The admission agreement may come to an end for a number of reasons:
- when the commercial contract ends
- when the last active scheme member leaves
- if the terms of the admission agreement are breached, or
- if the employer or administering authority give 3 months written notice to terminate.
In these events the Treasury and Investments team will be asked to produce a cessation report, the cost of which is usually recovered from the employer. An exit liability may be payable on a full cessation basis, or instalments of the full cessation basis including interest, as agreed with the administering authority.
Kent Pension Fund will not accept the exit payment being settled on anything other than the terms of regulation 64 of the 2013 regulations which for the avoidance of any doubt, does not allow for settlement on the ongoing basis.
The Local Government Pension Scheme regulations allow us to return a surplus to an exiting employer although before doing so, the Fund wishes to establish if there is any ‘risk sharing’ between the letting authority and the exiting employer. If the surplus is above £20,000, we will seek permission of the Superannuation Fund Committee before returning it.