This Admission Agreement is based upon admission under Paragraph 1(d(i of Part 3 of Schedule 2 of the Local Government Pension Scheme Regulations 2013. Where this is not the case your admission agreement will follow substantially the same format but with suitable amendments to reflect the appropriate provision under Paragraph 1 of Part 3 of Schedule 2. Clause 3 of this template Admission Agreement is a generic provision for a closed class of employees. It may be necessary to adjust the wording to reflect the specific requirements for your admission based upon information disclosed in and arising out of your application questionnaire. When you submit your application questionnaire you should clearly articulate the description of the persons that you wish to be eligible to be admitted under the Admission Agreement. DATED 201 THE KENT COUNTY COUNCIL (1 - and - [NAME OF SCHEME EMPLOYER] (2 - and - [NAME OF ADMISSION BODY] (3 LOCAL GOVERNMENT PENSION SCHEME ADMISSION AGREEMENT [Insert shorthand reference to assist easy identification of the project/service site etc.] (Revised April 2017 Ref: Draft No. Dated: Engrossment dated:
THIS AGREEMENT is dated [INSERT] and is made BETWEEN (1 THE KENT COUNTY COUNCIL of County Hall, Maidstone, Kent ME14 1XQ in its capacity as administrator of the Scheme (the Administering Authority ; (2 [INSERT] of [ADDRESS] (the Scheme Employer ; and (3 [INSERT, INC COMPANY DETAILS WHERE APPLICABLE] of [INSERT] (the Admission Body. WHEREAS (together the Parties. (A (B (C (D (E (F (G In these Recitals the Regulations means the Local Government Pension Scheme Regulations 2013. The Administering Authority is an administering authority within the meaning of the Regulations. [The Scheme Employer is the relevant Scheme employer by virtue of [insert]. The Admission Body is a body within Paragraph 1(d(i of Part 3 of Schedule 2 of the Regulations. With effect from and including [INSERT] the Admission Body will provide services in connection with the exercise of a function of the Scheme Employer as a result of the transfer of a service by means of a contract. The Admission Body has applied to the Administering Authority to admit certain employees of the Admission Body as members of the Scheme administered by the Administering Authority and to participate in the Fund. These terms and conditions of admission have been agreed so as to regulate the terms of admission of designated employees and constitutes an admission agreement under the Regulations. IT IS NOW AGREED AND DECLARED BY the parties to this Agreement as follows: 1. INTERPRETATION AND DEFINITIONS 1.1 In this Agreement: 1.1.1 the expressions shall have the same effect and meaning as in the Regulations (unless otherwise defined herein or the context otherwise requires. 1.1.2 reference to any statute or statutory provision includes a reference to that statute or statutory provision as from time to time amended, extended, re-enacted or consolidated and all statutory instruments or orders made pursuant to it; 1.1.3 words denoting the masculine gender include the feminine gender; 1.1.4 words in the singular include the plural and vice versa; 1
1.1.5 headings are for reference only and shall not inform the interpretation of the Agreement; 1.1.6 persons includes natural persons, corporate bodies, unincorporated associations and partnerships; 1.1.7 reference to a clause, sub-clause or to a schedule is to clause, sub-clause or to a schedule in and to this Agreement; 1.1.8 a reference to a regulation by number is (unless otherwise stated a reference to the Local Government Pension Scheme Regulations 2013. 1.2 In this Agreement the following the meanings and qualifications apply: active member Active Eligible Employee Admission Date Agreement Bond Contract Contract Tasks deferred member and deferred pensioner member is restricted to a person who is an active member admitted to the Fund under the terms of this Agreement. an employee listed as an Active Eligible Employee in Part A to schedule 2 and who was employed by [INSERT EMPLOYER] immediately before his transfer of employment to the Admission Body and was an active member of the Scheme participating in the Fund immediately before his transfer of employment to the Admission Body. the date of this Agreement or, if later, the date of the first Relevant Transfer from the Scheme Employer to the Admission Body arising under the Contract; this agreement; a bond with a firm or person specified in paragraph 7, Part 3 of Schedule 2 of the Regulations. initially in the form set out in Schedule 1 to this Agreement but in such form as the Administering Authority may from time to time prescribe on not less than 2 months notice; the contract dated [INSERT] made between [the Scheme Employer] and [the Admission Body]; but shall include that contract as extended in accordance with its terms or such contract entered into between [the Scheme Employer] and Admission Body as may succeed it provided that such successor contract commences immediately upon the cessation of its predecessor and relate to the provision of the same services as the contract dated [REPEAT DATE FROM ABOVE]. the tasks which are to be performed by the Admission Body under the Contract; is restricted to a deferred member and deferred pensioner member who had been admitted to the 2
