Regulation 36 Interest and administration charges: late paid contributions
England and Wales
Where there is a chargeable event, the scheme manager may determine what amount of contributions F3or, as the case may be, the scheme administration charge are unpaid having regard to—
the amount of contributions or, as the case may be, the scheme administration charge historically paid at a chargeable event by that employing authority;
any reasons or explanation provided by the employing authority for the change in the amount of contributions or, as the case may be, the scheme administration charge (if any) it has paid at such an event;
any other factors that the scheme manager considers relevant.
Where there is a chargeable event, the employing authority is liable to pay—
standard rate interest on the amount of unpaid contributions constituting that event or the amount of unpaid scheme administration charge constituting that event; or
both interest and the charge referred to in (a); and
a supplementary charge in respect of each such event.
Where the scheme manager becomes aware of a chargeable event, the scheme manager must give the employing authority a written notice specifying—
the date of the chargeable event;
the amount of unpaid contributions F5or, as the case may be, the scheme administration charge determined under paragraph (2);
the amount of interest at the standard rate payable in respect that event;
the amount of F6supplementary charge payable in respect of it; and
that payment of the amounts referred to in paragraphs (c) and (d) is to be made before the end of the period of 1 month starting with the date of the notice and that failure to do so incurs further interest and F7supplementary charges.
An amount payable by way of interest or payable by way of an F8supplementary charge is to be paid as a single lump sum unless the scheme manager—
considers the case to be exceptional; and
considers it appropriate for all, or part, of the amount to be paid over a period and by a number of instalments determined by the scheme manager.
Where the scheme manager considers the case to be exceptional, nothing in the preceding paragraphs prevents the scheme manager from waiving all or any part of the amount of interest, or all or any F9supplementary charges, payable.
The standard rate of interest in respect of arrears for the scheme year 2015/2016 and subsequent years is the rate of the consumer prices index for the month of February immediately preceding the scheme year in which the chargeable event arose plus 3% compounded at annual intervals.
The F10supplementary charge in respect of arrears for the scheme year 2015/2016 and subsequent years is £75.
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 successor, transmittee or assignee of all or part of an employing authority's business or functions.
In paragraph (7), “consumer prices index” means the all item consumer prices index published by the UK Statistics Authority.
Annotations
Textual amendments
- F1
Words in reg. 36(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. 2(c), 30(2)(a)
- F2
Word in reg. 36(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. 2(c), 30(2)(b)
- F3
Words in reg. 36(2) inserted (1.4.2017) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 2(c), 30(3)
- F4
Reg. 36(3) substituted (1.4.2017) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 2(c), 30(4)
- F5
Words in reg. 36(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. 2(c), 30(5)(a)
- F6
Words in reg. 36(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. 2(c), 30(5)(b)
- F7
Words in reg. 36(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. 2(c), 30(5)(c)
- F8
Words in reg. 36(5) substituted (1.4.2017) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 2(c), 30(6)
- F9
Words in reg. 36(6) substituted (1.4.2017) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 2(c), 30(7)
- F10
Words in reg. 36(8) substituted (1.4.2017) by The National Health Service Pension Scheme and Additional Voluntary Contributions (Amendment) Regulations 2017 (S.I. 2017/275), regs. 2(c), 30(8)
Marginal citations
- M1
2006 c.41. Paragraph 29(3) of Schedule 4 was amended by section 55(1) of, and paragraphs 22(1) and (9) of Schedule 4 to, the Health and Social Care Act 2012 (c.7).
- M2
2006 c.42. Paragraph 8 of Schedule 3 was amended by section 297 of, and paragraphs 12 and 40(1) and (5) of Schedule 21 to, the Health and Social Care Act 2012.