Part 1: Public Service Pension Schemes Chapter 4: General Section 93: Operation of employer cost cap in relation to 2016/17 valuation
Where a breach of the CCM has occurred, rectification must take place. This involves adjusting member benefits or contributions prospectively. Rectifications are determined through a process involving Scheme Advisory Boards established under s.7(1) of PSPA 2013 or s.7(1) of the PSPA NI 2014. There is a default rectification method in case agreement cannot be reached through that process. If the assessed cost is above the upper margin, known as a ceiling breach, then action is taken to reduce the value of benefits that will be accrued in the new scheme, and/or member contributions will be increased. Alternatively, if the assessed cost is below the lower margin, known as a floor breach, then the value of benefits that will be accrued in the new scheme will be increased, and/or member contributions will be decreased.
	Section 93 provides that ceiling breaches above the upper margin of the employer cost cap are not rectified at the 2016 valuations (or 2017 valuations for the Local Government Pension Scheme (Scotland)) to ensure that no benefit reductions take place as a result of the conclusion of the 2016 (and 2017) valuation process. Section 93 does not, however, prevent the rectification of any floor breaches that occur at the 2016 valuations (or 2017 valuations for the Local Government Pension Scheme (Scotland)) so any benefit improvements or cuts to member contributions that are due will be honoured.
	Subsections (1) and (2) remove the requirement to rectify a ceiling breach at the 2016/17 valuations of a public service pension scheme, including retrospectively, by removing the effect of Treasury regulations 4 made under s.12(5) of PSPA 2013. Accordingly, where the cost of a scheme goes above the ceiling, this section also removes the effect of Treasury regulations that specify a target cost.
	Subsection (3) clarifies that, in this section, "section 1 scheme" means a scheme under section 1 of PSPA 2013, "the employer cost cap", in relation to a section 1 scheme, has the same meaning as in section 12 of PSPA 2013, and any reference to a section 1 scheme’s "2016/17 valuation" is to the scheme’s valuation under section 11 of PSPA 2013 with an effective date in 2016 or 2017.
	Equivalent changes are made to PSPA NI 2014, save for the fact the relevant powers are conferred on Northern Ireland’s Department of Finance, not HM Treasury.
	Subsection (7) provides that the actuarial valuation with an effective date of 31 March 2016 that was signed on 18 December 2018 under regulation 123 of the Local Government Pension Scheme Regulations (Northern Ireland) 2014 (S.R. (N.I.) 2014 No. 188) is of no effect. Unlike the other public service pension schemes, the Northern Ireland Local Government Pension Scheme signed this valuation report before the Court of Appeal judgment was made and the cost control valuations were paused. In line with the Government decisions taken following that judgment and for consistency with other public service pension schemes, the Northern Ireland Local Government Pension Scheme is now preparing a valuation report that will supersede the report signed on 18 December 2018. Section 93(7) clarifies that the report signed on 18 December 2018 is therefore of no effect.