Information for New Employers
The admission procedure for new Employers will depend on what category they fall under.
Please note as of 1 April 09 a charging policy will apply for all admissions to cover actuarial and any legal costs. Further to this, please note that, particularly for admitted bodies, this has been a lengthy process in the past so we urge Employers to contact us as early as possible before the proposed admission to keep the process as straight forward as possible, as a number of steps need to be taken.
Scheduled Bodies
Scheduled Bodies have an automatic right to be in the LGPS and do not need to apply for admission, although they do need to make us aware of their creation. New Scheduled Bodies are typically Academies (Schools) while Unitary Authorities in Wiltshire, Police and Fire are already members of Wiltshire Pension Fund.
Once we are aware that a new Scheduled Body will join Wiltshire Pension Fund our actuary will need to calculate an Employers’ Contribution Rate and we will meet with the new Employer to make sure they are aware of their responsibilities and our procedures.
Resolution Bodies
In the Wiltshire Pension Fund, these are typically Parish, Town or City Council. A resolution Body has a right to allow certain, or all, employees to be members of the LGPS, and for them to become an Employer in the Fund, subject to them resolving one or more employees to become members. The resolution will determine the eligibility of new employees subject to it not contradicting the LGPS Regulations. Through consultation with our Actuary, we will determine an Employers’ Contribution rate and meet with the new Employer to make sure they are aware of their responsibilities and our procedures.
If a new town or parish council and you wish to resolve to join the Fund, please contact Andy Cunningham either by email: andrew.cunningham@wiltshire.gov.uk or call 01225 713612
Admitted Bodies
Admitted Bodies either become members as the result of an outsourcing or following an application to become a member. In both cases their admission is subject to them meeting the eligibility criteria and an Admission Agreement being signed by all relevant parties.
1. Community Admission Bodies (CAB)
These are typically charities or other public sector bodies and they have a “community of interest” with local government. These bodies have no automatic right of entry – they are required apply to the Fund for admittance.
Wiltshire County Council’s Chief Financial Officer has delegated responsibility for approval of admission agreements with Community Admission Bodies (regardless of the number of scheme entrants) where:
- they arise from transfers of existing LGPS scheme members (either in the Wiltshire Fund or another LGPS Fund); and
- the original scheme employer (or another local authority with a “community of interest”) provides a guarantee to the Wiltshire Pension Fund of equivalent security to that which would have been given under the Regulations had the admission been a Transferee Admission Body.
Applications from potential Community Admission Bodies which do not satisfy the terms above, but where the expected active membership within the Wiltshire Pension Fund at the date of admission would be at least 10 people, will be decided by the Wiltshire Pension Fund Committee assuming the applicant satisfactorily passes the risk assessment set out below:
For officers to bring a positive recommendation to the Wiltshire Pension Fund Committee, the risk assessment described below needs to yield sufficient satisfaction that the admission of the applicant would not bring significant additional risk to the Fund:
- Does the potential CAB have a guaranteed income stream over at least 5 years
sufficient to cover its projected expenditure after allowing for reasonably foreseeable risks (e.g.
such as higher than expected inflation)?
- Is the guaranteed income stream from a public body?
- If so, who is it?
If there is no guaranteed income stream over at least five years, is there is a local authority that would be prepared to act as a guarantor for the potential CAB?
- Does the organisation have a risk register (compulsory under the Charities SORP) and if so, does it suggest that the organisation understands and knows how to manage its risks? Are there any risks apparent that could impact upon its ability to meets its obligations under an Admission Agreement with Wiltshire Pension Fund?
A tripartite admission agreement must be signed by the admission body, the original scheme employer and Wiltshire Pension Fund for the admission to become active. This places legal obligations on all three parties, but responsibility for most risks falls on the admission body (investment risk, bond yield risk, inflation and pay award risk, longevity and regulatory risk, etc).
In certain circumstances, the original scheme employer may agree to give the Pension Fund a guarantee to make good the liabilities of the admission body in the event of its failure.
2. Transferee Admission Bodies (TAB)
These are typically private sector companies or charities. They will have taken on staff from a local authority as a result of an outsourcing of services and the transferring employees had a right to remain in the LGPS or a “broadly equivalent” scheme. These bodies have no automatic right of entry, they are required apply to the Fund to gain admittance.
Wiltshire County Council’s Chief Financial Officer has delegated responsibility for approval of all admission agreements with Transferee Admission Bodies.
A tripartite admission agreement must be signed by the admission body, the original scheme employer and Wiltshire Pension Fund for the admission to become active. This places legal obligations on all three parties, but responsibility for most risks falls on the admission body (investment risk, bond yield risk, inflation and pay award risk, longevity and regulatory risk, etc).
Under the LGPS Regulations, in all cases the original scheme employer must provide a guarantee to the Fund to make good the liabilities of the admission body in the event of its failure. In addition, the scheme employer will often require an insurance-type bond to protect it against certain liabilities (particularly the immediate retirement of over 50s, soon to be over 55s) in the event of the admission body’s failure.
Application for Admission to the Wiltshire Pension Fund
Any organisation wishing to discuss joining the Wiltshire Pension Fund is asked to contact the Employer Relationship Manager
Wiltshire Pension Fund, Wiltshire Council - Bythesea Road,Trowbridge, Wiltshire, BA14 8JJ.
© 2009 Wiltshire Pension Fund.