Agenda item

To consider the attached report.

Officers submitted a report concerning the proposed admittance of two Transferee Admission Bodies to the London Borough of Havering’s Pension Fund. Under the terms of the Local Government Pension Scheme (Administration) Regulations 2008 where a transferee admission body and the scheme employer undertake to meet the relevant requirements of Regulation 6, an administering authority must admit to the Local Government Pension Scheme (LGPS) the eligible employees of the transferee admission body, and where it does so, the terms on which it does are noted in the admission agreement for the purposes of these Regulations.

Officers advised that investigations had been made to ensure that each body falls within the definition contained in Regulation 6 (2)(a)(i) of the Local Government Pension Scheme (Administration) Regulations 2008 and as such would be eligible to become a transferee admission body. Legal engrossment of the admission agreement is subject to the service transfer taking place.

1.     Sodexo UK and Ireland Ltd.

Sodexo are to be appointed Catering Services Contractor to Oasis Pinewood Academy, with the contract due to commence on 1 January, 2014 to 31 August, 2015, with the option to renew for a further 5 years.

When the contract starts two employees are to be transferred from the London Borough of Havering to Sodexo. The Transfer of Undertakings (Protection of Employment Regulations (TUPE) apply.

Sodexo intends to allow continuity of LGPS membership for the employees through a transferee agreement with the London Borough of Havering Pension Fund. The agreement will be a closed agreement. Sodexo will be required to provide a bond of £26K. The employer rate will be set at 22.4%.

This contract is impacted by the New Fair Deal Policy published by HM Treasury on 4 October, 2013.

The admission of Sodexo UK and Ireland Ltd as transferee body into the London Borough of Havering Pension Fund be noted subject to:

a.    All parties signing up to an Admission Agreement; and

b.    An Indemnity or Insurance Bond in an approved form with an approved insurer or relevant institution, being put in place to protect the letting authority/pension fund.

2.     Breyer Group PLC

Breyer Group PLC is to be awarded the contract with the London Borough of Havering to provide responsive repairs and maintenance services to Council owned and managed housing stock. The service transfer was scheduled to take place from 6 January, 2014. The contract is initially for a five year period with the option to extend for a further two years.

The arrangement will involve a second wave TUPE transfer of 30 employees of Morrison Facilities Services, of which 16 are currently members of the LGPS.

Breyer intends to allow continuity of LGPS membership for the employees through a transferee agreement with the London Borough of Havering Pension Fund. The agreement will be a closed agreement. Breyer will be required to provide a bond of £1,494,000. The employer rate will be set at 23.8%.

The admission of Breyer Group PLC as transferee body into the London Borough of Havering Pension Fund be noted subject to:

a.    All parties signing up to an Admission Agreement; and

b.    An Indemnity or Insurance Bond in an approved form with an approved insurer or relevant institution, being put in place to protect the letting authority/pension fund.