ITEM PF15
PENSION FUND COMMITTEE – 20 FEBRUARY 2004ADMISSION AGREEMENTSReport by Head of Finance
Introduction
New Regulations - The LGPS (Amendment)(No 2) Regulations 2003
A body providing a not for profit public service, having a community of interest with a Scheme employer or is approved by the Secretary of State.
A body which receives contributions from a Scheme employer. Where contributions from one or more scheme employers total less than 50% of total money received then the Scheme employers providing the funding, have to agree to be guarantor for any liability these regulations impose on admission body. This is now to be part of the admission agreement.
It is from these two categories above, that Oxfordshire most commonly receive applications, but there are other categories. In the event of a future application under a different category the full definition will be provided to the Committee.
A body, not a Community Admission Body, providing a service for a Scheme employer, as a result of a transfer of service or assets, or as a result of a direction made under S 15 of Local Government Act 1999 or directions under s 497A of the Education Act 1996, or provides a public service approved by the Secretary of State for the purposes of admission to the Scheme.
For an admission to continue from these bodies, the scheme employer determines the level of risk it is prepared to accept and because of early termination of the contract due to insolvency or the winding up of the body. Where identified this risk must be covered by a bond or indemnity taken out by the transferee admission body with a provider approved under the regulations. The regulations now specify which body has to obtain the risk assessment and the guidance accompanying the regulation gives employers flexibility about the level of risk the new body will be expected to cover through the bond.
Issues arising from the amending Regulations
New Application Community Admission Charter Community Housing
Other Admitted Body Matters
RECOMMENDATIONS:
C
GRAY
Background papers: SI2003 No.3004 and Admission Agreements
Contact Officer: Sally Fox, Pensions Services Manager. Tel. 01865 816080
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