Regulation 6 Additional costs

After regulation 81 (payments by employing authorities to appropriate administering authorities) insert—

“Additional costs incurred by employing authority’s level of performance

81A.

(1)

This regulation applies where, in the opinion of the appropriate administering authority, they have incurred additional costs which should be recovered from an employing authority because of that employing authority’s level of performance in carrying out its functions under these Regulations.

(2)

The administering authority may give written notice to the employing authority stating—

(a)

the administering authority’s reasons for forming the opinion mentioned in paragraph (1);

(b)

the authority’s opinion that the employing authority’s contribution under regulation 81(1)(d) should include an amount specified in the notice in respect of the additional costs attributable to that authority’s level of performance;

(c)

the basis on which the specified amount is calculated; and

(d)

where the administering authority have prepared a pension administration strategy, the provisions of the strategy which are relevant to the decision to give the notice and to the matters in sub-paragraph (a), (b) or (c).

Payments by administering authorities

81B.

(1)

An administering authority must pay to the fund of which they are the administering authority their fair share of any contribution towards the cost of the administration of the fund in circumstances where they have required a contribution towards such cost from employing authorities as referred to in regulation 81(1)(d).

(2)

An administering authority must also pay any additional costs due to the fund which are incurred because of their level of performance in carrying out their functions under these Regulations.”.