When the employer joins the Fund they accept ongoing LGPS financial responsibilities for the staff that are transferred to them. At the date of joining liabilities are calculated on an ongoing basis and assets of an equal value to the liabilities are notionally allocated to the new employer. The actuary will also calculate the employer contribution rate (%) on this ongoing basis.
Some employer responsibilities include:
- paying the employer contribution certified by the actuary, by 19th of the following month to which they relate
- paying over to the Fund employee contributions deducted from staff salaries, by 19th of the following month to which they relate
- maintaining the Bond at the level set by the actuary (Admission bodies only)
- funding the cost of benefits accruing post the transfer
- payment of early retirement strain costs and funding early retirement
- settlement of any exit liabilities
- actuary and legal fees as required.