Regulation 15 Reserve funds

The EII support payments administrator must, on the first calculation date and from time to time thereafter, determine an amount that it is to hold as a reserve fund, to be calculated in accordance with paragraph (2).

Subject to paragraphs (3) and (4), the reserve fund shall be an amount that is twice the amount that the EII support payments administrator reasonably considers is likely to be equal to the largest EII support payment total (within the meaning given in regulation 18(3)) that would occur in the following 12 months.

The amount of the reserve fund to be accumulated during the first month in respect of which paragraph (1) applies is 1/12th of the amount determined in accordance with paragraph (2).

The amount of the reserve fund to be accumulated in the months following the month referred to in paragraph (3) above, shall increase each month by 1/12th of the amount determined in accordance with paragraph (2), until the end of the 12th month.

Any funds collected under these Regulations that remain undisbursed at the end of any month shall be added to the reserve fund.