CHAPTER III

PAYMENT OF BENEFITS ETC.

Pension increases and cash equivalents under the Pension Schemes Act 1993

90. Any increase in a pension required by reason of Chapter III of Part IV of the Pension Schemes Act 1993 (protection of increases in guaranteed minimum pensions: anti-franking) must be paid from the appropriate fund.

Pension increases under the Pensions (Increase) Acts

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91.-(1) Where a pension to which the Pensions (Increase) Act 1971 ("the 1971 Act") applies is payable out of an appropriate fund, any increase under that Act or the Pensions (Increase) Act 1974 ("the 1974 Act"), must be paid from that fund.

(2) But Schedule 3 to the 1971 Act only has effect in relation to any such increase where-

(3) In a case where the last employing authority ceases after 31st March 1990 to be such a body, Schedule 3 to the 1971 Act has effect only so far as the cost of the increase has not, in the opinion of an actuary appointed by the administering authority of the fund, already been provided for by contributions under regulation 79.

(4) Where the last employing authority is a Water Act Company, the Environment Agency must reimburse the appropriate administering authority the cost of any increase payable under the 1971 Act or the 1974 Act on or after 1st April 1990 from the Closed Water Authorities Fund.

(5) The Closed Water Authorities Fund is the Closed Fund vested in the Environment Agency by regulation 2(1) of the Local Government Pension Scheme (Environment Agency) Regulations 1996.

(6) The amounts due under paragraph (4) or under Schedule 3 to the 1971 Act must be paid on or before such dates falling at intervals of not more than 12 months as the appropriate administering authority may determine.

(7) The administering authority shall credit to the appropriate fund any amounts paid to them under paragraph (4) or Schedule 3 to the 1971 Act and any interest paid on them.

(8) The last employing authority has the same meaning as in paragraph 1(2) of Schedule 3 to the 1971 Act, except that if the pension became payable by reason of service with a relevant body, it means that body.

(9) Relevant bodies are-

(10) A Water Act Company is-

Contributions equivalent premiums

92.-(1) Where a Scheme employer pays a contributions equivalent premium under section 55 of the Pension Schemes Act 1993 in respect of a member, that employer may recover or, if an administering authority, retain from the appropriate fund a sum not exceeding the premium.

(2) But if the Scheme employer may recover or retain any sum under section 61 of that Act in respect of the premium, then only the balance may be recovered or retained under paragraph (1).

(3) Where a contributions equivalent premium is refunded under regulation 54(1)(c) of the Occupational Pension Schemes (Contracting-out) Regulations 1996 (re-entry into employment which is contracted-out by reference to the same scheme), the authority to whom it is refunded must pay to the appropriate fund a sum equal to the amount of the premium.

Commencement of pensions

93.-(1) The first period for which any retirement pension which is payable immediately on a member leaving any employment is payable begins with the day after the date with which his employment ends.

(2) The first period for which any retirement pension under regulation 31 is payable begins-

(3) Any short-term pension payable on the death of a member is payable in respect of a period beginning with the day after the date on which he dies.

(4) The first period for which any long-term pension is payable on the death of a member in a case where no short-term pension is payable begins with the day after the date on which he dies.

Interest on late payment of certain benefits.

94.-(1) Where all or part of a pension or lump sum payment due under these Regulations or the 1995 regulations is not paid within the relevant period after the due date, the appropriate administering authority must pay interest on the unpaid amount to the person to whom it is payable- calculated from the due date as provided in regulation 82(2) (SI1998/1238)

(1A) The relevant period-

(2) In the case of a pension the due date is one month after the amount the date on which it (SI1998/1238) becomes payable.

(2A) In the case of a retirement grant, the due date is the date on which it is payable. (SI1998/1238)

(3) In the case of a death grant, the due date is the date on which - the member dies. (SI1998/1238)

(4) In the case of an ill-health grant, the due date is the day after the member ceased to hold his employment.(SI1998/1238)

(5) In the case of a payment of a lump sum under regulation 49 or 50, 50, 156 or 157 (SI2000/3025) the due date is the day after the member would otherwise become entitled to payment of a pension. (SI1998/1238)

(6) In this regulation, references to "member" include reference to a pension credit member and the reference in paragraph (2A) to the "retirement grant" includes the lump sum grant referred to in regulation 147(2)(a). (SI2000/3025)

Payments due in respect of deceased persons

95.-(1) If when a person dies the total amount due to his personal representatives under the Scheme (including anything due to him at his death) ("the amount due") does not exceed the small payments amount, the appropriate administering authority may pay the whole or part of the amount due from their pension fund-

without the production of probate or letters of administration of his estate.

(2) The small payments amount is the amount specified in any order for the time being in force under section 6 of the Administration of Estates (Small Payments) Act 1965 and applying in relation to his death.

(3) Such a payment discharges the appropriate administering authority from accounting for the amount paid.

Non-assignability.

96.-(1) Every benefit to which a person is entitled under Scheme is payable to or in trust for him.

(2) No such benefit is assignable or chargeable with his or any other person's debts or other liabilities.

(3) On the bankruptcy of a person entitled to a benefit under the Scheme no part of the benefit passes to any trustee or other person acting on behalf of the creditors, except in accordance with an income payments order under section 310 of the Insolvency Act 1986.

Treatment of other benefits

96A. Any payment of employment-related benefits made to a member by an administering authority other than in accordance with regulations made under section 7 of the Superannuation Act 1972 shall be treated as if it had been made under the Scheme. (SI2006/966)