Pension protection can be achieved by allowing transferring employees to remain as members of the Local Government Pension Scheme (LGPS), although 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 (the Fund) is a formal legal process that takes between 9 and 12 months and must be agreed by the Superannuation Fund Committee.
The Fund actuary fees and legal costs are recovered from the letting authority and/or the commercial company or charity (admission body) in accordance with the decision of the Superannuation Fund Committee.
The LGPS regulations (Admission bodies) detail which employers the Fund may enter into an admission agreement.
Fund actuary report
You will need a Fund actuary report to:
- confirm your employer contribution rate
- explain what you need to do
- detail how much it will cost.
Admission bodies also need to:
- complete a fund questionnaire (DOCX, 200.7 KB) and return it using the upload form
- complete a Bond as security for the Fund to cover the risk of underfunding, strain costs, unpaid contributions and expenses. The admission body must maintain the Bond during its time in the Fund.
The Fund will need to see an executed copy of the commercial contract between the employer and the letting authority at an early stage.
The Admission Agreement and Bond are prepared by the Fund’s solicitor. View further information about the required legal documents.
There are 3 parties to the Admission agreement and it can be open (if subsequent staff transfers are covered by the same commercial contract as the first staff transfer) or closed.
When an employer joins the Fund, they accept ongoing financial liabilities. View information about your financial responsibilities as an employer.