6. [Exit Provisions]19
6.1 [Sub-hubco/Project Co] undertakes on its own behalf and on behalf of the Employer to the Authority (for the benefit of the Authority itself and for the Authority as agent and trustee for the benefit of its Pensionable Authority Employees)20 that on:
6.1.1 the expiry or termination of this Agreement (or of the relevant Sub-Contract); or
6.1.2 the employment of any Pensionable Authority Employee transferring to a new employer in accordance with the provisions of Clause 25 (TUPE and Employment Matters) (or otherwise),
[Sub-hubco/Project Co]shall procure that the Employer shall procure that the trustees of the Broadly Comparable Scheme offer bulk transfer terms in respect of the relevant Pensionable Authority Employees' service in the Broadly Comparable Scheme to the pension scheme of the Authority or any future Service Provider (or their sub-contractors) which are no less favourable (in the opinion of the Administering Authority's Actuary or an actuary appointed by the Authority) than the bulk transfer terms set out in the Actuary's Letter, subject to a reasonable adjustment in respect of market fluctuations since the date of the Actuary's Letter.
6.2 If the transfer payment paid by the trustees of the Broadly Comparable Scheme is less (in the opinion of the Administering Authority's Actuary or an actuary appointed by the Authority) than the transfer payment which would have been paid had paragraph 7.1 been complied with, the Employer shall pay to the Authority or any future Service Provider (or their sub-contractor) (as appropriate) (or as such person shall direct) the amount of the difference.21]
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19 The exit provisions aim to reflect as far as possible the exit requirements of HM Treasury Guidance 'A Fair Deal for Staff Pensions : Procurement of Bulk Transfer Agreements and Related Issues'. The Local Authority could consult with its professional advisers regarding these provisions and the Guidance and the requirements it wishes to impose.
20 HM Treasury have indicated that the exit provisions in HM Treasury Guidance 'A Fair Deal for Staff Pensions : Procurement of Bulk Transfer Agreements and Related Issues' may cover not only Transferring Members but also Pensionable Authority Employees who did not transfer their benefits from the LGPS under the initial bulk transfer but did join the Broadly Comparable Scheme for future service only. The Local Authority should consult with its professional advisers regarding the scope of the employees it wishes to protect under this paragraph.
21 HM Treasury Guidance 'A Fair Deal for Staff Pensions : Procurement of Bulk Transfer Agreements and Related Issues' provides that onward bulk transfer requirements can be imposed on the pension scheme and/or the sponsoring employer. The Local Authority will need to consider whether it wants to include a shortfall obligation of this type on the Employer.