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Overview

If you are outsourcing services and have a number of staff who will be subject to Transfer of Undertakings (Protection of Employment) regulations (TUPE), you will need to consider obligations regarding the affected employees’ pension rights. We recommend that you refer the affected employees to the TUPE Transfers – Implications for LGPS Members page for more information.

This will also apply to any schools moving away from the local authority and converting to an academy and/or joining a Multi-academy trust (MAT) or moving to another MAT. Please see LGPS arrangements for academies for more information.

The Process

Please do not submit any leaver forms as this will complicate the process – instead please complete the staff data capture spreadsheet with a list of the staff involved and send it together with our Admitted Body Application form to peninsulaemployers@devon.gov.uk.

We will use this information to inform the actuary, who will then produce a new employer report detailing the employer contribution rate and associated bond figure. In line with good practice the report will show the new employer starting 100% funded.

We recommend this report prior is obtained prior to a procurement exercise to ensure all parties are aware of the costs involved when becoming an LGPS admitted body.

We will use information within the report when we produce the associated admission agreement documents.

For those employers transferring a service or admitted bodies ceasing a contract, we will also require the TUPE transfer mid-year return spreadsheet to be completed for all active members involved in the transfer to ensure their CARE pension records are correct on the transfer date.

During the procurement exercise you may wish to share the guide for new employers with the interested contractors. This will help them understand the roles and responsibilities that come with being an employer within the Devon County Council or Somerset County Council Pension Funds.

Below are draft admission agreements for information:

At the end of the contract a cessation valuation will be completed and if there is a deficit we would expect the admitted body to cover repayment, likewise if overfunded a credit maybe paid to the admitted body. Information regarding this eg pass through arrangements, should be set out in the commercial agreement with the outsourcing Scheme Employer. It is not part of the admission agreement.          

If a Pass-Through Arrangement has been agreed, we would ask the outsourcing employer to inform Peninsula Pensions so we and the actuary can note this on our records

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