The Teachers' Superannuation (Scotland) Amendment Regulations 1999

Interest on late payment of certain benefits

15.  For regulation E31A(1), there shall be substituted–

“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 (other than in cases where the beneficiary has not accepted payment or has knowingly by his actions made payment impossible or impracticable), the Secretary of State shall pay to the person to whom the benefit is payable interest on the amount remaining unpaid at the base rate for the time being quoted by the reference banks.

(2) The interest referred to in paragraph (1) shall be calculated on a day to day basis from the due date to the date of payment, and compounded with three-monthly rests.

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

(a) in the case of a death gratuity under regulation E19 or a deficiency grant under regulation E20, the day after the date on which the Secretary of State has become satisfied that the benefit may be paid; and

(b) in any other case, the date on which the person becomes entitled to the benefit.

(4) For the purposes of paragraph (1) the due date, in a case where a benefit does not consist of a single payment, is the last day of the month in which entitlement to the benefit took effect.

(5) For the purposes of paragraph (1)–

(a) “the base rate” means the rate for the time being quoted by the reference banks as applicable to sterling deposits 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 four, is the first in the sequence; and

(b) “the reference banks” means the four largest institutions for the time being which–

(i) are authorised by the Bank of England under the Banking Act 1987(2);

(ii) 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

(iii) quote a base rate applicable to sterling deposits.”.

(1)

Regulation E31A was inserted by S.I. 1997/676.

(2)

1987 c. 22.