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Document Administration and interest charges for employers who pay their scheme contributions late

From 1 April 2014, administration and interest charges will be introduced for NHS Pension employers who pay their scheme contributions late. Employers will not pay any interest or administration charges if:

Scheme contributions are paid by the existing due dates (e.g. the 19th of the month following deductions of regular employee and employer contributions).

Invoices relating to any charges for premature retirement costs currently issued on an individual member basis (e.g. costs for staff being made redundant) are paid no later than 30 days after the invoice date or 30 days after the date of pension, whichever is later.

Quarterly invoices (e.g. ongoing costs for past employees) are paid no later than 90 days after the period for which the invoice relates to.

Contributions due but unpaid on and after 1 April 2014 will incur a daily interest rate of Consumer Price Index (CPI) plus 3%. An administration charge of £75 will also be payable.

There are provisions in the regulations for NHS Pensions to waive an administration and/or interest charge in circumstances which the Scheme Administrator feels are exceptional. Reasons such as staff pressure or postal delays are unlikely to be viewed as exceptional. Employers wishing to claim exceptional circumstances must email evidence and a clear explanation for the late payment to the following email address: nhsbsa.pensionsfinance@nhs.net.

Further details can be requested via nhsbsa.pensionsfinance@nhs.net.  Please include your name, EA code and phone number when contacting us.

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late contributions, interest charges, administration charges, charges

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