5.—(1) Subject to the requirements of this regulation and regulation 6 (admission agreements – further provisions), the Committee may make an admission agreement with any transferee admission body.
(2) A transferee admission body is a body, other than a community admission body, that is providing or will provide—
(a)a service or assets in connection with the exercise of a function of an employing authority as a result of the transfer of the service or assets by means of a contract or other arrangement; or
(b)a public service and which is approved by the Department for the purposes of admission to the Scheme.
(3) In the case of an admission agreement with a transferee admission body under paragraph (2)(a) the employing authority, if it is not also the Committee, must be a party to the admission agreement.
(4) Approval under paragraph (2)(b) may be subject to such conditions as the Department thinks fit and it may withdraw approval at any time if such conditions are not met.
(5) An admission agreement with a transferee admission body shall require that—
(a)in the case of a body under—
(i)paragraph (2)(a), the employing authority; or
(ii)paragraph (2)(b), the transferee admission body, to the satisfaction of the Committee,
shall carry out an assessment, taking account of actuarial advice, of the level of risk arising on premature termination of the provision of the service or assets by reason of the insolvency, winding up or liquidation of the transferee admission body; and
(b)where the level of risk identified by the assessment is such as to require it, the transferee admission body shall enter into an indemnity bond to meet the level of risk identified.
(6) The indemnity or bond must be with—
(a)a person who has permission under Part 4 of the Financial Services and Markets Act 2000(1) to accept deposits or to effect and carry out contracts of general insurance;
(b)an EEA firm of the kind mentioned in paragraph 5(b) and (d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits or to effect and carry out contracts of general insurance; or
(c)a person who does not require permission under that Act to accept deposits, by way of business, in the United Kingdom.
(7) An admission agreement with a transferee admission body shall make provision for the relevant matters set out in Schedule 2 (matters to be included in admission agreements with transferee admission bodies).
(8) This paragraph applies where a transferee admission body undertakes to meet the requirements of this regulation and—
(a)in the case of a body under paragraph (2)(a), the employing authority undertakes to meet the requirements of this regulation; or
(b)in the case of a body under paragraph (2)(b), the Department approves the body for admission to the Scheme and the conditions, if any, to which the approval is subject, have been met.
(9) Where paragraph (8) applies—
(a)the Committee must admit to the Scheme the eligible employees of the transferee admission body specified by the body; and
(b)where it does so, the terms on which it does so are the admission agreement for the purposes of these Regulations and the Benefits Regulations.
(10) Only those employees of the transferee admission body who are employed in connection with the provision of a service or assets mentioned in paragraph (2) are eligible to be designated, under regulation 6(1), members of the Scheme.