The Local Government Pension Scheme (Administration) Regulations 2008

Employees of non-Scheme employers: transferee admission bodies

6.—(1) Subject to the requirements of this regulation and regulation 7, an administering authority 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 a Scheme employer as a result of—

(i) the transfer of the service or assets by means of a contract or other arrangement,

(ii) a direction made under section 15 of the Local Government Act 1999(1), or

(iii) directions made under section 497A of the Education Act 1996(2),

(“a (2)(a) transferee admission body”); or

(b) a public service and is approved by the Secretary of State for the purposes of admission to the Scheme (“a (2)(b) transferee admission body”).

(3) In the case of an admission agreement with a (2)(a) transferee admission body, the Scheme employer, if it is not also the administering authority, must be a party to the admission agreement.

(4) An approval under paragraph (2)(b) may be subject to such conditions as the Secretary of State thinks fit and she may withdraw an approval at any time if such conditions are not met.

(5) An admission agreement with a transferee admission body shall require the Scheme employer, in the case of a (2)(a) transferee admission body, or the transferee admission body, in any other case, to 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.

(6) An assessment carried out by a (2)(b) transferee admission body shall be carried out to the satisfaction of the administering authority.

(7) The admission agreement shall further provide that, where the level of risk identified by the assessment is such as to require it, the transferee admission body shall enter into an indemnity or bond to meet the level of risk identified.

(8) The indemnity or bond must be with—

(a) a person who has permission under Part 4 of the Financial Services and Markets Act 2000(3) 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.

(9) An admission agreement with a transferee admission body shall make provision for the relevant matters set out in Schedule 3.

(10) This paragraph applies where a transferee admission body undertakes to meet the relevant requirements of this regulation and—

(a) in the case of a (2)(a) transferee admission body, the Scheme employer undertakes to meet the relevant requirements of this regulation; or

(b) in the case of a (2) (b) transferee admission body—

(i) the Secretary of State approves the body for admission to the Scheme, and

(ii) the conditions, if any, to which the approval is subject have been met.

(11) Where paragraph (10) applies—

(a) an administering authority must admit to the Scheme the eligible employees of the transferee admission body designated by that body; and

(b) where the administering authority does so, the terms on which it does so are the admission agreement for the purposes of these Regulations.

(12) 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 7(1), members of the Scheme.

(1)

1999 c.27.

(2)

1996 c.56. Section 497A was inserted by section 8 of the School Standards and Framework Act 1998 (c.31).

(3)

2000 c.8.