Interest on late payment of certain benefits
91.—(1) Where all or part of a pension or lump sum payment due under these Regulations (other than a payment due under regulation 19 (additional voluntary contributions)) is not paid within the relevant period after the due date, the Committee shall pay interest on the unpaid amount to the person to whom it is payable.
(2) The unpaid amount includes any increase due in accordance with regulation 98 (pension increases).
(3) The relevant period is—
(a)in the case of a survivor pension, the period ending one month after the date on which the Committee receives notification of the member’s death;
(b)in the case of any other pension, one year; or
(c)in the case of a lump sum payment, one month.
(4) The due date is—
(a)in the case of a pension, the date on which it becomes payable;
(b)in the case of a lump sum under regulation 34 (election for lump sum instead of pension) the benefit crystallisation event date;
(c)in the case of a death grant, the date on which the member dies or, where notification of death is received more than two years after the date of death, the date of notification; or
(d)in the case of a lump sum under regulation 35 (commutation and small pensions) the date of the commutation election or, if later, the nominated date within the meaning of paragraph 7(3) of Part 1 of Schedule 29 to the 2004 Finance Act.
(5) Interest payable under this regulation is calculated at one per cent above base rate on a day to day basis from the due date of payment and compounded with three-monthly rests.