The Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations (Northern Ireland) 1997

Payment of interest on late paid benefit

6.—(1) For the purposes of section 147A of the Act(1) (interest on late payment of benefit) the prescribed rate of interest shall be the base rate for the time being quoted by the reference banks.

(2) In paragraph (1)—

(a) “base rate” means the rate for the time being quoted by the reference banks as applicable to sterling deposits or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of four, is first in the sequence; and

(b) “reference banks” means the four largest institutions for the time being which—

(i) are authorised by the Bank of England under the Banking Act 1987(2);

(ii) are incorporated in and carrying on within the United Kingdom a deposit-taking business (as defined in section 6, but subject to any order under section 7 of that Act); and

(iii) quote a base rate applicable to sterling deposits.

(1)

Section 147A was inserted by Article 156 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22))

(2)

1987 c. 22