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 other public body
• charities who are considered to have a ‘community of interest’ with a scheme employer. This means that the work done by the charity contributes 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 provided by a scheme employer.
• other bodies listed in part 3 of schedule 2 of the LGPS regulations and approved by the secretary of state.

Ending an admission agreement

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

• the last active member with the admission body leaving the LGPS
• the insolvency, winding up or liquidation of the admission body
• a serious or continued breach of the terms of the admission agreement that hasn’t be resolved to the satisfaction of the Fund.

Either party can also end the admission agreement by giving the appropriate period of notice as set out in the admission agreement.

Cessation policy

If an admission body’s admission agreement has ended, we’ll ask our actuary to carry out a valuation to work out if there’s a funding deficit or surplus at the date of exit.

Funding deficit

If there’s a funding deficit at exit. The Regulations, require the exiting employer to pay an exit payment to the Fund equal to the value of the deficit, unless other arrangements have been agreed between:

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

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

If immediate payment of the deficit is unaffordable, the admission body may be allowed to enter into an agreement with the Fund to spread the payments over an extended period or delay a full exit from the Fund. Our cessation policy provides information on the options available and the conditions that must be met for such an agreement to be put in place.

Funding surplus

If there’s a funding surplus at exit, the administering authority is required to decide the value of an exit credit (which may be nil) to be paid to the exiting employer. The decision is made at the discretion of the administering authority considering factors set out in the regulations and any other relevant factors.

Our cessations policy sets out our approach to making this decision, including the factors that will be considered when doing so.

More information

You can find out more information in the following documents. These are published under Employer policies on the Key documents page for your respective Pension Fund.

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