Interest on late payment of benefits
T10.—(1) Subject to paragraph (2) below, where the whole or any part of a qualifying payment under these Regulations is not paid by the end of the period of one month beginning with the due date, the Scottish Ministers must pay interest, calculated in accordance with paragraph (3) below, on the unpaid amount to the person to whom the qualifying payment should have been made.
(2) Interest under paragraph (1) above will not be payable where the Scottish Ministers are satisfied that the qualifying payment was not made on the due date by reason of some act or omission on the part of the member or other recipient of the qualifying payment.
(3) The interest referred to in paragraph (1) above will be calculated at the base rate on a day to day basis from the due date to the date of payment, and will be compounded with three-monthly rests.
(4) In this regulation—
“base rate” means the official Bank Rate for the time being quoted by the Bank of England;
“due date” means the later of, either, the applicable day described in sub-paragraph (a), and the day described in sub-paragraph (b), or the applicable day in sub-paragraph (aa) and the applicable day in sub-paragraph (b) (whichever is applicable)—
in the case of a lump sum under Part F above, the day immediately following the day of the member’s death, unless the lump sum falls to be paid to the member’s personal representative, in which case it means—
the day on which confirmation probate or letters of administration are produced to the Scottish Ministers; or
the day on which the Scottish Ministers are satisfied that the lump sum may be paid as provided in regulation F5(4),
whichever is the earlier;
in the case of a pension payable on a member’s death other than a pension payable under regulation F2 the day immediately following the day of this death;
in the case of a pension under regulation E12, the day on which the pension becomes payable in accordance with that regulation;
in the case of a refund of contributions, the day after that on which the Scottish Ministers receive from Revenue and Customs the information they require for the purposes of compliance with paragraphs (2) to (4) of regulation E15; and
in any other case, the day immediately following that of the member’s retirement from pensionable employment; and
in the case of an amount in respect of pension under regulation F2 (lump sum when member dies after pension becomes payable) that is payable to—
the member’s personal representatives, the date on which confirmation, probate or letters of administration were produced to the Scottish Ministers;
any person or body to whom the pension has been assigned by the member’s personal representatives, the date on which the notice under regulation F2(10) was received by the Scottish Ministers; and
any person or body other than those referred to in heads (i) and (ii), the day immediately following the day of the member’s death.
the first day on which the Scottish Ministers are in possession of all information (including information which the Scottish Ministers obtain in connection with a determination under regulation E4(3)) necessary to be able to calculate the value of the qualifying payment;
“qualifying payment” means any amount payable by way of a pension or lump sum, or by way of a refund of contributions, under these Regulations, and for these purposes—
any amount paid by way of an interim payment calculated by reference to an expected pension benefit award, pending final calculation of the full value of that benefit; or
any amount paid that increases the amount of an earlier payment due to—
a backdated or later increase in pensionable pay; or
the payment of an upper tier pension under regulation E3 in place of a lower tier pension being paid to a member following a determination by the Scottish Ministers under regulation E4(3),
will be treated as a separate qualifying payment;