The Public Service Pensions (Employer Cost Cap) Regulations 2014
Section 12 of the Public Service Pensions Act 2013 (“the Act”) requires defined benefits pension schemes to set a rate, expressed as a percentage of pensionable earnings of scheme members, to be used to measure changes in the cost of the scheme and in connected schemes (defined in that section as the ‘employer cost cap’). The employer cost cap is then used to help regulate and stabilise the costs of the defined benefits pension scheme.