The employer cost cap for the Scheme is 17% of pensionable earnings of the Scheme.

Where the cost of the Scheme, calculated following a valuation in accordance with DFP directions under section 11 of the 2014 Act, is more than the margins specified in regulations made under section 12(5) of the 2014 Act (“the Cost Cap Regulations”) above or below the employer cost cap, the Department shall follow the procedures specified in paragraph (3) for reaching agreement with the Committee, employers and members (or representatives of employers and members) as to the steps required to achieve the target cost specified in the Cost Cap Regulations.

The procedure specified for the purpose of section 12(6)(a) of the 2014 Act is consultation for such period as the Department considers appropriate with the Advisory Board with a view to reaching agreement endorsed by all members of that Board.

If, following such consultation, agreement is not reached within 3 months of the end of the consultation period, the Department shall take steps to adjust the rate at which benefits accrue under regulation 25(4) or 25(5) (active member’s pension accounts) so that the target cost for the Scheme is achieved.