Local Government Pension Scheme Bonds
Under the Local Government Pension Scheme requirements, staff transferred from the employment of local authorities to private sector companies may choose to continue to belong to the Local Government pension scheme.
This type of guarantee protects the Local Authority from loss in the event that the private sector company defaults in payment of contributions to the pension fund.
Pension Deficit Bonds
These types of bonds provide security to the pension fund, in the event of sponsor insolvency or non compliance with an agreed deficit recovery plan.