A resolution body can become an exiting employer if:
- the last active member leaves (this is the most common reason)
- if the employer ceases to exist as a body, or
- if the administering authority give 3 months written notice to terminate.
In these events the Kent Pension Fund (the Fund), 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 closure basis, or
- instalments with Kent County Council as the administering authority.
The 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 an 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.