Contingent Liability: Local Government Pension Scheme Guarantee
(1 week, 2 days ago)
Written StatementsRead Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Education (Bridget Phillipson)
I am today laying before both Houses a departmental minute on the use of a contingent liability by the Department for Education to provide a local government pension scheme guarantee to further education providers operating in the statutory sector.
The Department for Education further education local government pension scheme guarantee is a Government commitment to fund pension deficits in the event of a closure and where the provider’s reserves are insufficient to fund their own LGPS deficit upon closure.
We expect LGPS administering authorities to recognise the Crown guarantee provided by the further education guarantee in their funding strategies, setting employer contribution rates and deficit recovery periods.
A full departmental minute has been laid in both Houses providing more detail on this contingent liability.
[HCWS202]