Are you thinking about outsourcing?
We have seen several delays in such outsourcings, where the admission agreement has not been put in place for the contract start date. We would like to take this opportunity to remind those of you who are planning to outsource a service contract, that the admission agreement must be in place before the start of the new contract.
If the admission agreement isn’t completed on time, there could be serious consequences for you as the outsourcing employer, and for your employees attached to the contract. It's important to remember that while our current fund policy is to backdate late admissions to the contract start date, this isn’t something we have to do by law. If in the future, we chose not to backdate, this would mean employees affected would not have continued membership in the fund and would need pension protection for this membership break.
It’s also important to consider any deaths in service or retirements that may happen whilst the admission agreement is outstanding. Benefits of members will be affected and as a result they could experience financial hardship. If you need any more information about admission agreements or outsourcing contacts please get in touch.
For more information please check out our guide to current scheme employers considering outsourcing