Fund by virtue of this Agreement. Employed in Connection with the Contract Tasks Employee Eligible Employee Expiry Date Fund Fund Actuary member Non-Active Eligible Employee Regulations Relevant Transfer Relevant Transfer Date Scheme Secretary of State TUPE means employed by and working for the Admission Body for the purpose of performing the Contract Tasks for excess of 50% of his normal working hours. an employee of the Admission Body and employed and employment will be construed accordingly; a person listed in Schedule 2 and whose employment has transferred to the Admission Body. the date of expiry of the Contract by effluxion of time; the Kent County Council Superannuation Fund; an Actuary appointed by the Administering Authority; is restricted to a person who is a member who was admitted to the Fund by virtue of this Agreement. an employee listed as a Non-Active Eligible Employee in Part B to Schedule 2 and who was employed by [INSERT EMPLOYER] immediately before that employee s transfer of employment to the Admission Body, who was eligible to be a member of the Scheme but was not an active member at the time of transfer of his employment to the Admission Body. the Local Government Pension Scheme Regulations 2013 as amended or supplemented from time to time; a transfer of an Employee from [the Scheme Employer] to the Admission Body for the purpose of TUPE and in consequence of the Contract; the date of a Relevant Transfer; the Local Government Pension Scheme established by the Regulations on 1 April 2014; the Secretary of State for Communities & Local Government or such other Secretary of State as shall succeed him with responsibility for administering the Regulations; the Transfer of Undertakings (Protection of Employment Regulations 2006 (as amended from time to time implementing the Acquired Rights Directive 77/187 (as amended from time to time. Value of the Accrued means the value of the entitlement to benefits in 3
Benefits the Scheme accrued by the Eligible Employees before their Relevant Transfer Date relating to and/or determined by reference to their membership of the Scheme and/or the Local Government Pension Scheme established before 1 April 2014, and to any service credits awarded before the Relevant Transfer Date, calculated by the Fund Actuary; 1.3 Without prejudice to any statutory provisions as may apply, an obligation arising under this Admission Agreement and the Regulations shall apply to like effect in relation to any subsequent scheme into which active members become enrolled and as shall be introduced to replace the Scheme commencing 1 April 2014 under the Regulations. 2. REGULATIONS 2.1 The Regulations shall apply to this Agreement. 3. ELIGIBLE EMPLOYEES TO BE COVERED BY THIS AGREEMENT 3.1 Subject to the terms of this Agreement, the Administering Authority will admit the Eligible Employees to the Scheme so that they may participate in the Fund if so designated by the Admission Body and from such date as provided for below. 3.2 The Admission Body makes the following designations, but in each case subject to meeting the eligibility requirements of the Regulations and this Agreement: 3.2.1 all Eligible Employees are designated for active membership of the Scheme and each will, provided that their employment transfers to the Admission Body on the Admission Date, be admitted or, where they are already participating in the Fund, shall continue to participate in the Fund under the terms of this Admission Agreement, from the Admission Date. Where an Eligible Employee transfers to the Admission Body after the Admission Date, his or her date of admission shall be his Relevant Transfer Date; 3.2.2 Where a person appearing in Schedule 2 gives notice to the Admission Body that he does not wish to participate (or continue to participate as an active member, the Admission Body shall immediately notify the Administering Authority but such notification shall not prejudice his ability to re-join the Scheme and participate in the Fund at a later date and be admitted under the terms of this Admission Agreement. His date of later admission shall be the first day of the payment period falling next after the date on which the Admission Body notifies the Administering Authority in writing of the application. The Admission Body shall notify the Administering Authority and Scheme Employer within 5 working days of the date upon which it receives such an application. 3.3 Any person to whom regulation 3(4 applies shall, provided that they meet one or more of the requirements set out in regulations 4(a, (b or (c, be admitted at the date specified in that regulation. The Scheme Employer and Admission Body shall be responsible for notifying the Administering Authority not later than 5 working days after the date of this Agreement of any employee within Schedule 2 to whom regulation 3(4 applies; whether or not they have met any of the requirements set out in regulation 4(a, (b or (c, and if so on what date they met that requirement. 3.4 A person shall not qualify to be an active member under this Admission Agreement if he is not, or was but ceases to be, Employed in Connection with the Contract Tasks by the 4
Admission Body and benefits shall cease to accrue from the date that he ceased to be so employed. 4. CONTRIBUTIONS AND OTHER ADMISSION BODY OBLIGATIONS 4.1 The obligations to make payment under clause 4 of this Agreement are without prejudice to any right of the Administering Authority to make a demand under the terms of the Bond, or any successor bond, indemnity or guarantee/guarantor arrangement. 4.2 The Admission Body shall pay to the Administering Authority: 4.2.1 all such payments as may be due under the Regulations; 4.2.2 the amount certified by the Actuary as due under a rates and adjustments certificate as may be issued pursuant to the Regulations, and the Admission Body acknowledges that the amount due under any rates and adjustments certificate may be varied from time to time in circumstances including but not limited to regulations 62 and 64 and in the case of amounts due under the rates and adjustments certificate issued under regulation 62, payment shall be made within nineteen days of the end of the month to which the contributions relate; 4.2.3 any contributions deducted from the pay of, or received from, a person in relation to benefits under the Fund pursuant to his admission under this Agreement and, in the case of contributions deducted from pay, payment shall be made within nineteen days of the end of the month to which the contributions relate, and