Regulation M5 Applications for transfer value payments: time limitsF1
Subject to paragraph (5), an application under regulation M4 must be made before the end of the period of 3 months beginning with the guarantee date, and the payment must be made no later than—
6 months after that date; or
if it is earlier, the date on which the member reaches 60.
If the payment is made later than 6 months after the guarantee date, the amount of the payment to which the member is entitled must be increased by—
the amount by which the amount specified in the statement of entitlement falls short of the amount it would have been if the guarantee date had been the date on which the payment is made; or
if it is greater and there was no reasonable excuse for the delay in payment, interest on the amount specified in the statement of entitlement, calculated on a daily basis over the period from the guarantee date to the date when the payment is made at an annual rate of 1 per cent above the Bank of England base rate.
In this regulation “Bank of England base rate” means—
except where sub-paragraph (b) applies, 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, and
if 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.
Paragraph (5) applies if—
disciplinary or court proceedings against the member are begun within 12 months after the member leaves the employment which qualified the member to belong to F2this Section of the Scheme; and
it appears to the Secretary of State that the proceedings may lead to all or part of the member’s benefits being forfeited under regulation T6.
The Secretary of State may defer doing what is needed to carry out what the member requires until the end of the period of 3 months beginning with the date on which those proceedings (including any proceedings on appeal) are concluded.
In any case where a direction is given under regulation T6 for the forfeiture of a member’s benefits, this regulation applies as if the amount specified in the statement of entitlement were reduced by an amount equal to the value of the benefits forfeited, as determined by the Scheme Actuary.
Subject to paragraph (8), if a transfer value payment is made in respect of a member’s rights under this Section of the Scheme, those rights are extinguished.
If the member’s rights described in regulation M1(4) have been excluded from the transfer payment, the Secretary of State will continue to be liable to provide the benefits described in regulation K2(7) (guaranteed minimum pension).
Annotations
Textual amendments
- F1
Pt. M (regs. M1-M6) substituted for Pt. M (regs. M1-M7) (1.4.2008) by The National Health Service Pension Scheme (Amendment) Regulations 2008 (S.I. 2008/654), regs. 1(2), 41
- F2
Words in reg. M5 inserted (1.10.2009) by The National Health Service Pension Scheme, Injury Benefits and Additional Voluntary Contributions (Amendment) Regulations 2009 (S.I. 2009/2446), reg. 1(2), Sch. 1 para. 1