An admitted body is an organisation such as a private contractor that applies to be admitted to the LGPS. This provides continued protection for transferring employees with access to the LGPS.
Pension protection can be achieved by allowing transferring employees to remain as members of the LGPS. However, some types of employer can still transfer their staff to a Broadly Equivalent alternative instead.
It is recommended that you receive your own legal advice before proceeding.
Admission to the Kent Pension Fund is a formal legal process that takes between 9 and 12 months. It must be agreed by the Fund.
Both legal and actuarial fees apply. They are recovered from the letting authority and/or the commercial company or charity (admission body).
The LGPS regulations (Admission bodies) detail which employers the Fund may enter into an admission agreement.
Fund actuary report
The Kent Pension Fund (the Fund) actuary will produce a report to confirm:
- the employer contribution rate expressed as a percentage of payroll, and
- the level of security required in the form of a bond or guarantee.
There is a fee for this report which is recoverable from the Scheme Employer (the organisation who lets the contract). For details of associated fees, please email kentpensionfundgovernance@kent.gov.uk
Action to take for the actuary report
To request an actuary report, complete the data capture for admitted body employer spreadsheet (XLSX, 54.2 KB) Please detail the employees involved on the spreadsheet.
Save the completed spreadsheet to your device. Submit the data capture spreadsheet to us. Use the uploading documents to the Treasury and Investments team online form (opens in a new window) to submit your spreadsheet.
Full details about how to complete the data capture spreadsheet can be found within the drop down fields on the spreadsheet.
Fund questionnaire (application to join the Fund)
The Fund questionnaire is required for all new admissions to the Fund. This is the application to join the Fund.
You must select the appropriate questionnaire to reflect the type of security you will offer the Fund.
You should decide at the outset if you are going to provide security to the Fund in the form of a bond or guarantee.
The Fund must also see the associated executed commercial contract (redacted if necessary) to support the answers provided in the questionnaire. Find out about the commercial contract
Action to take for the questionnaire
- Complete a fund questionnaire. Your actuary report gives you the information you need to complete the questions about security. Either complete a questionnaire including the provision of a bond (DOCX, 95.0 KB) OR complete a questionnaire including the provision of a guarantee (DOCX, 99.8 KB).
- Provide a copy of the associated executed commercial contract to the Fund (redacted if necessary) to support the answers provided in the questionnaire.
- Use the uploading documents to the Treasury and Investments team online form (opens in a new window) to send the questionnaire and executed commercial contract to us. Please ensure this is uploaded in its original Word formats. We need to add Fund comments.
Security
You must put in place and maintain a security in the form of a bond or guarantee during the time in the Fund. This covers the risk of underfunding, strain costs, unpaid contributions, and expenses. Find out about types of security
Please ensure you engage in early conversations to determine what security will be provided.
Decisions about admissions to the Fund
The Head of Pensions and Treasury makes decisions about admission to the Kent Pension Fund on behalf of the Kent Pension Fund Committee.
All documents are reviewed by the Fund solicitor before a decision is made by the Head of Pensions and Treasury.
Admission agreement and bond
The admission agreement and bond are prepared by the Fund’s solicitor. Find out about the required legal documents
There are 3 parties to the admission agreement. It can be open (if subsequent employee transfers are covered by the same commercial contract as the first employee transfer) or closed. Find out about the admission agreement
There is a legal fee for the preparation of the admission agreement which is recoverable from the letting authority and/or the commercial company or charity (admission body). For details of associated fees, please email kentpensionfundgovernance@kent.gov.uk
You will tell us who is responsible for the fees in your completed questionnaire.
Once the admission agreement has been executed by both parties to the commercial contract, and the associated security is in place, Kent County Council (as Administrating Authority of the Kent Pension Fund) will affix its seal to the documents.
At this point, the matter is legally completed. The Fund will write to the new admitted body employer with instructions about how to pay member and employer contributions. The Fund cannot accept contributions until the matter is legally complete.
Additional action to take
Employees not in the LGPS at the date of conversion must be brought into the LGPS by the new employer on the day of the transfer. They can then opt out if they wish, although they must not be pressured into doing so. Find out about members opting out
The exception are employees with a contract of employment of less than 3 months who are not automatically brought into the LGPS. If they wish to join the LGPS, they can opt in. Find out about joining and automatic enrolment
Employees that are age 75 or older are not entitled to be in the LGPS.
Financial responsibilities
When an employer joins the Fund, they accept ongoing financial liabilities. Find out what your financial responsibilities are as an employer