Cost control

Employer contributions in funded schemes
13
1
This section applies in relation to a scheme under section 1 which is a defined benefits scheme with a pension fund.
2
Scheme regulations must provide for the rate of employer contributions to be set at an appropriate level to ensure—
a
the solvency of the pension fund, and
b
the long-term cost-efficiency of the scheme, so far as relating to the pension fund.
3
For that purpose, scheme regulations must require actuarial valuations of the pension fund.
4
Where an actuarial valuation under subsection (3) has taken place, a person appointed by the responsible authority is to report on whether the following aims are achieved—
a
the valuation is in accordance with the scheme regulations;
b
the valuation has been carried out in a way which is not inconsistent with other valuations under subsection (3);
c
the rate of employer contributions is set as specified in subsection (2).
5
A report under subsection (4) must be published; and a copy must be sent to the scheme manager and (if different) the responsible authority.
6
If a report under subsection (4) states that, in the view of the person making the report, any of the aims in that subsection has not been achieved—
a
the report may recommend remedial steps;
b
the scheme manager must—
i
take such remedial steps as the scheme manager considers appropriate, and
ii
publish details of those steps and the reasons for taking them;
c
the responsible authority may—
i
require the scheme manager to report on progress in taking remedial steps;
ii
direct the scheme manager to take such remedial steps as the responsible authority considers appropriate.
7
The person appointed under subsection (4) must, in the view of the responsible authority, be appropriately qualified and must not be—
a
an employee of the responsible authority;
b
the scheme manager;
c
a scheme member; or
d
an employee of the Department of Finance and Personnel.
S. 13 in operation at 1.4.2015 by S.R. 2014/123, art. 6