2.7 Contractor Scheme

2.7.1 The Contractor shall or shall procure that any relevant Sub-Contractor shall not later than the Relevant Transfer Date or the Cessation Date (as the case may be) nominate to the Authority in writing the occupational pension scheme or schemes which it proposes shall be "the Contractor Scheme" for the purposes of this clause 2.7. Such pension scheme or schemes must be:

(a) established within three (3) months prior to the Relevant Transfer Date or Cessation Date (as the case may be) and maintained until any payment to be made under Schedule [•] (Bulk Transfer Terms) is made;

(b) reasonably acceptable to the Authority (such acceptance not to be unreasonably withheld or delayed);

(d) certified by [the Government Actuary's Department] [an actuary nominated by the Authority in accordance with relevant guidance produced by the Government Actuary's Department] as providing benefits which are broadly comparable to those provided by the LGPS35;

2.7.2 The Contractor undertakes to the Authority (for the benefit of the Authority itself and for the Authority as agent and trustee for the benefit of the Eligible Employees) that it shall and shall procure that any relevant Sub-Contractor shall procure that:

(a) the Eligible Employees shall by [three (3)] months before the Relevant Transfer Date or the Cessation Date (as the case may be) be offered membership of the Contractor Scheme with effect from and including the Relevant Transfer Date or Cessation Date (as the case may be);

(b) the Contractor Scheme shall provide benefits in respect of the Eligible Employees' periods of service on and after the Relevant Transfer Date or Cessation Date (as the case may be) which [the Government Actuary's Department] [an actuary nominated by the Authority in accordance with relevant guidance produced by the Government Actuary's Department] shall certify to be broadly comparable to the benefits which the Eligible Employees would have been entitled to under the LGPS had they continued in membership of the LGPS;

(i) [3] months after the date on which the Eligible Employees are first able to join the Contractor Scheme; and

(ii) the date on which the Eligible Employee joins the Contractor Scheme,

the Contractor shall provide death benefits for and in respect of the Eligible Employees which are certified by [the Government Actuary's Department] [an actuary nominated by the Authority in accordance with relevant guidance produced by the Government Actuary's Department] as being broadly comparable to those that would otherwise have been provided in respect of those Eligible Employees by the LGPS;

(d) if the Contractor Scheme is terminated, a replacement pension scheme shall be provided with immediate effect for those Eligible Employees who are still employed by the Contractor or relevant Sub-Contractor. The replacement scheme must comply with this clause 2.7 (Contractor Scheme) as if it were the Contractor Scheme; and

(e) before the Relevant Transfer Date or Cessation Date (as the case may be) the trustees of the Contractor Scheme shall undertake by deed to the Authority and to the Administering Authority that they shall comply with the provisions of clauses 2.7.1(a) to (d) (Contractor Scheme), 2.8.1(a), 2.8.1(b) and 2.8.1(d) (Undertaking from the Contractor) and Schedule [•] (Bulk Transfer Terms).

2.7.3 Schedule [•] (Bulk Transfer Terms) shall apply in relation to the terms for bulk transfers from the LGPS to the Contractor's Scheme following the Relevant Transfer Date and any subsequent bulk transfers on termination or expiry of this Agreement.

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35 The Authority should note that certification by GAD does not take account of any benefits which are payable solely as a result of the member being declared redundant, either compulsorily or voluntarily, where those benefits exceed the normal benefits available to an individual who resigns from employment at the same time. Such benefits are payable under regulation 19 of the LGPS (Benefit, Membership and Contributions) Regulations 2007. The Authority may wish to consider whether it wants to include any express provisions about the continuation of such benefits in the Agreement, either through the Contractor's Scheme or by way of compensation. If so, the Authority should consult with its professional advisers about such provisions. If such benefits are contractual, it is likely they will pass under TUPE (where TUPE applies) as clarified by the decisions in Beckmann v Dynamco Whicheloe Macfarlane [2002] 64 PBLR and Martin v South Bank University [2003] 85 PBLR. Discretionary enhanced benefits payable under the Compensation Regulations are covered in Clause 2.9.