Admission Agreement and Employer Management

Ref Regulation Description Avon Pension Fund Policy
13 R3(1A), R3(5) & RSch 2, Part 3, para 1 Whether to agree to an admission agreement with a body applying to be an admission body.

The Funding and Valuation Manager has discretion, after taking advice from the Fund’s actuary and legal advisor where required, to approve admission agreements with Admission Bodies where:

  • they meet the requirements of R-Sch2, Part3, para 1; and
  • a scheme employer provides a satisfactory guarantee to the APF.

A bond may be accepted if a suitable guarantor cannot be found. Only in exceptional cases would applications for admitted body status be referred to the Pension Committee.

 
14 R-Sch2, Part 3, para 14 Whether to backdate the effective date of an admission agreement. APF exercises the discretion to backdate admission agreements to prevent LGPS members from being disadvantaged. The Pension Committee agrees the use of this discretion.
15 R4(2)(b) Whether to agree to an admission agreement with a Care Trust, NHS Scheme employing authority or Care Quality Commission. Head of Pensions, after taking advice from the Fund’s actuary and legal advisor where required, has discretion to approve admission agreements with a Care Trust, NHS Scheme employing authority or Care Quality Commission provided there is an acceptable guarantee provided to the pension fund.
16 R-Sch 2, Part 3, para 9(d)

Whether to terminate an admission agreement in the event of:

  • insolvency, winding up or liquidation of the body.
  • breach by that body of its obligations under the admission agreement.
  • failure by that body to pay over sums due to the Fund
 The exercise of the right to terminate an admission agreement rest with the Head of Pensions with reference to the Regulations and the terms of admission agreement.
17 RSch 2, Part 3, para 12(a) Define what is meant by ‘employed in connection with’ Unless otherwise agreed with the outsourcing employer, the Pension Committee confirms the Funds definition of ‘Employed in connection with’ as meaning employed solely or mainly (i.e. at least 50% of their time) in the management or delivery of such services as are set out in the Contract.
18 R64(2A) Whether to suspend (by way of issuing a suspension notice), for up to 3 years, an employer’s obligation to pay an exit payment where the employer is again likely to have active members within the specified period of suspension. In accordance with the Pension Committee’s delegation of functions, the Funding and Valuation Manager, after taking advice from the Fund’s actuary where required, has the discretion to issue a suspension notice for up to three years when the conditions set out in the Regulations are met.
19 R64(2ZC) Determining the amount of any exit credit payable to an exiting employer having regard to the factors listed in the Regulations and the Fund actuary’s calculations and certificate. In accordance with the Pension Committee's delegation of functions, this is decided by the Funding and Valuation Manager after taking appropriate advice from the Fund’s actuary, subject to additional data checks where an exit credit is being paid out of the Fund and is more than £25,000.
20 R64(7A) Whether to enter into a deferred debt agreement with an exiting Scheme employer to defer their obligation to make an exit payment and continue to contribute to the Fund. In accordance with the Pension Committee's delegation of functions, this is decided by the Head of Pensions after taking appropriate advice from the Fund’s actuary.
21 R64A(1) Whether to obtain a revision of the rates and adjustments certificate showing any resulting changes to the contributions of a scheme employer or employers. In accordance with the Pension Committee's delegation of functions, this is decided by the Head of Pensions after taking appropriate advice from the Fund’s actuary.
22 R64B Whether to obtain a revision of the rates and adjustments certificate to show the proportion of the exit payment to be paid by the exiting scheme employer in each year after the exit date (a debt spreading arrangement). In accordance with the Pension Committee's delegation of functions, this is decided by the Head of Pensions after taking appropriate advice from the Fund’s actuary.
23 L89(3) A45(3) Outstanding employee contributions can be recovered as a simple debt or by deduction from benefits. APF resolves to treat such amounts as simple debts recovered via invoice for active members. However, for members entitled to the immediate payment of benefits, arrears will be recovered from benefits.
24 R 68 (2) TP Sch 2, para2(3) TL80 (5)

Whether to require any strain on Fund costs to be paid “up front” by the employer following: 

  • Redundancy / Efficiency retirement (R30(7)
  • Flexible retirement (any actuarial reduction waiver in whole or in part) (R30(6)
  • Voluntary early retirement (any actuarial reduction waiver in whole or in part) whether RO85 or on compassionate grounds. (R30(8)

APF will require strain costs to be paid upfront where a strain cost becomes due. If the terms of an admission agreement allow payment by instalments, then the conditions of the admission agreement will apply.

The employer will normally be invoiced in the month following the payment of benefits, for such costs. The Fund will require payment to be made within 21 days or interest of 1% above base rate will be added to the amount payable for the late payment.

In exceptional circumstances, and by agreement with the Fund’s actuary, strain costs can be set against an employer’s funding position by agreement with the Pensions Operations Manager.
25 R80(1)(b) TP22(1) TP23 Specify information to be supplied by employers to enable administering authority to discharge its functions. Employers are required to provide information to APF so that they may discharge their duties with respect to administration of the scheme in accordance with the Pensions Administration Strategy.
26 R69(1) Decide frequency of payments to be made over to Fund by employers and whether to make an admin charge for late receipt. The frequency of employer payments will be at least monthly. Monthly payments fall due on the 22nd following the month to which they relate. APF reserves the right to recharge any abnormal administration costs that it incurs as a result of the under-performance of employing bodies or their agents. Further guidance can be found within the APF Pensions Administration Strategy. 
27 R69(4) Decide form and frequency of information to accompany payments to the Fund. The scheme employer should complete an i-Connect submission before payments in accordance with the frequency stated above.
28 R70 & TP22(2) Whether to issue employer with notice to recover additional costs incurred as a result of the employer’s level of performance. APF have set out measures within the Pensions Administration Strategy with regards to specific areas for when employers will be issued with a penalty charge or fine. APF reserves the right to issue penalty charges or fines for additional administration incurred as a result of disproportionate work or an employer’s level of performance in areas not included in the Strategy. This will be reviewed on an individual case basis.
29 R71(1) Whether to charge interest on payments by employers which are overdue. Interest will be charged on late payments received from scheme employers, where the payment is overdue (with the due date determined in accordance with the relevant LGPS regulations). Interest will be calculated in line with those regulations. However, the Finance Manager, of Pensions & Investments may, following discussion with the Pensions Operations Manager determine that the charge should be waived. Such a waiver will generally only be considered where the amount of interest is regarded as de minimis.
30 R36(3) A56(2) L97(10) Approve medical advisors used by employers for ill health benefits, including early payment on grounds of ill health of a deferred benefit or a suspended Tier 3 ill health pension. Employers can choose an Independent Registered Medical Practitioner (IRMP) from the General Medical Council register providing they have a specialist qualification. APF will validate the qualification.