultation on Fair Deal policy
Close date: 15 June 2011
The Government consults on proposals to change the Fair Deal policy. The Fair Deal is a non-statutory policy that applies to public sector pensions when employees are compulsorily transferred to a non-public sector employer and requires the new employer to provide a broadly comparable pension scheme to transferred staff. The Independent Public Service Pensions Commission conducted a report that stated that the policy is a "barrier to non-public service providers, potentially reducing the efficiencies and innovation in public service delivery that could be achieved". The consultation document sets out the objectives that the future policy might meet, which are: delivering value for money for the taxpayer; providing an appropriate level of protection to public sector employees; removing barriers to the plurality of public service provision; and allocating the costs and risks of pension provision appropriately. The Government proposes a range of possible options for the future policy.
Consultation document: Consultation on the Fair Deal Policy: treatment of pensions on compulsory transfer of staff from the public sector (PDF format, 331K) (on the HM Treasury website)