In the former case, the Regulations governing the Local Government Pension Scheme require the contractor to provide an indemnity or bond so that in the event of the contract being prematurely terminated, e.g., if the contractor became insolvent, the fund is protected from having to pick up any unfunded costs.In the case of an admission agreement between the pension fund and a housing association, if the association were to cease to exist, any unfunded pensions liabilities remaining would pass to its successor body, not to the local government fund.