The National Health Service Pension Scheme Regulations 1995

[F1 Interest and Administration Charges: late paid contributions E+W+S

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 [F2 and the scheme administration charge] it is required to pay under any of the following provisions—

(a) regulations D1, D2, D3, [F3 D4,] 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 [F4 or, as the case may be, the scheme administration charge] 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 [F4 or, as the case may be, the scheme administration charge] 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 [F4 or, as the case may be, the scheme administration charge] (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) [F5 or, as the case may be, the amount of unpaid scheme administration charge or both together with a supplementary 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 [F6 or, as the case may be, unpaid scheme administration charge, or both] determined under paragraph (2) ;

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

(d) the amount of [F7 supplementary 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 [F8 supplementary charges].

(5) Any amount payable by way of interest or payable by way of a [F9 supplementary 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 [F10 supplementary charges], payable.

[F11 (7) In the case of arrears in respect of the scheme year 2014-2015 and subsequent years, the standard rate of interest is the aggregate of the percentage (if any) by which the consumer prices index for the February before the scheme year in which the chargeable event arose is higher than it was for the previous February plus 3%, compounded at annual intervals.]

(8) In respect of arrears in respect of the scheme year 2014-2015 and subsequent years, the [F12 supplementary 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.]

Textual Amendments

F1 Reg. T9 added (1.4.2014) by The National Health Service Pension Scheme (Amendment) Regulations 2014 (S.I. 2014/570), regs. 1(2), 14 (with reg. 49)

F2 Words in reg. T9(1) inserted (1.4.2017) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 1(2)(c), 7(2)(a)

F3 Word in reg. T9(1)(a) inserted (1.4.2017) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 1(2)(c), 7(2)(b)

F4 Words in reg. T9(2) inserted (1.4.2017) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 1(2)(c), 7(3)

F5 Words in reg. T9(3) substituted (1.4.2017) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 1(2)(c), 7(4)

F6 Words in reg. T9(4)(b) inserted (1.4.2017) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 1(2)(c), 7(5)(a)

F7 Words in reg. T9(4)(d) substituted (1.4.2017) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 1(2)(c), 7(5)(b)

F8 Words in reg. T9(4)(e) substituted (1.4.2017) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 1(2)(c), 7(5)(c)

F9 Words in reg. T9(5) substituted (1.4.2017) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 1(2)(c), 7(6)

F10 Words in reg. T9(6) substituted (1.4.2017) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 1(2)(c), 7(7)

F11 Reg. T9(7) substituted (with effect from 1.4.2014) by The National Health Service Pension Scheme (Amendment No.2) Regulations 2014 (S.I. 2014/1607), regs. 1(2), 6

F12 Words in reg. T9(8) substituted (1.4.2017) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 1(2)(c), 7(8)