in the case of receipt of monies paid by a person to the Admission Body, within 19 days of receipt by the Admission Body; 4.2.4 in the case of an active member who has attained the age of 55 or over and is dismissed by reason of redundancy or business efficiency or whose employment is terminated by mutual consent on the ground of business efficiency, an amount to discharge the strain caused by the immediate payment of pension under regulation 30(7; 4.2.5 in the case of a member, not being an active member, who has not attained normal pension age but who has attained the age of 55 or over who elects to receive immediate payment of pension in relation to an employment if the member is not an employee in local government service in that employment, an amount to discharge the strain caused by such immediate payment of pension under regulation 30(5 including additional strain caused by the exercise of a discretion to pay the pension without reduction under regulation 30(8; 4.2.6 in the case of an active member who has attained the age of 55 or over who reduces working hours or grade of an employment and receives immediate payment of all or part of their benefit to which that member would be entitled in respect of that employment if that member were not an employee in local government service on the date the reduction in hours or grade, an amount to discharge the strain caused by such immediate payment of pension under regulation 30(6 including additional strain caused by the exercise of a discretion to pay the pension without reduction under regulation 30(8; 4.2.7 in the case of payment of pension to a person who was an active member and who takes early retirement under regulation 35, an amount to discharge the strain so caused; 5
4.2.8 in the case of a deferred member who receives a pension under regulation 38, an amount to discharge the strain so caused; 4.2.9 the cost of an award of additional pension under regulation 31; 4.2.10 a contribution towards the administration of the Fund under regulation 69(1(c to the extent that it is not paid for from the Fund; 4.2.11 the Administering Authority s legal and actuarial costs incurred in preparing this Admission Agreement and Bond and any amendments to them; 4.2.12 the costs of any actuarial reports, advice and valuations obtained for the purpose of administering the Admission Body s participation in the Scheme under this Agreement, computing strain costs and preparing rates and adjustments certificates and establishing and keeping under review the level of risk and amount of bond cover; 4.2.13 such additional costs as may arise by virtue of inadequacy in the Admission Body s level of performance in carrying out its functions and obligations under the Regulations and by virtue of any delay on its part in carrying out its obligation under this Agreement; 4.2.14 interest on late payments in accordance with the Regulations; 4.2.15 amounts due under Clause 4.5 and 4.6. 4.3 Any sums as are permitted to be charged to the Admission Body under the Regulations may be charged to the Admission Body under this Agreement. 4.4 Strain costs shall be calculated by, and shall be, as certified by the Fund Actuary. 4.5 The Admission Body undertakes to indemnify the Administering Authority and the Scheme Employer against any costs and liabilities which either of them may incur (whether directly or as a result of a loss or cost to the members of the Scheme arising out of or in connection with the non-payment by the Admission Body of any contributions due to the Fund under this Agreement or the Regulations; or any breach by the Admission Body of the Regulations or this Agreement; or any action taken or omitted to be taken by the Admission Body relating to the Eligible Employees and this Agreement and the Regulations. 4.6 Without prejudice to regulation 64, when this Agreement is terminated or the Admission Body becomes an exiting employer, the Administering Authority may obtain: 4.6.1 an actuarial valuation of the assets and liabilities of the Fund in respect of the Eligible Employees. The methodology and assumptions (including investment assumptions and actuarial bases on which the valuation is based will be set, at the relevant time, by the Fund Actuary. For the avoidance of doubt, any deficit revealed by the valuation, whether attributable to investment performance, change in actuarial assumptions or otherwise shall be paid by the Admission Body to the Fund ( Closure Deficit. 4.6.2 a revised rates and adjustments certificate showing the revised contributions due from the Admission Body in respect of the Closure Deficit. 4.7 Except to the extent that the Regulations or this Agreement expressly provide, or the parties otherwise agree in writing, all payments due to be paid by the Admission Body to 6
the Administering Authority under this Agreement shall be paid by the Admission Body within 28 days of service of a demand for payment. 4.8 Any discretion falling to be exercised by the Administering Authority under regulation 38(2 shall be made by it in its absolute discretion. 4.9 Notwithstanding the termination of this Agreement, and to the extent permitted by the Regulations, the Admission Body and Scheme Employer shall remain liable to the Administering Authority and shall pay to the Administering Authority the value of any strain occasioned to the Fund by the later exercise of discretion or making of a decision in relation to payments that may be made in relation to persons who had been admitted to Scheme and participated in the Fund pursuant this Agreement. 