The National Health Service Pension Scheme (Scotland) Regulations 2008

Interest on delayed payments

Interest on late payment of benefits and refunds of contributions

2.J.9—(1) This regulation applies if the whole or part of an amount to which this regulation applies is not paid by the end of the period of one month beginning with the due date.

(2) This regulation applies to any amount payable by way of a pension, lump sum or refund of contributions under the scheme (other than any amount due under regulation 2.C.5 (contributions by employing authorities) or 2.C.6 (contributions by employing authorities: members becoming entitled to pensions under regulation 2.D.11)) or interim award.

(3) The Scottish Ministers must pay interest on the unpaid amount to the person to whom it should have been paid unless the Scottish Ministers are satisfied that the unpaid amount was not paid on the due date because of some act or omission on the part of the member or other person to whom it should have been paid.

(4) The interest on the unpaid amount is calculated at the base rate on a day to day basis from the due date for the amount to the date of its payment and compounded with 3 monthly rests.

(5) For the purposes of this regulation, except where paragraph (6) applies, “due date”, in relation to an unpaid amount, means–

(a) in the case of an amount in respect of a pension or lump sum payable to a member under Chapter 2.D (members retirement benefits), the day immediately following that of the member’s retirement from pensionable employment;

(b) in the case of an amount in respect of a pension payable on a member’s death, the day after the date of death;

(c) in the case of an amount in respect of a lump sum under Chapter 2.E (death benefits) that is payable to the member’s personal representatives, the earlier of–

(i) the date on which confirmation of an executor nominate or dative was produced to the Scottish Ministers; and

(ii) the date on which the Scottish Ministers were satisfied that the lump sum may be paid as provided in regulation 2.E.21(9) (payment of lump sums on death);

(d) in the case of an amount in respect of any other lump sum under that Chapter, the day after the date of the member’s death; and

(e) in the case of an amount in respect of a refund of contributions, the day after that on which the Scottish Ministers received from the Commissioners of Her Majesty’s Revenue and Customs the information required for the purposes of calculating the amount to be subtracted under regulation 2.C.18(3) or (4) (repayment of contributions).

(6) If, on the date which, in accordance with paragraph (5), would have been the due date for an unpaid amount in respect of a pension, lump sum or refund of contributions, the Scottish Ministers were not in possession of all the information necessary for the calculation of the amount payable in respect of the pension, lump sum or refund, the due date for the unpaid amount is the first day on which the Scottish Ministers were in possession of that information.

(7) In this regulation, “interim award” means–

(a) any amount paid by way of an interim payment calculated by reference to an expected benefit under the scheme pending final calculation of the full value of that benefit; and

(b) any amount paid that increases the amount of an earlier payment due to a backdated or subsequent increase in pensionable pay.