Default notice
156.—(1) This regulation applies if the scheme manager gives an independent provider a notice under regulation 36(4) (non-payment of contributions) in respect of contributions payable in connection with a qualifying contract.
(2) The scheme manager must—
(a)also give a copy of the notice to the commissioning party to the qualifying contract;
(b)at the same time as the notice under regulation 36(4), give the independent provider notice that continued non-payment of the contributions will result in termination of employing authority status with effect from the day following the end of the second month after the month for which the contributions are due.
(3) If, one month after the issue of a notice under paragraph (1), some or all of the contributions referred to in that paragraph remain unpaid, the scheme manager must—
(a)notify the commissioning party of the non-payment specifying—
(i)the period or periods for which contributions are outstanding; and
(ii)the amount or amounts outstanding; and
(b)request the commissioning party—
(i)to consider withholding from any payments it is due to make to the independent provider in relation to any qualifying contract, an amount equal to the amount of unpaid contributions; and
(ii)to pay that amount to the scheme manager.
(4) If the scheme manager receives an amount pursuant to paragraph (3)(b)(ii), the scheme manager must—
(a)give the commissioning party a written receipt for the payment;
(b)notify the independent provider in writing that a sum equal to the amount of the unpaid contributions has been—
(i)withheld pursuant to paragraph (3)(b)(i); and
(ii)paid to the scheme manager by the commissioning party pursuant to paragraph (3)(b)(ii).