Bulk Transfer Provisions

3.33  Appendix 2 Part B contains bulk transfer terms which should be complied with when undertaking any bulk transfer from LGPS to the Contractor Scheme and on any subsequent bulk transfers. In summary, the provisions provide that:-

3.33.1  each employee is invited to and may accept (within 3 months) the transfer of his benefits from LGPS to the Contractor Scheme. The invitation must be in a form acceptable to the Authority and Administering Authority;

3.33.2  the Authority must ensure the Administering Authority transfers from LGPS to the Contractor's Scheme an amount equal to the entitlement of the employees who have agreed to the transfer;

3.33.3  the Contractor (and Sub-Contractor if relevant) must provide all data within its control or possession which the Administering Authority or its actuary require to calculate the amount to be transferred in respect of transferring employees and the Authority is required to do likewise. The Contractor and Authority must warrant such information as accurate, and complete;

3.33.4  the Authority must ensure the Administering Authority's actuary calculates the amount to be transferred (according to LGPS Regulations) and communicates such information to the Contractor's actuary who has 1 month to object if the calculation is incorrect. If no objection is issued the calculation is final and binding. If there is an objection and they cannot agree the amount, an independent actuary (jointly appointed) must determine the agreed transfer amount.

3.33.5  the agreed transfer amount can only be paid into the Contractor's Scheme if the Contractor has complied with its obligations, the trustees of the Contractor Scheme accept liability for each transferring employee's accrued contracted out rights under LGPS, and the amount is in full and final settlement of all claims against the LGPS and in respect of each transferring employee;

3.33.6  the Contractor must ensure the Contractor's Scheme provides benefits for each transferring employee which are certified as actuarially equivalent to the benefits they would have received had they remained within LGPS;

3.33.7  the Authority must ensure the assets representing each transferring employee's additional voluntary contributions in the LGPS fund or benefits secured by them are transferred to the Contractor's Scheme;

3.33.8  the Contractor confirms it will not seek to require the LGPS has to pay any amount which is greater than the amount due in respect of each transferring employee;

3.33.9  on contract expiry or termination the Contractor shall ensure the trustees of the Contractor Scheme agree to offer bulk transfer terms which are no less favourable (in the opinion of the Authority's actuary or Administering Authority's actuary) than the terms specified by the actuary in respect of a subsequent transfer to a new Contractor Scheme or back into LGPS; and

3.33.10  the Contractor will bear any costs of the Authority incurred in connection with the bulk transfer.