30.9  Discretionary Benefits



30.9.1  Where the Contractor or a sub-contractor is an Admission Body the Contractor shall and/or shall procure that any relevant sub-contractor shall award benefits (where permitted) to the Eligible Employees under the Compensation Regulations and/or the LGPS in circumstances where the Eligible Employees would have received such benefits had they still been employed by the Authority; and

30.9.2  Where the Contractor and/or a sub-contractor is not an Admission Body, the Contractor shall and/or shall procure that any sub-contractor shall award benefits to the Eligible Employees which are identical to the benefits the Eligible Employees would have received under the Compensation Regulations and/or the LGPS in circumstances where the Eligible Employees would have received such benefits had they still been employed by the Authority.

30.9.3  Under clause 30.9.1 (Discretionary Benefits) and 30.9.2 (Discretionary Benefits), where such benefits are of a discretionary nature, they shall be awarded on the basis of the Authority's written policy in relation to such benefits at the time of the Relevant Transfer Date (which the Authority shall provide upon request). Where the payment of such benefits is not, for whatever reason, possible, the Contractor shall and/or shall procure that any sub-contractor shall compensate the Eligible Employees in a manner which is broadly comparable or equivalent in cash terms,236

and the Authority and the Contractor (and any relevant sub-contractor) agree that clause 2.2 (Third Party Rights) shall not apply to this clause 30.9 (Discretionary Benefits).237




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236 The Authority may wish to consider the extent it wishes to impose obligations on the Contractor or sub-contractors in respect of the discretionary benefits they may award under the Compensation Regulations and/or LGPS (in particular where employment is terminated by reason of redundancy or in the efficient use of the Authority's functions).  The suggested wording reflects the starting position for negotiation with the Contractor.

237 The Direction requires that so far as the terms of the Agreement relate to the securing of pension protection for an original transferring employee, such terms are enforceable by the employee.