The National Health Service Pension Scheme (Amendment) Regulations 2014

New regulation T9

14.  After regulation T8 (interest on late payment of benefits), add—

“Interest and Administration Charges: late paid contributions

T9.— (1) For the purposes of this regulation there is a “chargeable event” where an employing authority fails to pay, by the dates therein specified, the full amount of contributions it is required to pay under any of the following provisions—

(a) regulations D1, D2, D3, Q4, Q5, Q6, Q8, Q10, Q11;

(b) paragraph 10 or 23 of Schedule 2,

(c) Schedule 2B.

(2) Where there is a chargeable event, the amount of contributions that should have been paid under a provision referred to in paragraph (1) is to be determined by the Secretary of State having regard to—

(a) the amount of contributions historically paid pursuant to the provision in question by that employing authority;

(b) any reasons or explanation provided by the employing authority for the change in the amount of contributions (if any) it has paid pursuant to that provision;

(c) any other factors that the Secretary of State considers relevant.

(3) Where there is a chargeable event, the employing authority is liable to pay standard rate interest on the amount of unpaid contributions determined under paragraph (2) and an administration charge in respect of each such event.

(4) Where the Secretary of State becomes aware of a chargeable event, the Secretary of State shall give the employing authority a written notice specifying—

(a) the date of that event;

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

(c) the amount of standard rate interest 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 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 single lump sum unless the Secretary of State considers the case to be exceptional and considers it appropriate for that amount to be paid over a period, and by a number of instalments, determined by the Secretary of State.

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

(7) In respect of arrears in respect of the scheme year 2014-2015 and subsequent years, the standard rate of interest is the consumer prices index for the month of February immediately preceding the scheme year in which the chargeable event arose plus 3 per cent compounded at annual intervals.

(8) In respect of arrears in respect of the scheme year 2014-2015 and subsequent years, the administration charge is £75.

(9) In any particular case the Secretary of State may direct that, for the purposes of this regulation, “employing authority” includes one or more of—

(a) the transferee under a transfer of staff order pursuant to—

(i) in the case of England, section 28(4)(b) of, or paragraph 29(3) of Schedule 4 to, the 2006 Act;

(ii) in the case of Wales, section 22(4)(b) of, or paragraph 8 of Schedule 3 to, the 2006 (Wales) Act;

(b) without limiting sub-paragraph (a), a successor, transmittee or assignee of all or part of an employing authority’s business or functions.”.