4.10 The initial and any subsequent contribution rate required to be paid under this Agreement by the Admission Body will be based on the Admission Body s own Eligible Employees (including all active members, deferred members, pensioners members and deferred pensioner members and will be assessed by the Fund Actuary assuming that the Value of the Accrued Benefits of the Eligible Employees are deemed to be 100 per cent funded as at the Relevant Transfer Date as determined by the Fund Actuary in accordance with the ongoing actuarial assumptions consistent with the most recent actuarial valuation of the Fund before that date (not 100% funded on an accounting basis i.e. IAS19, FRS 17, FRS102 or subsequent accounting standards. Subsequent contribution rates will take account of circumstances peculiar to the Admission Body as set out in regulation 62(7. Without prejudice to the generality of the foregoing, subsequent contribution rates will take into account the effect on the funding of Eligible Employees benefits (whether accrued before or after the Relevant Transfer Date of deviations in and/or from the actuarial assumptions including, for the avoidance of doubt, any difference between the return on the Fund s assets and the return assumed by the Fund Actuary (whether above or below that return and may also take into account circumstances which make it likely in the view of the Administering Authority that the Admission Body will become an exiting employer (as defined in regulation 64. 5. ADMISSION BODY S WARRANTIES AND OBLIGATIONS 5.1 The Admission Body warrants and agrees that it has the legal power to enter into the Contract and provide the Contract Tasks and it has the authority to enter into this Agreement. 5.2 The Admission Body undertakes that it will:- 5.2.1 observe and perform all its duties and obligations as if it was a Scheme employer under and in accordance with the Regulations; 5.2.2 comply with the Regulations; 5.2.3 provide to the Administering Authority on demand a copy of the Contract (which may be redacted to remove confidential price and similar confidential data although it must provide sufficient details to enable the Administering Authority to be satisfied that there is in place an executed and dated contract between the Admission Body and Scheme Employer; 5.2.4 within three months of the Admission Date publish a statement concerning the Admission Body s policy on the exercise of its discretionary functions in accordance with the requirements of the Regulations (including those under regulations 16(2e, 16(4(d, 30(6, 30(8, and 31. The Admission Body shall keep the policy under review and send a copy of any amended statement to the Administering Authority within one month of any amendment; 7
5.2.5 promptly distribute relevant information to the Eligible Employees about the Scheme and the Fund as may be directed by the Administering Authority; 5.2.6 promptly provide to the Administering Authority any documents and information which the Administering Authority may reasonably require for the purpose of carrying out its duties in respect of Eligible Employees pursuant to this Agreement and in complying with the Regulations; 5.2.7 maintain and keep up to date records relating to the Eligible Employees so as to enable the parties to properly and simply perform their duties under the Regulations and this Agreement; 5.2.8 adopt the practices and procedures relating to the operation of the Scheme and the Fund set out in the Regulations and in any employer's guide or other guidance notes, including web based information services, published by the Administering Authority and provided or notified to the Admission Body; 5.2.9 not do anything to prejudice the status of the Scheme as a registered scheme in accordance with Part 4 of the Finance Act 2004; 5.2.10 allow the Administering Authority, the Fund Actuary, auditors and other properly instructed persons to inspect and reconcile all records and information relating to the Eligible Employees as is relevant their admission to the Scheme pursuant to this Agreement; 5.2.11 immediately notify the Administering Authority in writing if an Eligible Employee who is an active member of the Scheme ceases to be Employed in Connection with the Contract Tasks; 5.2.12 within 14 days notify the Administering Authority in writing of any material change in the terms and conditions of employment which affect entitlement to benefits under the Scheme of Eligible Employees who are members of the Scheme and of any terminations of employment by virtue of redundancy or in the interests of business efficiency; 5.2.13 within 14 days notify the Administering Authority and the Scheme Employer on each occasion on which the Admission Body exercises a discretion under the Regulations and the manner in which it exercises that discretion; 5.2.14 promptly notify the Administering Authority and the Scheme Employer of any matter which may affect the Admission Body s participation in the Scheme; and 5.2.15 notify the Administering Authority and the Scheme Employer of any actual change in its status, including a take-over, reconstruction or amalgamation, insolvency, winding up, receivership or liquidation and a material change to the Admission Body s business or constitution; 5.2.16 give a minimum of 2 months notice to the Administering Authority and to the Scheme Employer of any proposed change in its status including any of the matters set out in sub-paragraph 5.2.15 above. 5.2.17 not less than three months before the Expiry Date, advise the Administering Authority as to whether in its understanding the Contract is likely to end, be extended in accordance with its terms, or re-let to the same or another provider. In the case of extension, the Admission Body shall provide to the Administering Authority a copy of the relevant documentary evidence of the 8
