6.11 To further enhance the protection of transferees' pension rights in PFI, the Government announced the Fair Deal for Staff Pensions in June 1999. The Fair Deal applied to all projects directly controlled by Ministers - central Government departments and their agencies - and it was set forward as good practice, which the Government expected other public sector employers to follow. It covers all transferees from central Government departments and agencies, including those transferred as part of PFI projects, and is recommended for use by other parts of the public sector. In addition the Fair Deal applies to all subsequent transfers. It states that:
• staff who transfer from the public sector should continue to have access to a good quality occupational pension scheme, under which they can continue to earn pension benefits for future service; and
• staff should be given options for the handling of the accrued benefits that they have already earned.
6.12 A good quality occupational pension scheme is defined as one that is broadly comparable to the public sector pension scheme. The new pension scheme does not have to be identical to the scheme available before transfer, but must overall be materially at least as good as it. The Fair Deal also requires, going forward, that all PFI bids include a bulk transfer agreement, which details how the full value of transferees' past service pension rights will be credited.
6.13 For the first time the definition of "broad comparability" was published which actuaries would be expected to apply, ensuring complete transparency to staff and unions. The Fair Deal also:
• required there to be a nominated minister for each project involving a
compulsory transfer of staff to the private sector;
• pledged that in each case staff and trades unions would have the details of how the pensions protection was to be delivered, explained openly well in advance of the transfer; and
• required that no transfer would be conducted until there had been a reasonable time for the details to be studied and for questions to be asked and answered.
6.14 The Fair Deal sought to improve the transparency of the contracting-out process by setting out the principles that the Government will apply in its role as a contracting authority. These principles are:
• to treat staff fairly;
• to do so openly and transparently;
• to involve staff and their representatives fully in consultation about the process and its results; and
• to have clear accountability within the Government for the results.
6.15 In its 2000 document "Public Private Partnerships - The Government's Approach", the Government recognised the importance of protecting and valuing staff, setting out the importance of transparency and consultation, and required:
• "full effective and continuous communication where such transfer could take place in order that staff and recognised trade unions can be engaged throughout the process"; and
• "transparency during and after the procurement process, with commercial confidentiality only being accepted as justification for non disclosure where this would cause real harm to the legitimate commercial or legal interests of suppliers, contractors, the public sector client or any other party."