Dull but potentially deadly aspects of TUPE - can anyone confirm
I heard a rumour which intrigued me and which I would like to post here - hopefully to get it confirmed or killed. I post it here as its related to BSF.
TUPE details are duller than very dull things from the cold and remote planet "Feffing Dull" So arm yourself with a string coffee and read on.
When a person is tuped across there is a value attached to their pension fund which is linked to the pension funds investments.
At the end of the contract they may be tuped back.
Now the suggestion is that the fund may in the meantime decreased in value. At this point the difference has to be made up by the contractor.
As the stock exchange is volatile ( BP one of the major cash sources to pension funds wont be paying out much in future) its likely this could be a huge amount per person.
Many of you will be tuped I guess - has anyone gone into the endgame and financial liability ?
The question to ask is I think
"In the event of transfering back to the LEA scheme forwhatever reason will any shortfall in the fund be made good by your employer. Do they have to funds to do this ?"
For schools thinking of going the Acadamy route this needs to be understood. As the academy may end up with a huge bill for making up the lost value of TUPED staff pension funds, if they ever revert to the LEA.