extension and in the case of a re-let to the Admission body, provide a copy of the new contract (in each case the evidence of extension or copy contract may be redacted to remove confidential price and similar confidential data although it must provide sufficient details to ensure that the Administering Authority may be satisfied that there is in place an extension or contract between the Admission Body and Scheme Employer for the Contract Tasks. 6. SCHEME EMPLOYER S WARRANTIES AND OBLIGATIONS 6.1 Any sums as are permitted to be charged to the Scheme Employer under the Regulations may be charged to the Scheme Employer under this Agreement. 6.2 The Scheme Employer shall be liable for and indemnify the Administering Authority and the Fund against any failure on the part of the Admission Body to comply with its obligations under this Agreement. 6.3 Where the Administering Authority has carried out an actuarial valuation described in Regulation 64(2, and it is not possible for any reason to obtain all or part of the exit payment due from the Admission Body, or from an insurer or any person providing an indemnity, bond or guarantee on behalf of that Admission Body, the Administering Authority may obtain a further revision of any rates and adjustment certificate for the Fund, showing the revised contributions due from the Scheme Employer and the Scheme Employer shall pay that amount to the Fund. 6.4 Where the Administering Authority has carried out an actuarial valuation described in Clause 4.6, and it is not possible for any reason to obtain all or part of the Closure Deficit due from the Admission Body, or from an insurer or any person providing an indemnity, bond or guarantee on behalf of that Admission Body, the Administering Authority may obtain a further revision of any rates and adjustment certificate for the Fund, showing the revised contributions due from the Scheme Employer and the Scheme Employer shall pay that amount to the Fund. 6.5 The Scheme Employer shall not less than three months before the Expiry Date advise the Administering Authority as to whether in its understanding the Contract is likely to end, be extended in accordance with its terms, or re-let to the same or another provider. In the case of extension, the Admission Body shall provide to the Administering Authority a copy of the relevant documentary evidence of the extension and in the case of a re-let to the Admission body, provide a copy of the new contract (in each case the evidence of extension or copy contract may be redacted to remove confidential price and similar confidential data although it must provide sufficient details to ensure that the Administering Authority may be satisfied that there is in place an extension or contract between the Admission Body and Scheme Employer for the Contract Tasks. 6.6 The Scheme Employer shall pay to the Administering Authority such additional costs as may arise by virtue of the Scheme Employer s level of performance in carrying out its functions under the Regulations and this Agreement. 6.7 Except to the extent that the Regulations or this Agreement expressly provide, or the Administering Authority and Scheme Employer otherwise agree in writing, all payments due under this Agreement shall be paid by the Scheme Employer within 28 days of service of a demand for payment. 7. TERMINATION 7.1 This Agreement may be terminated by the Administering Authority, the Admission Body or the Scheme Employer provided that the party seeking to terminate the Agreement gives to the other parties at least three months notice of termination in writing. 9
7.2 This Agreement shall terminate with immediate effect in the event that the Admission Body: 7.2.1 ceases to be such a body; or 7.2.2 no longer has an active member contributing to the Fund; or 7.2.3 no longer has an active member contributing to the Fund and being admitted under this Admission Agreement; 7.3 The Administering Authority may terminate this Agreement with immediate effect in the event of: 7.3.1 the insolvency, winding up or liquidation of the Admission Body; or 7.3.2 a material breach by the Admission Body of any of its obligations under this Agreement or the Regulations which has not been remedied within a reasonable time. The determination of what is a material breach shall be in the sole discretion of the Administering Authority; or 7.3.3 the continued admission of the Admission Body jeopardising the status of the Scheme as a registered scheme under Part 4 of the Finance Act 2004; or 7.3.4 a failure by the Admission Body to pay any sums due to the Fund within a reasonable period of time after receipt of a notice from the Administering Authority requiring it to do so; or 7.3.5 the failure of the Admission Body to maintain and/or renew or adjust the level of the Bond as required by the Administering Authority; or 7.3.6 the termination of the Contract; or 7.3.7 where the Services are provided in relation to a school, the conversion of the school to an academy. 7.4 When this Agreement terminates the Admission Body shall pay to the Administering Authority any costs which may be required by the Administering Authority in respect of the professional costs incurred by the Administering Authority in connection with establishing the existence and amount of any exit payment or Closure Deficit. 7.5 The termination of this Agreement shall not affect the rights or obligations of the parties in respect of any Eligible Employee who is or has been a member of the Scheme or the obligation of the Admission Body to satisfy any costs or liabilities consequent upon termination of this Agreement. 7.6 Upon termination of this Agreement, the Administering Authority shall immediately notify the affected members, the Secretary of State and HM Revenue & Customs. 8. BOND 8.1 The Admission Body is required to carry out, to the satisfaction of the Administering Authority and the Scheme Employer, an assessment, taking account of actuarial advice from an actuary (who shall be a Fellow of the Institute and Faculty of Actuaries, of the level of risk arising on premature termination of the provision of the service or assets by reason of insolvency, winding up or liquidation of the Admission Body and other risk as considered appropriate by the Administering Authority. Such an assessment has been carried out upon the instruction of the Administering Authority and produced to the 10
