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Local authority staff transferred into a care trust could lose their right to remain in the local government pension scheme, Community Care has learned, writes Jonathan Pearce and Lauren Revans.

All local government workers transferred to a care trust – officially an NHS body – are entitled to join the NHS pension scheme. However, the doh has discovered that, due to an error in the information used to prepare guidance on care trusts, anyone who is eligible to join another statutory pension scheme is debarred under current regulations from membership of the local government pension scheme.

Until last week, the department of health believed that transferred workers would be able to remain part of the local government scheme as well as join the NHS scheme, provided care trusts were granted "admitted body" status under the Local Government Pension Scheme Regulations 1997.

"We are urgently consulting with the department for local government, transport and regions, therefore, about an amendment to regulation 6(1) which would allow care trusts to be able to apply for ‘admitted body’ status within six months of the 1 April starting date," said a doh spokesperson.

"We recognise that the change in guidance has caused concern for some local authority partners and their staff. Whilst the issue is resolved, therefore, we are encouraging any concerned sites to second staff rather than transfer them, allowing staff to remain in the local government pension scheme."

Owen Davies, national officer for social services for public sector union Unison, said the problem surrounding pensions was symptomatic of the speed with which care trusts were being set up in the absence of appropriate guidance.

"The fundamental issue for us is the indecent haste to get some care trusts set up by 1 April 2002," Davies added. "The sensible thing would be for the government to admit that no-one will be ready to go on a proper solid basis on 1 April."

Care trusts were created in last year’s Health and Social Care Act and the doh has since announced 16 demonstrator sites for launch this year, although only four are understood to be ready to go live this April.