1 December 2003

Dear Sir/Madam

I enclose a copy of regulations made under sections 7 and 12 of the Superannuation Act 1972, which amended those provisions, mainly in current regulation 5, concerning the capacity for non-local government bodies to enter into admission agreements.

Also enclosed, as an annex to this letter, is a Departmental guidance note replacing the one issued in February 2000 following the introduction of SI 1999/3438, which allowed private contractors involved with the contracting out of local government employer services and functions to provide ongoing access to the LGPS for transferring staff.

In replacing regulation 5 with new 5, 5A and 5B the new provisions actually simplify the structure and avoid overly complex cross-referencing which makes the current provision harder to follow. The main change, contained in regulation 5A, concerns the need for a risk assessment linked to the need to provide indemnification in the event of a contractor’s commercial failure.

Any queries regarding these changes or in connection with the guidance should be addressed in the first instance to Paul Kirk, Local Government Pensions Division, ODPM, Zone 2F/8, Ashdown House, 123 Victoria Street, London SW1E 6DE (telephone 020 7944 6014, e-mail [email protected].)

Yours faithfully

County Councils (England)

District Councils (England)

County and County Borough Councils in Wales

London Borough Councils

South Yorkshire Pensions Authority

Tameside Metropolitan Borough Council

Wirral Metropolitan Borough Council

Bradford Metropolitan City Council

South Tyneside Metropolitan Borough Council

Wolverhampton City Council

London Pensions Fund Authority

Environment Agency

Town Clerk, City of London Corporation

Clerk, South Yorkshire PTA

Clerk, West Midlands PTA

Local Government Association

LGPC

SOCPO

SOLACE

ALACE

CIPFA

New Towns Pension Fund

Trades Union Congress

UNISON

TGWU

GMB

Audit Commission

ACA

UCEA

GAD

DOE (NI)

SPPA