Article 17 Interest on returned contributions

Where a period of 12 months is extended pursuant to rule 16(1)(a), the fund authority in respect of a person who has left local government employment, or the Trustee in respect of a person who has left Federated Schemes Employment, may require that person to pay compound interest on any sum paid to him by way of return of contributions (other than voluntary contributions) on or after leaving that employment, at a rate of 3% per annum with half-yearly rests for a period beginning either with the date 12 months after the date on which he left that employment or, where this is later, the date on which he received such sum, and ending with the date on which he notified in writing that he desired these rules to apply to him.

The interest payable under this rule shall not exceed a sum equal to one-half of the difference between the transfer value payable under these rules or the rules of the relevant scheme, as the case may be, and the transfer value which would be payable if calculated by reference to the person's age on leaving such employment.