Admission Body and Scheme Employer and by the execution of this Agreement the Administering Authority, Scheme Employer and Admission Body each warrant that it is satisfied with the assessment. 8.2 Following that assessment the Administering Authority identified that the level of risk is such as to require that the Admission Body shall enter into a bond. 8.3 The Admission Body acknowledges that the terms of a bond required under this Agreement shall be in the form of the Bond. 8.4 The amount of the bond may be reviewed by the Administering Authority but generally it will so not more frequently than annually. 8.5 If as a result of a review of the level of bond cover the Administering Authority considers (in its sole discretion that the amount of the bond or its terms should be revised, then within 28 days of being notified of that decision the Admission Body will either enter into a new bond in those terms and to that amount, or procure that the bondsman issue an amendment to reflect the new amount and terms. The Admission Body shall ensure that there is no break at all in the bond coverage. 8.6 The Admission Body undertakes and warrants that it will maintain the provision of a bond until the Administering Authority has given notice in writing to the Admission Body that it is satisfied that it has discharged all its liabilities under this Admission Agreement and the Regulations and that a bond is no longer required to be maintained. 8.7 For the purpose of Clause 7 a failure to incept and maintain a bond shall be a material breach of this Agreement and a reasonable time for this circumstance is 14 days. 9. SET OFF 9.1 The Admission Body agrees that, without prejudice to any other rights of the Scheme Employer or the Administering Authority the Scheme Employer may set off against any payments due to it, an amount equal to any overdue employer and employee contribution and other payments (including interest due from the Admission Body under these Regulations. 9.2 In respect of any sum of money referred to in clause 9.1 that is recoverable by or payable to the Administering Authority, the Scheme Employer shall pay any sum deducted under clause 9.1 to the Administering Authority. 10. NOTICES 10.1 Save as provided for below, a notice to be served under this Agreement shall be deemed to have been served if sent by first class pre-paid post : 10.1.1 by the Administering Authority to the Admission Body at its registered address as recorded at Companies House on the day of despatch and shall be deemed served the second day after posting; and 10.1.2 by the Admission Body and Scheme Employer to the Administering Authority addressed to the Treasury and Investments Manager, The Kent Pension Fund, Kent County Council, Sessions House, ME14 1XQ or such other address as shall have been notified to those parties in writing, and shall be deemed served the third day after posting. 10.2 For convenience the parties may provide information demanded under this Agreement by email but that shall only be good service if the recipient expressly confirms by email 11
11. WAIVER or in writing that such a communication will be (if confirmed in advance of despatch or has been (if confirmed after despatch accepted in lieu of formal notice under clause 10.1. The obligation to effect good service falls upon the party giving notice and delay in receiving confirmation that email communication has been accepted, or refusal to provide such confirmation, shall not displace the obligation to effect formal notice under clause 10.1. 11.1 Failure or neglect by the Administering Authority or the Scheme Employer to enforce at any time any of the provisions hereof shall not be construed nor shall be deemed to be a waiver of the Administering Authority s or the Scheme Employer s rights hereunder (as the case may be nor in any way affect the validity of the whole or any part of this Agreement nor prejudice the Administering Authority s or the Scheme Employer s rights to take subsequent action 12. CONTRACTS (RIGHTS OF THIRD PARTIES ACT 1999 12.1 Save that the Administering Authority may enforce this Agreement on its own behalf and that of the Fund, the parties to this Agreement do not intend that any of its terms will be enforceable by virtue of the Contracts (Rights of Third Parties Act 1999 by any person not a party to it. 13. INSPECTION 13.1 This Agreement shall be available for public inspection at the offices of the Administering Authority at County Hall, Maidstone, Kent, ME14 1XQ and the Scheme Employer at [INSERT] and the parties to this Agreement consent to the disclosure of it for these purposes. Schedule 2 may be redacted in order to maintain the confidentiality of personal data. 13.2 Upon making this Agreement, the Administering Authority will promptly inform the Secretary of State of: 13.2.1 the date the Agreement takes effect, 13.2.2 the name of the Admission Body and 13.2.3 the name of the Scheme Employer. 14. AMENDMENT 14.1 This Agreement may be modified from time to time in such manner as the parties may all agree in writing, PROVIDED THAT: 14.1.1 such variation of the terms must be evidenced in writing and signed by all parties; and 14.1.2 no amendment may be made that would: (a (b breach the Regulations or any requirement of law as it applies to the Scheme; or prejudice the registered status of the Scheme as regards HM Revenue & Customs. 12
15. JURISDICTION 15.1 This Agreement shall be governed by the laws of England and the parties hereby submit to the exclusive jurisdiction of the English Courts. IN WITNESS whereof this Agreement has been duly executed as a deed. THE COMMON SEAL of THE KENT COUNTY COUNCIL (as the Administering Authority of The Kent County Council Superannuation Fund was hereunto affixed in the presence of: Authorised Signatory [INSERT RELEVANT PROVISON HERE] [INSERT RELEVANT PROVISON HERE] EXECUTED as a DEED and DELIVERED by [INSERT ADMISSION BODY DETAILS HERE] and signed by: Director Director/Secretary 13
