Organisations that undertake the running of services outsourced by local authorities find themselves with employees who have all the skills and knowledge needed to do a great job from the start.
But as admitted bodies providing employees with access to the Local Government Pension Scheme (LGPS), many encounter unexpected liabilities that can prove costly.
Substantial scheme deficits and yearly hikes in contribution rates are a financial strain that few admitted bodies can ignore. And specific risks such as cessation debts and early retirement entitlements in redundancy programmes can come as an unpleasant surprise.
Even the most skilled finance directors can struggle with the complexities of Defined Benefit schemes. Without specialist knowledge, they may end up with more liabilities than they bargained for.