The National Health Service Superannuation Scheme (2008 Section) (Scotland) Regulations 2013

Interest on delayed payments S

Interest on late payment of benefits and refunds of contributions S

2.J.10.—(1) This regulation applies if the whole or part of an amount to which this regulation applies is not paid by the end of the period of one month beginning with the due date.

(2) This regulation applies to any amount payable by way of a pension, lump sum or refund of contributions under this Section of the scheme (other than any amount due under regulation 2.C.5 (contributions by employing authorities: general) or 2.C.6 (contributions by employing authorities: early retirement on termination of employment) or interim or substitute award.

(3) The Scottish Ministers must pay interest on the amount of a pension, lump sum, refund of contributions or an interim or substitute award which is unpaid (“the unpaid amount”) to the person to whom it should have been paid unless the Scottish Ministers are satisfied that the unpaid amount was not paid on the due date because of some act or omission on the part of the member or other person to whom it should have been paid.

(4) The interest on the unpaid amount is calculated at the base rate on a day to day basis from the due date for the amount to the date of its payment and compounded with three monthly rests.

(5) In this regulation, except where paragraph (6) applies, “due date” in relation to an unpaid amount (other than an unpaid amount in respect of an interim or substitute award) means—

(a) in the case of an amount in respect of a pension or lump sum payable to a member under Chapter 2.D (members' retirement benefits) or a lump sum under regulation 2.K.12 (amount of pension and lump sum to be paid to a 2008 Section Optant), the day immediately following that of the member's retirement from pensionable employment;

(b) in the case of an amount in respect of a pension payable on a member's death, other than a pension payable under regulation 2.E.21 (pension payable when member dies on or after reaching age 75), the day after the date of death;

(c) in the case of an amount in respect of a lump sum under Chapter 2.E (death benefits) that is payable to the member's personal representatives, the earlier of—

(i) the date on which confirmation of an executor nominate or dative was produced to the Scottish Ministers; and

(ii) the date on which the Scottish Ministers were satisfied that the lump sum may be paid as provided in regulation 2.E.22(9) (payment of lump sums or pensions on death);

(d) in the case of an amount in respect of any other lump sum under that Chapter, the day after the date of the member's death;

(e) in the case of an amount in respect of a refund of contributions, the day after that on which the Scottish Ministers received from the Commissioners of Her Majesty's Revenue and Customs the information required for the purposes of calculating the amount to be subtracted under regulation 2.C.18(3) or (4) (repayment of contributions); and

(f) in the case of an amount in respect of a pension under regulation 2.E.21 that is payable to—

(i) the member's personal representatives, the date on which any document that is by law sufficient evidence of the grant of confirmation as executor of the member, was produced to the Scottish Ministers;

(ii) 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 2.E.22(10) was received by the Scottish Ministers; and

(iii) 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.

(6) The due date for an unpaid amount—

(a) referred to in paragraph (5) in respect of which the Scottish Ministers were not in possession of all the information necessary for the calculation of the amount of the pension, lump sum or refund of contributions referred to in that paragraph on the date which would, in accordance with paragraph (5), be the due date; and

(b) in respect of an interim or substitute award,

is the first day on which the Scottish Ministers are in possession of all the information necessary to calculate that pension, lump sum, refund of contributions or interim or substitute award.

(7) In this regulation, “interim or substitute award” means—

(a) any amount paid by way of an interim payment calculated by reference to an expected benefit under this Section of the scheme pending final calculation of the full value of that benefit;

(b) any amount paid that increases the amount of an earlier payment due to a backdated or subsequent increase in pensionable pay; and

(c) any amount paid that increases the amount of an earlier payment due to the payment of an upper tier ill health pension under regulation 2.D.8 (early retirement on ill health: active members and non-contributing members) paid to a member in substitution for a lower tier ill health pension under that regulation following a determination by the Scottish Ministers under regulation 2.D.9 (re-assessment of entitlement to an ill health pension).

[F1 Interest and administration charges: late paid contributions S

2.J.10A.— (1) For the purposes of this regulation, where an employing authority fails to pay, by the dates therein specified, contributions it is required to pay under any or all of regulations 2.C.1, 2.C.5, 2.C.6, 2.C.8, 2.C.10 and 2.C.11, there is a chargeable event.

(2) Where there is a chargeable event, the Scottish Ministers may determine what amount of contributions are unpaid having regard to—

(a) the amount of contributions historically paid at a chargeable event by that employing authority;

(b) any reasons or explanation provided by the employing authority for the change in the amount of contributions it has paid at such an event;

(c) any other factors that the Scottish Ministers consider relevant.

(3) Where there is a chargeable event, the employing authority is liable to pay standard rate interest on the amount of unpaid contributions constituting that event and an administration charge in respect of each such event.

(4) Where the Scottish Ministers become aware of a chargeable event, the Scottish Ministers must give the employing authority a written notice specifying—

(a) the date of the chargeable event;

(b) the amount of unpaid contributions determined under paragraph (2);

(c) the amount of interest at the standard rate payable in respect of that event;

(d) the amount of administration charge payable in respect of it;

(e) that payment of the amounts referred to in sub-paragraphs (c) and (d) is to be made within 1 month of the date of the notice and that failure to do so incurs further interest and administration charges.

(5) Any amount payable by way of interest or payable by way of an administration charge is to be paid as a single lump sum unless the Scottish Ministers consider the case to be exceptional and consider it appropriate for all, or part, of such an amount to be paid over a period and by a number of instalments determined by the Scottish Ministers.

(6) Where the Scottish Ministers consider the case to be exceptional, nothing in the preceding paragraphs prevents the Scottish Ministers from waiving all or any part of the amount of interest, or all or any administration charges, payable.

(7) The standard rate of interest is the Superannuation Contributions Adjusted for Past Experience discount rate set by the Treasury.

(8) The administration charge in respect of arrears relating to the Scheme Year 2014-2015 and subsequent years is £75.

(9) In any particular case the Scottish Ministers may direct that, for the purposes of this regulation, “employing authority” includes a successor, transmittee or assignee of an employing authority’s business or functions.]

Textual Amendments

F1 Reg. 2.J.10A inserted (with effect in accordance with reg. 1(2)(a) of the amending S.S.I.) by The National Health Service Superannuation Scheme (Scotland) (Miscellaneous Amendments) Regulations 2014 (S.S.I. 2014/154), regs. 1(2), 23