The Teachers' Superannuation (Amendment) Regulations 1996

Amendment of principal Regulations

17.  After regulation 31 there shall be inserted the following regulation —

“Interest on late payment of certain benefits

E31A.— (1) Where all or any part of the benefits payable under this Part other than a pension payable under regulation E23 is not paid within one month of the due date the Secretary of State shall pay to the person to whom the benefit is payable interest on the amount remaining unpaid calculated at the appropriate rate on a day to day basis from the due date to the date of payment, and compounded with three-monthly rests.

(2) For the purposes of paragraph (1) the due date, where a benefit consists of a single payment, is —

(a) the date on which the person becomes entitled to the benefit, where the benefit consists of a single payment other than a death grant referred to in paragraph (b); or

(b) the day after the date on which the Secretary of State has become satisfied that the grant may be paid under regulation E19 or E20, where the benefit is a death grant payable under either of those regulations.

(3) For the purposes of paragraph (1) the due date, in a case where a benefit does not consist of a single payment, is —

(a) the material date referred to in regulation E31(8) in the case of the payment referred to in regulation E31(6); or

(b) the date referred to in regulation E31(4) in relation to each payment in the case of any other monthly payment.

(4) For the purposes of paragraph (1) “the appropriate rate”is one per cent above the base rate for the time being quoted by the reference banks or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of seven, is fourth in the sequence.

(5) In paragraph (4) “the reference banks”means the seven largest institutions for the time being which —

(a) are authorised by the Bank of England under the Banking Act 1987(1);

(b) are incorporated in and carrying on within the United Kingdom a deposit-taking business (as defined in section 6, but subject to any order under section 7 of that Act); and

(c) quote a base rate in sterling.”.

(1)

1987 c. 22.