Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Outsourcing definition

What does Outsourcing mean? Outsourcing is the engagement of a third-party supplier to perform functions or services that would otherwise be carried out in-house, with the instructing organisation (including law firms and in-house legal teams) retaining responsibility for the outcome, client care and regulatory compliance. The term is descriptive rather than a single statutory concept, although sectoral rules define it for specific purposes (for example, FCA/PRA and Central Bank of Ireland rules on material outsourcing; SRA Standards and Regulations and law society rules on supervision, confidentiality and client notification). Typical features include an outsourcing agreement or master services agreement setting service levels, governance, audit...

Local authority outsourcing pensions: Best Value Direction, TUPE, and the Fair Deal 2013 LGPS deemed employer reforms (England and Wales)

Published by a LexisNexis Pensions expert

Practice notes

FORTHCOMING CHANGE :

On 13 October 2025, the Ministry of Housing, Communities and Local Government (MHCLG) opened a consultation on enhancements to the local government pension scheme (LGPS) in England and Wales. Among other measures, it sets out a reset of Fair Deal protections, bringing the scheme into line with the 2013 Fair Deal guidance and phasing out the use of ‘broadly comparable’ pension schemes for future outsourcing, except in limited exceptional cases. Rather than relying on admission bodies, a new default ‘deemed employer’ approach would allow all staff compulsorily moved under TUPE to keep uninterrupted LGPS membership, with the original Fair Deal employer remaining accountable for pensions. These safeguards would roll forward through re-tenders and later transfers, protecting access for ‘protected transferees’ and, where the employer chooses, for new starters on the contract. For members currently in broadly comparable arrangements, the plans anticipate bulk transfers into the LGPS that protect built-up final-salary rights, with future service building up on a CARE basis. Draft regulations giving effect to these Fair Deal reforms accompanied the consultation, indicating the government’s aim to bolster long-term pension security for outsourced local government staff...

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Gary Delderfield

Eversheds Sutherland

Gary Delderfield is a partner in Eversheds Sutherland's Human Resources Practice Group. He specialises in pensions and also heads our Public Sector Pensions Group.He advises trustees, employers and providers on a wide range of contentious and non-contentious pension issues. Gary is also a nationally recognised expert in the area of public sector pensions law advising clients on issues across local government, central government, education, health and voluntary sectors.His recent experience includes setting up a new final salary pension scheme, advising on a section 75 withdrawal arrangement, advising the trustees of a final salary pension scheme on the winding up of the scheme and advising a private contractor on the pension aspects of a large scale TUPE staff transfers from the public sector.Gary is a regular speaker on pension issues and speaks on the Local Government Employers' annual...

Web page updated on 21/05/2026

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