Agenda and minutes

Report to follow.

The Committee were advised that Innovate Services Limited had won the contract to provide Catering services to Drapers Academy. The contract was for three years with the possibility of extending for a further two years. The contract was due to commence in September 2012, replacing the previous contract which was provided by LBH Catering Services.

When the contract transfers to Innovate Services Limited in September 2012 the contracts of employment of six employees were due to be transferred from the London Borough of Havering to Innovate Services Limited. The Transfer of Undertakings (Protection of Employment) Regulations (“TUPE”) applied to the employment terms and conditions of the relevant employees except for pension rights. Five of the employees concerned were members of the LGPS.

In accordance with Government policy for Local Government employers, Innovate Services Limited were required to provide pension benefits for future service which were broadly comparable to those provided under the LGPS or to participate in the LGPS for the provision of pension benefits for the transferring employees.

Innovate Services Limited do not have a broadly comparable pension scheme and have applied for admitted body status to Havering’s Pension Fund, solely for the benefit of the five transferred employee who were currently members of the LGPS. If agreed, Innovate Services Limited would be admitted under a ‘closed’ agreement, whereby only those employees transferring at the time the contact was effective would be admitted to the scheme, any new or existing employees of Innovate Services Limited would not be eligible to join.

The Pension Fund’s Actuary had assessed the level of indemnity bond required as £64,000 although this would need to be finalised. The contribution rate set by the Actuary for membership was 20.07% of pensionable pay.

The Committee AGREED  to admit Innovate Services Limited to Havering’s Pension Fund, as an Admitted Body, to enable the five members of staff who transferred from the Council under TUPE to continue membership (or have the right of membership) of the Local Government Pension Scheme (LGPS) subject to:

1. All parties signing up to an Admission agreement; and

2. An indemnity or insurance bond in an approved form with an authorised insurer or relevant institution, being put into place to protect the pension fund.