SCHEDULE 1 DATED 20 THE KENT COUNTY COUNCIL (1 and [NAME OF ADMISSION BODY] 2 and [BONDSMAN] (3 BOND (Revised O - April 2017 1
THIS BOND is made the day of 20 BETWEEN THE KENT COUNTY COUNCIL of County Hall, Maidstone, Kent ME14 1XQ (the Administering Authority ; (1 [ADMISSION BODY], a [private limited company whose company number is [INSERT] and whose registered office is at [INSERT]] [OR AS THE CASE MAYBE] (the Admission Body ; and (2 [BONDSMAN], Incorporated in [INSERT] under registration number [INSERT] whose registered office is at [INSERT] and whose address for service for the purpose of this Bond is [INSERT] (the Bondsman and is executed and delivered pursuant to the provisions of the Local Government Pension Scheme Regulations 2013 as amended, consolidated or substituted from time to time (the Regulations. WHEREAS (A (B (C (D (E (F In this Bond words and expressions used shall unless defined herein or the contrary is stated bear the meaning set out in the Regulations or the Admission Agreement. Pursuant to a contract between the Admission Body and [INSERT] dated [INSERT] (the Contract, the Admission Body provides services in connection with a function of [INSERT], being a Scheme employer within the meaning of Schedule 1 to the Regulations (the "Services". The Administering Authority is an administering authority of the Local Government Pension Scheme (the Scheme within the meaning of the Regulations. The Admission Body and the Administering Authority have entered into an agreement (the Admission Agreement dated [INSERT], being an admission agreement for the purpose of the Regulations, to regulate the participation of designated employees in the Scheme subject to the provision of a bond in the form of this Bond. The Bondsman has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits or effect and carry out contracts of general insurance. The Bondsman has agreed with the Administering Authority at the request of the Admission Body to provide this Bond to the Administering Authority in the amount assessed by the Fund Actuary to secure the payment to the Administering Authority of contributions, any exit payment, Cessation Deficit and other sums due under the Admission Agreement, the Regulations or any later governing regulations from the Admission Body in respect of the persons admitted to the Fund under the Admission Agreement and their associated benefits under the Fund. NOW THIS DEED witnesses as follows:- 1. In this Bond: 1.1. Fund means the Kent County Council Superannuation Fund. 1.2. Fund Actuary means an actuary appointed from time to time by the Administering Authority. 2
1.3. the Regulations means the Local Government Pension Scheme Regulations 2013, as amended, consolidated or substituted from time to time. 1.4. a Relevant Event shall occur when the Admission Agreement terminates (for whatever reason and with or without notice, and the Admission Body shall fail to pay the Scheme Liabilities. 1.5. Scheme Liabilities shall mean the amount assessed by the Fund Actuary as representing the exit payment; other deficit or loss to the Fund; all other sums which are payable by the Admission Body and which arise from the admission of persons that participated in the Fund under the Admission Agreement and in each case whether they arise under the express provisions of the Admission Agreement, the Regulations or subsequent governing regulations. 2. This Bond is for the sum of: EITHER (for a bond with the rate set for first year, then continuing at year 1 rate until revised - [tba] ( [tba]; OR (for a bond set with rates for the first 3 years, then continuing at year 3 rate until revised - [tba] ( [tba] where the Relevant Event is before or on [end date]; - [tba] ( [tba] where the Relevant Event is on or between [start date year 2] and [end date year 2] inclusive, less any amount already paid; - [tba] ( [tba] where the Relevant Event is on or after [start date year 3], less any amount already paid. ( the Bond Limit 3. This Bond shall continue until the Bondsman is released from all liability under it in accordance with clause 7. 4. The Bondsman shall, following the occurrence of a Relevant Event and upon the Administering Authority making a demand and certifying that the amount demanded is due from the Admission Body pursuant to the Admission Agreement or the Regulations in respect of Scheme Liabilities, pay to the Administering Authority such sum or sums (not exceeding the Bond Limit as shall be demanded by the Administering Authority. 5. Any demand served by the Administering Authority pursuant to the terms of this Bond shall be in the form annexed as Appendix 1 and the Bondsman shall pay the sum so demanded within twenty one days of receipt of the same, in default of which, interest will be payable calculated at one per cent (1% above the Bank of England base rate on a day to day basis (the Prescribed Rate from the date payment is due from the Bondsman until payment is made by the Bondsman. 6. The maximum aggregate liability of the Bondsman under this Bond shall not exceed the Bond Limit. 7. This Bond shall expire and the obligations and liabilities of the Bondsman hereunder shall (save as to clause 17 cease and determine absolutely in these and only these circumstances: 3
