Central government outsourcing—Fair Deal 2013 and pensions
Produced in partnership with Paul Carney of Shoosmiths

The following Pensions practice note produced in partnership with Paul Carney of Shoosmiths provides comprehensive and up to date legal information covering:

  • Central government outsourcing—Fair Deal 2013 and pensions
  • Fair Deal protection—background history
  • What is the purpose of Fair Deal?
  • Development of Fair Deal 2013
  • Fair Deal consultation
  • Agreements with public service pension schemes
  • Government responses
  • Draft guidance
  • What is Fair Deal 2013?
  • Main differences between old Fair Deal and Fair Deal 2013
  • More...

Central government outsourcing—Fair Deal 2013 and pensions

Special provisions normally apply to ensure a minimum level of pension protection for employees whose employment compulsorily transfers from central government to private sector contractors as a result of outsourcing of services. These protections are commonly known as ‘Fair Deal’.

Fair Deal protection—background history

Fair Deal guidance was originally published in Annex A of the HM Treasury Guidance ‘Staff Transfers From Central Government: A Fair Deal for Staff Pensions’ which was issued in June 1999 and was addressed only to central government departments and agencies. This original guidance (which is referred to as ‘old Fair Deal’ in this Practice Note) developed over time as follows:

  1. in January 2000, old Fair Deal was annexed and referred to in the Cabinet Office Statement of Practice ‘Staff Transfers in the Public Sector’ (COSOP) which was subsequently revised in November 2007 and December 2013. The decision to annex old Fair Deal to COSOP was significant as the government expects public sector organisations—other than just central government departments, agencies and the National Health Service (NHS)—to follow COSOP. The COSOP sets out the policy to follow when public sector organisations contract with the private sector or a voluntary organisation and extends to transfers within the public sector

  2. in June 2004, supplementary guidance, ‘Fair Deal for Staff Pensions: Procurement of Bulk Transfer Agreements and Related Issues’, was

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