Hi - the service provider can normally apply to become an 'admitted body' of the LGPS. My schools experience is a little rusty now, but my understanding is that the new organisation does have to do that (e.g. they can't just say that they won't provide that level of pension) if the pension they provide isn't as good and they should have considered the costs of that when making the decision whether to bid.

In reply to Teresa:

Hi Amanda

The service providers have little or no choice but to maintain same or at very least 'broadly similar' pension provision - eg

democracy.havering.gov.uk/.../Report - TUPE manual.pdf

Hi Amanda
Yes you will need to retain the LGPS and you do this by applying to your scheme administrator to become an admitted body. Your LA should be able to support and help this process and will be very much used to the process. It can take some time so you will need to factor this into the TUPE timeline and the transfer won't be able to take effect until this is in place. As part of the process you will have to get an Actuary Report which will assess the liabilities and assets for you as an employer and you will be told what your employer pension contribution will be based on the workforce you have within the scheme. It is likely that your rate could be more than what it currently is.
There is no broadly similar pension scheme on the market and the 'fair deal regulations' will apply - hence retaining the LGPS is the only way to comply.
Hope this helps