Admission bodies

Overview

Admission bodies are non-public sector bodies that provide public services, usually:

• private companies providing public services on behalf of a local authority or another public body
• charities who have a ‘community of interest’ with a scheme employer. These charities contribute to the aims and objectives of a public sector scheme employer. For example, a charity providing preventative services that stop children from entering the care system. Or a charity that provides services previously delivered by a scheme employer.
• other bodies listed in part 3 of schedule 2 of the LGPS regulations as approved by the Secretary of State.

Ending an admission agreement

Admission agreements for admission body contractors typically finish at the end of their contract. However, the following can also end an admission agreement:

• the last active member of the admission body leaves the LGPS
• the admission body becomes insolvent, winds up or undergoes liquidation
• a serious or continued breach of the terms of the admission agreement that remains unresolved to the satisfaction of the Fund.

Either party can also end the admission agreement by giving the appropriate notice period stated in the admission agreement.

Cessation policy

If an admission body’s admission agreement ends, we ask our actuary to conduct a valuation to work out if there’s a funding deficit or surplus on the exit date.

Funding deficit

If a funding deficit exists upon exit, the regulations require the exiting employer to pay an exit payment to the Fund, equaling the deficit’s value unless they arrange otherwise with:

• the admission body
• the administering authority
• any body providing a guarantee to the Fund.

If payment is needed, we normally ask the admission body to pay the full amount as a lump sum.

When immediate payment is unaffordable, the admission body may enter an agreement with the Fund to spread the payments over an extended period or delay a full exit. Our cessation policy outlines the options available and the conditions for such agreements.

Funding surplus

If a funding surplus exists upon exit, the administering authority calculates the exit credit’s value (which may be nil) to be paid to the exiting employer. The administering authority exercises discretion in  this decision, considering the regulations and any other relevant factors.

Our cessations policy details our approach to this decision, including the factors under consideration.

More information

For details visit Employer policies on the Key documents page for your respective Pension Fund. Specifically the following documents:

• Cessations policy
• Admissions and bulk transfers policy
• Funding strategy statement.