Regulation 8 Employer cost capI1

United Kingdom

(1)

The employer cost cap for the scheme is 18.5% of pensionable earnings of members of this scheme.

(2)

If the cost of this scheme, calculated following a valuation in accordance with regulation 7, goes beyond the margin either side of the employer cost cap of this scheme specified in regulations under section 12(5)(a) of the Act, the Minister must take the steps set out in paragraph (3).

(3)

The Minister must consult such persons as appear to the Minister likely to be affected by any steps that are required to be taken to achieve the target cost for this scheme, with a view to reaching agreement on those steps, and–

(a)

if agreement can be reached on the steps to be taken, take action to implement those steps; or

(b)

if agreement cannot be reached on the steps to be taken, the percentage of the member’s pensionable earnings specified in regulation 43(4) or (4A) of the 2014 Regulations, as applied to this scheme, as the amount of earned pension for a scheme year, must be adjusted for pensionable earnings after the date of the adjustment, so that the target cost for this scheme is achieved.

(4)

In this regulation–

(a)

“cost of this scheme” means the costs of this scheme calculated following a valuation in accordance with regulation 7; and

(b)

“target cost for this scheme” means the target cost for this scheme specified in regulations under section 12(5)(b) of the Act.

Annotations

Commencement

I1: Reg. 8 in force at 1.4.2016, see reg. 1(2)