The recent case of Alemo-Herron and others -v- Parkwood Leisure Limited found that collective agreements in the UK must be static, and individuals should not benefit from any future changes to an agreement once they have left the position of employment it relates to.
Collective agreements are common in the public sector in the UK. Many public sector compensation agreements (which relate to early retirement arrangements in the event of redundancy, compulsory or voluntary early severance, or termination in the interests of efficiency) are covered under collectively agreed schemes.
However, in local government, redundancy or termination to improve efficiencies is covered under the Local Government Pension Scheme (Membership, Benefits and Contributions) Regulations 2007, rather than a separate compensation agreement.
The Local Government Pension Scheme (LGPS) Regulations are not collectively bargained. Consequently, the Alemo-Herron judgement does not apply to the LGPS.
Nevertheless, the judgements in Beckmann, Martin -v- South Bank University and the recent case of Procter & Gamble -v- Svenska Cellulosa Actiebolaget SVA, determined that any benefits under an occupational pension scheme which do not relate to old age, invalidity and survivors benefits do transfer under Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE).
Consequently, where staff are transferred out of local government employment, the early retirement benefits, which are payable under the LGPS in the event of redundancy or termination of employment, in the interests of efficiency are protected on a transfer under TUPE.
