3  Transfer payment from the Fund

3.1  The Authority shall use reasonable endeavours to ensure that the Administering Authority transfers from the Fund to the Contractor's Scheme on the Due Date an amount in respect of the relevant Transferring Members' service in the Fund before the Relevant Transfer Date calculated in accordance with the Actuary's Letter and the LGPS Regulations.

3.2  As soon as reasonably practicable following the Relevant Transfer Date, the Contractor shall (and shall procure that each relevant sub-contractor shall) promptly provide all data within its possession or under its control which the Administering Authority and the Administering Authority's Actuary may require for the calculation of the Transfer Amount and shall warrant that this data is in all material respects true, complete and accurate.

3.3  As soon as reasonably practicable following the Relevant Transfer Date, the Authority shall promptly provide all data within its possession or under its control which the Administering Authority and the Administering Authority's Actuary may require for the calculation of the Transfer Amount and shall warrant that this data is in all material respects true, complete and accurate.

3.4  The Authority shall use its reasonable endeavours to procure that:

3.4.1  as soon as reasonably practicable after the Administering Authority's Actuary has been provided with the necessary data and information, the Administering Authority's Actuary shall calculate the Transfer Amount in accordance with the Actuary's Letter and the LGPS Regulations; and

3.4.2  within [one week] of completing this calculation, the Administering Authority's Actuary shall notify the Contractor's Actuary in writing of the particulars of the calculation and the data on which the calculation is based.

The Contractor's Actuary will then have [one month] (or such longer period as the parties may agree) from the date on which those particulars and data have been supplied to him in which to object in writing that the calculation is incorrect or not in accordance with the Actuary's Letter. The calculation shall be final and binding on the parties if the Contractor's Actuary raises no objection within this stated period.

3.5  If the Contractor's Actuary objects in writing under paragraph 3.4 of this Schedule and the Administering Authority's Actuary and the Contractor's Actuary cannot subsequently agree the Transfer Amount within [one] month (or such longer period as shall be agreed between the parties) of the objection, then the amount shall be determined by an independent actuary to be nominated by the Administering Authority and the Contractor and/or relevant sub-contractor jointly or, if they cannot agree, by the President of the Institute of Actuaries on application by either party.  The independent actuary shall act as an expert and not as an arbitrator, and his decision shall be final and binding on the parties.  The independent actuary's costs shall be payable equally by the Administering Authority and the Contractor and/or relevant sub-contractor.

3.6  Payment to the Contractor's Scheme of the Transfer Amount shall only be made on the following conditions:6

3.6.1  the Transfer Amount has been agreed or determined under paragraph 3.4 or 3.5 of this Schedule and in accordance with the LGPS Regulations;

3.6.2  the HM Revenue & Customs has consented to the making of the payment (which consent the Authority and the Contractor and/or relevant sub-contractor shall use reasonable endeavours to obtain);

3.6.3  the Contractor and/or relevant sub-contractor has complied with all its obligations under this Schedule; and

3.6.4  the trustees of the Contractor's Scheme have confirmed in writing that:

(a)  a payment should be made in accordance with the LGPS Regulations and that they shall accept payment on the terms set out in paragraph 4 of this Schedule;

(b)  they shall accept liability for each Transferring Member's accrued contracted out rights under the Fund; and

(c)  they shall accept the Transfer Amount in full and final settlement of all claims against the Fund in respect of each Transferring Member.

3.7  [The payment of the Transfer Amount shall be satisfied by the transfer of readily marketable stocks and shares of the Fund as agreed by the Administering Authority and the trustees of the Contractor's Scheme having a mid-market value on the day before the Due Date equal to the Transfer Amount. If the Administering Authority and the trustees of the Contractor's Scheme are not able to agree some or all of the particular assets to be transferred, or the mid-market value of any such assets, the payment of the Transfer Amount (or the appropriate part of it) shall be satisfied by the Fund transferring cash equal to [  ]% of that part of the Transfer Amount in respect of which there has been no agreement as to the assets to be transferred.]7

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6 The Authority may wish to consider whether it wants to seek to ring-fence any Transfer Amount within the Contractor's Scheme.  The Authority should consult with its professional advisers regarding this option.  

7 The form of payment and discount for cash needs to be discussed with the Administering Authority.  If this is to be covered in the Actuary's Letter, this clause can be deleted.