1. The Council to retain certain of the LGPS risks and liabilities relating to this re-procured contract, in accordance with the following apportionment of risk as between authority and contractor, namely:

(a)   Contractor enters the Fund on the basis of a fully funded scheme;

(b)   Contractor is responsible for paying the Employer’s Contribution Rate at 21.2% during the term of the contract;

(c)   Contractor is responsible for paying any actuarial strains within their control and directly arising from the workforce for example, ill health and redundancy costs, pay increases;

(d)   Council is responsible for paying any increase to the Employer’s Contribution rate required by the Fund during the term of this contract;

(e)   Council is responsible for meeting any deficit arising at the end of the contract which is caused by market related conditions or otherwise is not caused by the Contractor’s failure to meet its obligations to the Fund;

(f)    Council provides the Fund with any underwriting required to protect against the contractor’s insolvency risk and consequently the contractor does not have to provide a bond or other third party guarantee.

In the event that there are any costs arising from the decision (1) above, due to a direct demand from the Fund for payment by the Council, the service budget for this contract shall be required to fund those costs.