News

Local authority staff transferred to a care trust could lose their right to remain in the local government pension scheme, Community Care has learned.

All local government workers transferred to a care trust - officially an NHS body - are entitled to join the NHS pension scheme. However, the Department of Health has discovered that, because of an error in preparing 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 thought 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 the Regions 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.

"While the issue is being resolved, we are encouraging the seconding of staff rather than transferring them, which allow staff to remain in the council 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.