The Pension Protection Fund (Miscellaneous Amendments) Regulations (Northern Ireland) 2010

Amendment of the Pension Protection Fund (General and Miscellaneous Amendments) Regulations

5.  After regulation 19 of the Pension Protection Fund (General and Miscellaneous Amendments) Regulations (Northern Ireland) 2006(1) (collection of the pension protection levy by instalments) insert—

“Interest for late payment of the pension protection levy

19A.— (1) Subject to paragraph (2), interest is to be charged in the case of late payment of a pension protection levy.

(2) Interest, or any part of interest, is not to be charged where there is a waiver under—

(a) paragraph (7) in respect of that interest, or

(b) paragraph (8) in respect of that part of interest.

(3) There is late payment of a pension protection levy where that levy has not been paid within 28 days of the date on which the Board sends the notification under Article 164(3)(c) of the Order (calculation, collection and recovery of levies).

(4) The annual rate of interest to be charged is 5% higher than—

(a) the rate announced from time to time by the Monetary Policy Committee of the Bank of England(2) as the official dealing rate, being the rate at which that 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(3) (reserve powers) is in force, any equivalent rate determined by the Treasury under that section.

(5) Interest is to be calculated—

(a) on a daily basis;

(b) on the amount of the pension protection levy which has not been paid, and

(c) from the first day on which there is a late payment of the pension protection levy until the day on which that levy is paid.

(6) Where the interest to be charged includes a fraction of a penny, that fraction is to be ignored.

(7) The circumstances in which interest may be waived are where the Board is satisfied that—

(a) any of the circumstances specified in regulation 4 of the Pension Protection Fund (Waiver of Pension Protection Levy and Consequential Amendments) Regulations (Northern Ireland) 2007(4) (circumstances in which pension protection levy may be waived) apply;

(b) charging interest would not be conducive to the prudent management of the Board’s financial affairs, or

(c) it is reasonable not to charge interest.

(8) The circumstances in which any part of interest may be waived are where the Board is satisfied that—

(a) the circumstances mentioned in paragraph (7)(a) apply, or

(b) it is reasonable not to charge any part of interest.

(9) For the purposes of considering whether it is reasonable not to charge interest or any part of interest under paragraphs (7)(c) and (8)(b), the Board must have regard to such matters as the Board considers relevant including (where relevant) the following matters—

(a) the dates on which any payments of the pension protection levy are made;

(b) the dates on which any payments of the pension protection levy were made in previous years;

(c) any failure by the person or persons by or on behalf of whom the pension protection levy is payable to—

(i) reply to correspondence from the Board about interest or the pension protection levy, or

(ii) provide the Board with information it requests about interest or the pension protection levy, and

(d) any—

(i) review, reconsideration or reference to the PPF Ombudsman under Chapter 6 of Part III of the Order, or

(ii) appeal against any determination or direction of the PPF Ombudsman,

which has been brought by the person or persons by or on behalf of whom the pension protection levy is payable.”.

(1)

S.R. 2006 No. 155 to which there are amendments not relevant to these Regulations

(2)

The Monetary Policy Committee is established by section 13 of the Bank of England Act 1998 (c. 11)

(3)

1998 c. 11

(4)

S.R. 2007 No. 157