7.1. on the day immediately following the day on which the Bondsman shall have paid to the Administering Authority a sum equal to the Bond Limit. 7.2. where a Relevant Event has occurred, the day immediately following the date on which the Administering Authority has issued to the Bondsman confirmation in writing that the Admission Body has discharged all its liabilities under the Admission Agreement, the Regulations and any later governing regulations. 7.3. if the Administering Authority shall discharge the Bondsman in writing from its liability, and in which case upon the date specified in that written notice. 8. All sums paid by the Bondsman under the terms of this Bond shall be held and wholly applied by the Administering Authority for the purpose of paying and discharging the Scheme Liabilities. The Administering Authority shall not be obliged to repay or release the same (or any part thereof not so applied as the case may be to the Bondsman or (if the Admission Body has repaid such sum to the Bondsman in full the Admission Body unless all Scheme Liabilities have been discharged in full following the Relevant Event. 9. Following any payment by the Bondsman under the terms of this Bond the Administering Authority shall provide to the Bondsman as soon as reasonably practicable an account in respect of the application of such sums and if any payment made by the Bondsman pursuant to such demand shall exceed the amount required to discharge the Scheme Liabilities, the Administering Authority shall refund such overpayment to the Bondsman together with interest at the Prescribed Rate from the date of payment by the Bondsman to the date of repayment. 10. The service of any claim or demand by the Administering Authority under the terms of this Bond shall not (subject only to the Bond Limit preclude the service of any other or further demand. 11. The obligations and liabilities of the Bondsman under this Bond shall not be reduced, discharged, impaired or affected by: 11.1. the giving of time or any other indulgence, forgiveness or forbearance by the Administering Authority; nor by 11.2. any amendment or variation of the Regulations or the Admission Agreement or the rules applicable to the administration thereof or the payment and calculation of benefits under the Scheme; nor by 11.3. the insolvency of the Admission Body or any disclaimer of its contracts and liabilities by a liquidator; nor by 11.4. in the case of an open admission agreement, the admission of additional employees to the Scheme. 12. Save as provided for at clause 13 below, no variation of this Bond shall have effect unless in writing duly executed by all the Parties. 13. Where the Fund Actuary revises the level of bond that the Administering Authority should require, the level of bond may be varied in writing by the Bondsman at the request of the Admission Body provided that notice of the variation is served on the Administering Authority, but no such variation shall be of effect unless it is in at least the amount prescribed by the Fund Actuary. For the avoidance of doubt no such variation may have the effect of modifying the termination provisions of the Bond. 14. Any demand under this Bond shall be in writing addressed to the Bondsman at its address for service as set out above or to such other address as the Bondsman shall advise to the 4
Administering Authority by not less than seven days prior notice in writing and shall be deemed to be served upon actual delivery to the Bondsman. 15. A person who is not a party to this Bond shall have no right under the Contracts (Rights of Third Parties Act 1999 to enforce any term of this Bond. This clause does not affect any right or remedy of any person which exists or is available otherwise than pursuant to that Act. 16. This Bond shall be governed by and construed in accordance with the laws of England and only the courts of England shall have jurisdiction in relation to it. 17. No claim shall be made under this Bond where the Relevant Event occurs on a date later than 20 years from the date of this Bond or where the claim under it is made more than 21 years from the date of this Bond. IN WITNESS whereof the parties have executed and delivered this Bond as a deed the date and year first before written THE COMMON SEAL of THE KENT COUNTY COUNCIL was hereunto affixed in the presence of: Authorised Signatory SIGNED AS A DEED by [ADMISSION BODY] acting by Director Director/Secretary INSERT PROVISIONS FOR BONDSMAN 5
APPENDIX 1 Form of Demand To: Re: Bond No. in the sum of From: The Kent County Council as an Administering Authority of the Local Government Pension Scheme Dear Sirs We refer to the bond, particulars of which are set out above ( Bond, and we certify that a Relevant Event has occurred in relation to the Admission Body [ ] in that:- [insert details of the relevant event, e.g. the making of a winding up order, etc] and that the sum set out below is properly due in respect of unpaid contributions and other payments due to the fund from the Admission Body as an employing authority ( Scheme Liabilities. Now therefore we hereby demand payment of the sum of [ ] pounds ( [ ] (not exceeding the Bond Limit set out in the Bond. The above amount should be paid to us [in discharge/partial discharge] of your obligations under the Bond by transfer to the following account: Account Name: KCC re: Kent Pension Fund Bank: NatWest, Maidstone Bank Address: 3, High Street, Maidstone, Kent ME14 1XU Account Number: 47065826 Sort Code: 60-60-08 The amount so transferred to us will be held and applied in accordance with the terms of the Bond for the discharge of the Scheme Liabilities and we confirm that if following a detailed calculation of the sums required to discharge Scheme Liabilities in accordance with the provisions of the Scheme, a surplus shall arise in relation to amounts paid by you, such surplus will be refunded together with interest at the rate prescribed in the Bond. We will as soon as practicable and in any event, not later than [ ] months from the date hereof render an account to you of such calculations (duly certified by the actuary appointed for such purpose and the use and application of all amounts so paid. Signed by..authorised Officer Duly authorised for and on behalf of Kent County Council the Administering Authority 6
SCHEDULE 2 The following is the pool of persons capable of being admitted to the Scheme under the terms of this Admission Agreement. Part A: Active Eligible Employees: DoB Gender Nino Etc. Part B: Non-Active Eligible Employees: DoB Gender Nino Etc. 7