Implementing Security

Employers wishing to improve their categorisation can do so by implementing security. By implementing security employers will be able to move to category A or category B and benefit from lower contribution rates. 

Forms of security can include first charges on assets, bonds, escrow accounts and letters of assurance. The value of security will need to be equal to a proportion of the employer’s cessation deficit, agreed between the employer and the Fund. The Fund allows employers to combine different types of security in order to meet the desired level of cover.
An example questionnaire for employers looking to put in place a first charge can be found
here.