In this section you’ll find information for employers outsourcing a service or function to an external provider and those external organisations receiving a transfer of LGPS-eligible staff. It includes details on;
There’s also our initial admission body notification form so we can be notified of a prospective admission body or a TUPE of LGPS-eligible staff.
Transferee Admission Bodies (TAB)
Most LGPS admission bodies are Transferee Admission Bodies. These are organisations that have applied to become an LGPS employer, due to receiving a transfer of staff by TUPE who provide a service or function and were previously employed by a local authority, academy trust or a different LGPS employer.
Under LGPS regulations, the employer letting the contract or outsourcing the service, is ultimately liable for any unpaid deficit in the funding position of the admission body when it ceases participation in the Pension Fund. For example, this may arise where an admission body with a stand-alone agreement, becomes insolvent and, enters administration and the Pension Fund is unable to recover an outstanding deficit through a Bond or other form of funding security.
Community Admission Bodies (CAB)
Community Admission Bodies can participate in the LGPS where they satisfy the relevant requirements of the LGPS Regulations and have a community of interest with a scheme employer. A community of interest exists where an admission body’s operations are dependent on an LGPS employer, or vice versa. Examples are charities and community interest companies that provide a service on behalf of, or previously undertaken by, a local authority and receive funding to do so. Before the Fund will admit a CAB as an LGPS employer, the scheme employer it has a community of interest with, must formally agree to act as guarantor in respect of the CAB’s LGPS liabilities. This can be through a pass-through arrangement or a bespoke Guarantor agreement.
Open or closed basis
The admission of a TAB or CAB into the LGPS can be as an ‘open’ or ‘closed’ employer.
An ‘open’ admission body in the LGPS would continue to admit new employees into the scheme, meaning both existing and future eligible staff can become active LGPS members.
A ‘closed’ admission body no longer admits new employees to the LGPS. Existing active members who transferred into the admission body may remain in the scheme while they continue in eligible employment.
Most admission bodies operate on a closed basis, meaning participation in the scheme is generally limited to the period during which transferred employees remain in active membership.
Costs
New admission bodies have to meet all of the external costs incurred by us in processing the admission. If they do not have a pass-through arrangement in place, they must also be prepared for a higher employer contribution rate than that paid by the letting employer and the requirement to provide a bond.