Citation and commencement _I1

1. These Regulations may be cited as the Public Service Pensions (Employer Cost Cap) Regulations 2014, and come into force on 1st April 2014.

Interpretation _I2

2. In these Regulations, a “relevant scheme” means a defined benefits scheme (and any connectedscheme) to which section 12 of the Public Service Pensions Act 2013 applies.

Specified margins _I3

3. The cost of the relevant scheme must remain within the following margins—

(a) an upper margin, being a rate of 2 percentage points above the employer cost cap of the scheme; and

(b) a lower margin, being a rate of 2 percentage points below the employer cost cap of the scheme.

Target cost _I4

4. For cases where the cost of a relevant scheme exceeds the upper margin set out in regulation 3, or falls below the lower margin set out in regulation 3, the target cost will be the same as the employer cost cap of the scheme.