The Occupational Pension Schemes (Early Leavers: Cash Transfer Sums and Contribution Refunds) Regulations (Northern Ireland) 2006

Increases of cash transfer sum and contribution refund

5.—(1) Subject to paragraph (2), if there is a failure by the trustees or managers of the scheme to comply with section 97AG(2) (duty to act within a reasonable period) in relation to the cash transfer sum, the cash transfer sum shall be increased by the amount, if any, by which the cash transfer sum as calculated in accordance with regulations 2 and 4 falls short of what it would have been had the cash transfer sum been calculated on the date on which the trustees or managers should have done what was needed to carry out the member’s requirement.

(2) If there is a failure by the trustees or managers of the scheme to comply with section 97AG(2) without reasonable excuse the cash transfer sum shall be increased by—

(a) interest on that sum calculated on a daily basis over the period from the date on which they received the member’s notice under section 97AD(2) (exercise of right under section 97AB) to the date on which they do what is needed to carry out that requirement, at an annual rate of one per cent above the Bank of England base rate, or

(b) the amount, if any, by which the cash transfer sum as calculated in accordance with regulations 2 and 4 falls short of what it would have been had the cash transfer sum been calculated on the date on which the trustees or managers should have done what was needed to carry out the member’s requirement,

whichever is the greater.

(3) If there is a failure by the trustees or managers of the scheme to comply with section 97AG(4) without reasonable excuse the contribution refund shall be increased by interest on that sum calculated on a daily basis over the period from the date on which they received the member’s notice under section 97AD(2) to the date on which they do what is needed to carry out the member’s requirement, at an annual rate of one per cent above the Bank of England base rate.

(4) In this regulation “Bank of England base rate” means—

(a) the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets, or

(b) where an order under section 19 of the Bank of England Act 1998(1) (Treasury’s reserve powers) is in force, any equivalent rate determined by the Treasury under that section.

(1)

1998 c. 11