Regulation 2 Interest on late payments

The principal Regulations shall be amended by inserting in Part E after regulation E33 the following—

“Interest on late payment of pension

E33A

(1)

Where a pension has become payable and is not paid within twelve months after the due date, the appropriate administering authority shall pay to the person to whom the pension is payable interest, calculated in accordance with regulation E33(1).

(2)

For the purposes of this regulation—

(a)

“pension” means a retirement pension, a widow’s or widower’s pension payable under regulation E5 or E7 and a children’s pension payable under regulation E8, and

(b)

“the due date” is—

(i)

in the case of a retirement pension which becomes payable by virtue of a notice in writing under regulation E2(6) or (7)(a) given on or after the date on which the retirement pension by virtue of that notice becomes payable, the date one month after that notice was given,

(ii)

in the case of part of a pension which becomes payable by virtue of payments or contributions (other than an increase in contributions made following a decision under regulations N1 or N8) made after the date on which the reminder of the pension became payable, the date one month after that increase in payments or contributions was paid,

(iii)

in the case of a pension or part of a pension which becomes payable by virtue of contributions made following a decision under regulation N1 or N8, the date on which that pension or part of a pension would have become payable had those contributions been made at the first opportunity which these regulations would otherwise have provided,

(iv)

in all other cases, the date on which that pension or part of a pension becomes payable.”