Kate Payne comments in Pensions Expert on FirstGroup merging funds within LGPS
Transport operator FirstGroup has become the first major private sector employer to consolidate its pension funds within the Local Government Pension Scheme, as experts agree that similar mergers could be on the horizon.
Kate Payne noted that the need for approval from the secretary of state for FirstGroup’s consolidation within the LGPS indicates that it is a change that would have required specific regulations.
The LGPS differs from private sector pension arrangements in that an employer becomes an admitted body normally because it is providing outsourced services.
That is not to say that the receiving LGPS fund is “not going to be very mindful about what’s coming their way and making sure that effectively the liabilities they’re taking on are fully covered by the assets that are transferring”, Kate explained.
Read the full article in Pensions Expert here
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