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PART 12Supplementary

CHAPTER 5General

Protections for the scheme in relation to employers of Fair Deal eligible persons

181.—(1) Where an employer of a Fair Deal eligible person increases the pensionable earnings of a member of this scheme employed by the employer in a way which the scheme manager has determined is one where the resulting costs to this scheme or any connected scheme are costs which should be paid by the employer, the employer must pay to this scheme on demand the amount of the increase in this or the connected scheme’s costs or liabilities resulting from the increase.

(2) Where a Fair Deal eligible person exercises a choice available to the person under this scheme which leads to an increase in the contributions that the person’s employer is required to pay under this scheme, the employer must pay to this scheme the amount of the increase in contributions.

(3) Where an employer of a Fair Deal eligible person has breached any of the provisions of this scheme or any provision of the Admission Agreement the employer must pay to this scheme on demand the sum, as determined by the scheme manager, which is required to compensate this scheme for—

(a)any increase in this scheme’s costs or liabilities resulting from the breach; and

(b)any resulting additional administration expenses incurred by or on behalf of this scheme.

(4) Where an employer of a Fair Deal eligible person has entered into a contractual agreement (whether in the Admission Agreement or otherwise) with the scheme manager or the Department to lodge a bond with the scheme, the scheme manager or Department may call on the bond in the circumstances provided for in the contractual agreement.

(5) Where a person has entered into an agreement (whether in the Admission Agreement or otherwise) to indemnify this scheme in respect of contributions and other payments due to this scheme from an employer of a Fair Deal eligible person, that person must pay to this scheme on demand by the scheme manager or the Department the sums due under the indemnity, in accordance with the provisions of the agreement.