PART 8

Payment of benefits
CHAPTER 5

Miscellaneous

Recovery of overpayment of benefits
177
1
This regulation applies in respect of a financial year for which a decrease in prices is specified in the order made by the Department of Finance and Personnel.
2
The Department may recover any overpayment of benefits that occurs as a result of the application of the leaver index adjustment for that year.

Interest on late payment of benefits
178
1
This regulation applies to a benefit except—
a
a phased retirement pension or a lump sum payable under regulation 168 in place of part of that pension; or
b
a total incapacity pension payable between the date on which the person to whom it is paid first engages in any other form of work as mentioned in regulation 118(2)(c) and the date on which the Department is satisfied that the person continues to meet the total incapacity condition despite engaging in such work.
2
Except as provided in paragraphs (8) and (9), where a benefit to which this regulation applies is not paid within one month after the due date, the Department must pay interest on the amount unpaid at the Bank of England base rate compounded with 3-monthly rests from the due date to the date of payment.
3
Where the benefit is a death grant, the due date is the day after the date on which the Department became satisfied that payment may be made.
4
Where the benefit is a lump sum under regulation 168, 171 or 174 or a grant other than a death grant, the due date is the day on which the benefit is payable.
5
Where the benefit is a pension or annuity, the due date is—
a
in the case of a payment under regulation 164(2) or 165(2), the initial payment date (as defined in regulation 163);
b
in the case of a payment under regulation 164(5) or 165(5), the cessation date (as defined in regulation 163);
c
in any other case, the date on which payment is to be made under regulation 164(4) or 165(4).
6
In determining the due date in accordance with paragraphs (4) and (5), no account is to be taken of the requirement to make an application for the benefit under regulation 162.
7
In this regulation “Bank of England base rate” means—
a
the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the 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 is in force, any equivalent rate determined by the Treasury under that section.
8
Where a payment to the Department is received after the benefit to which it relates becomes payable, it may determine that this regulation does not apply to the benefit until the payment is received.
9
If paragraph (10) applies, the Department may determine that this regulation does not apply to any benefit, either in respect of the whole period or any part of the period referred to in paragraph (10)(a).
10
This paragraph applies if—
a
a benefit is payable between the date specified under regulation 175(1) and the date on which the evidence required under that regulation is received by the Department;
b
that evidence was not provided by the date specified but was provided later; and
c
it does not appear to the Department that the delay in providing the evidence was due to circumstances outside the control of the person to whom the benefit is payable.

Payment of benefits in certain cases
179
1
Where a person (P) to whom a benefit is payable has not reached 18 or is incapable by reason of infirmity of mind or body of managing P's affairs, the Department may—
a
pay the benefit to any person having the care of P, or
b
apply it as the Department thinks fit for the benefit of P or P's dependants.
2
Where on the death of a person (D) the total of any sums due to D and any sums payable to D's personal representatives under these Regulations does not exceed the amount specified in any order made under section 6 of the Administration of Estates (Small Payments) Act (Northern Ireland) 1967 which applies to D's death, the Department may, without requiring the production of probate or other proof of title, pay the amount due—
a
to D's personal representatives, or
b
to the person, or to or among any one or more of any persons, appearing to the Department to be beneficially entitled to D's estate.

Benefits not assignable
180
1
Where a benefit is payable to a person or a person has a right to a future benefit, the benefit or the right to the benefit must not be assigned in favour of the person's surviving spouse, surviving civil partner or dependant, and an agreement to this effect is void.
2
Article 89 of the 1995 Order (inalienability of occupational pensions) prevents assignment in other circumstances.

Forfeiture of benefits
181
1
The Department may, in relation to a benefit to which this regulation applies—
a
defer or suspend payment of a benefit for so long as it determines; or
b
reduce the amount or rate of the benefit by so much and for so long as it determines.
2
This regulation applies in relation to—
a
a benefit payable to a person convicted of an offence mentioned in paragraph (3) if the offence is committed before the benefit became payable;
b
a retirement pension or pension credit retirement pension payable to a person convicted of an offence mentioned in paragraph (4) (or a lump sum payable to that person in place of part of a pension) if the offence is committed before the benefit became payable;
c
a benefit payable to a person convicted of an offence mentioned in paragraph (5) if the person is the beneficiary of the deceased member.
3
The offence is—
a
an offence of treason, or
b
one offence or more under the Official Secrets Acts 1911 to 1989 , or under section 18 of, or listed in section 33(3)(a) of, the National Security Act 2023, for which the person has been sentenced on the same occasion to—
i
one term of imprisonment of at least 10 years; or
ii
2 or more consecutive terms of imprisonment which add up to at least 10 years,
4
The offence is—
a
committed in connection with service as a public servant; and
b
certified by the Secretary of State as—
i
gravely injurious to the interests of the State; or
ii
liable to lead to serious loss of confidence in the public service.
5
The offence is one of the following offences committed in relation to the death of a member (D)—
a
the murder of D;
b
the manslaughter of D;
c
any other offence of which the unlawful killing of D is an element.
6
The power in paragraph (1) may not be exercised in relation to the guaranteed minimum pension of a person unless—
a
the person is convicted of an offence mentioned in paragraph (3); or
b
in the case of a widow's, widower's or surviving civil partner's guaranteed minimum pension, the person by reference to whose employment the pension is payable is convicted of an offence mentioned in paragraph (3).

Reduction in benefits: annual allowance and lifetime allowance charge
182
1
This Regulation applies to the situations set out in paragraphs (2) and (3), in relation to a benefit payable under these regulations, and in paragraphs (4) and (5) “the charge” refers to either of the charges set out in paragraphs (2) and (3).
2
The lifetime allowance charge under section 214 of the Finance Act 2004 arises because a benefit becomes payable to a person and the person and the Department are jointly and severally liable to the charge.
3
The annual allowance charge under section 227 of the Finance Act 2004 arises in respect of a person who serves a notice under section 238A of that Act .
4
The Department must pay the charge.
5
The amount of the benefit must be reduced to reflect the amount of the charge in such manner as the Department is to determine, after taking advice from the scheme actuary.

General prohibition on unauthorised payments
183
Nothing in these Regulations requires or authorises the making of any payment which, if made, would be an unauthorised payment for the purpose of Part 4 of the Finance Act 2004 (see section 160(5) of that Act) unless the Department determines otherwise (in the case of a particular payment).
1998 c. 11.
1967 c5; the amount currently specified in S.R. 2004 No. 68 is £10,000.
1911 c.28, S.R. 1920 c.75, S.R. 1939 c. 21, S.R. 1989 c. 6.
Section 238A was inserted by the Finance Act 2011 (c.11), Schedule 17.
Words in reg. 181(3)(b) inserted (20.12.2023) by The National Security Act 2023 (Consequential Amendments of Subordinate Legislation) Regulations 2023 (S.I. 2023/1267), reg. 1(2), Sch. para. 39