Railway Pensions (Transfer and Miscellaneous Provisions) Order 1994
| Jurisdiction | UK Non-devolved |
| Citation | SI 1994/2005 |
| Year | 1994 |
1994 No. 2005
TRANSPORT
The Railway Pensions (Transfer and Miscellaneous Provisions) Order 1994
Made 28th July 1994
Whereas in so far as the following Order is made under paragraph 3 of Schedule 11 to the Railways Act 19931the Secretary of State has consulted the trustees of the occupational pension schemes amended by article 4 below;
Whereas in so far as the following Order is made under paragraph 4 of that Schedule the Secretary of State has consulted the trustees of the occupational pension schemes which are, or are to be, the transferor scheme and the transferee scheme pursuant to article 2 below;
Whereas in so far as the following Order is made under paragraph 10 of that Schedule the Secretary of State has consulted the trustee of the occupational pension scheme to which qualifying pension rights are to be transferred by article 2 below;
Whereas it appears to the Secretary of State to be necessary or expedient in consequence of provisions made by the following Order to amend or modify the application of the legislation referred to in Schedule 6 to the Order as provided in that Schedule;
Whereas a draft of the Order was laid before Parliament and no comments have been received as referred to in paragraph 13(2) of Schedule 11 to the Railways Act 1993;
And whereas that draft was approved by resolution of each House of Parliament;
Now, therefore, the Secretary of State, in exercise of the powers conferred on him by section 143(3) and (4) of, and paragraphs 2 to 4, 6 to 8, 10 and 12 of Schedule 11 to, the Railways Act 19932and of all other powers enabling him in that behalf, hereby makes the following Order:
Citation and commencement
1. This Order may be cited as the Railway Pensions (Transfer and Miscellaneous Provisions) Order 1994 and shall come into force as follows—
(a) articles 1 and 3 to 5 on 1st August 1994;
(b) articles 2(1) to (10), 6 and 7 on 1st October 1994;
(c) article 2(11) on 2nd October 1994.
Transfer of members, assets and liabilities and the winding up of certain existing schemes
2.—(1) All those persons with pension rights under the BR Pension Scheme (being an existing scheme) who are eligible to be members of the Railways Pension Scheme (being a new scheme) shall be members of the Railways Pension Scheme (“the transferee scheme”) instead of the BR Pension Scheme (“the transferor scheme”); and their pension rights under the transferor scheme shall be transferred so as to become pension rights under the transferee scheme.
(2) Subject to the provisions of paragraph (5) of this article, all of the assets held by the trustee of the transferor scheme for the purposes of that scheme shall be transferred so as to be held by the trustee of the transferee scheme for the purposes of that scheme, and any assets held by any other person for the purposes of the transferor scheme, whether on behalf of the trustee of the transferor scheme or otherwise, shall be transferred so as to be held by that person for the purposes of the transferee scheme on behalf of the trustee of the transferee scheme or otherwise, as the case may be.
(3) Subject to the provisions of paragraph (5) of this article, any liabilities under or in relation to the transferor scheme of an employer who is participating in that scheme shall be transferred so as to become liabilities of that employer under or in relation to the transferee scheme, to the extent that such liabilities are not transferred by paragraph (2) of this article.
(4) Any liabilities of the trustee of the transferor scheme under or in relation to that scheme shall be transferred so as to become liabilities of the trustee of the transferee scheme under or in relation to that scheme, to the extent that such liabilities are not transferred by paragraph (1) or (2) of this article.
(5) Paragraphs (2) and (3) of this article shall not transfer any liability of an employer who is participating in the transferor scheme to pay contributions to that scheme in respect of any period after 30th September 1994 so as to become a liability of that employer under or in relation to the transferee scheme or an asset of the transferee scheme.
(6) The investment assets (within the meaning of Schedule 1 to this Order) transferred by paragraph (2) of this article shall be allocated to sections of the transferee scheme in accordance with the provisions of Schedule 1 to this Order.
(7) The pension rights transferred by this article so as to become pension rights under the transferee scheme shall be allocated to sections of that scheme, and persons with pension rights so transferred shall become members of sections of that scheme, in accordance with the provisions of Schedule 2 to this Order.
(8) Subject to the provisions of paragraph (9) of this article, any person who is on 1st October 1994 the employer of a person whose pension rights are transferred by this article shall—
(a)
(a) participate in the transferee scheme in accordance with the rules of that scheme for such period as he remains the employer of that person and that person remains a participant in that scheme, and
(b)
(b) pay contributions in respect of that person in accordance with the rules of that scheme.
(9) Paragraph (8) of this article shall not impose a duty to participate or pay contributions on the employer of a person where the employer is under a duty under article 3 of the British Transport (Pensions of Employees) (No. 1) Order 19693in respect of that person.
(10) Where pension rights are transferred by this article, articles 4 (obligation to provide a scheme) and 6 (scheme amendment, transfer and winding up) of the Railway Pensions (Protection and Designation of Schemes) Order 19944shall have effect as if the assets transferred by paragraph (2) of this article in respect of those pension rights constituted the payment of a transfer value in respect of those rights in accordance with that Order, and accordingly—
(a)
(a) nothing in article 6(2) to (4) or 7(4) (contributions) of that Order shall require the payment of any sum in respect of that transfer; and
(b)
(b) article 7(2)(a) of that Order shall have effect as if those pension rights had been transferred in accordance with article 6 of that Order.
(11) The transferor scheme shall be treated for all purposes as wound up.
Amendment of the Railway Pensions (Protection and Designation of Schemes) Order 1994
3. The Railway Pensions (Protection and Designation of Schemes) Order 1994 shall be amended as follows—
(a) in article 6(6) (winding up) for the words from “the steps set out” to “as the circumstances may require,” there shall be substituted the words “the requirements set out in paragraph (7) or (8), as the case may require, have first been complied with and any steps which are taken for the purpose of winding up such a scheme or part thereof without those requirements having first being complied with”;
(b) in article 6(8) (winding up) for the words from “is sufficient” to “pension rights were” there shall be substituted the words “, in the opinion of the scheme actuary of the scheme which is to be wound up, is sufficient to secure relevant pension rights which are no less favourable than that person’s relevant pension rights were immediately before the transfer”;
(c) in article 7(4) (contributions)—
(i) in sub-paragraph (a) for the words from “the difference” to the end of that sub-paragraph there shall be substituted the words “any part of the transfer value calculated by the scheme actuary under article 6(2) and (3) which is not paid under that article; and”; and
(ii) in sub-paragraph (b) for the words from “such part” to the end there shall be substituted the words “any part of any amount required to be paid under sub-paragraph (a) which is not paid.”;
(d) in article 9(1) (circumstances in which breaks in continuity of employment are disregarded)—
(i) for sub-paragraph (b) there shall be substituted the following sub-paragraph—
“(b)
“(b) any break in the continuity of employment of a person which consists of a period which begins with the ceasing of employment with an employer (“the former employer”) who was participating in the joint industry scheme and ends with the entering into employment with an associated employer of the former employer who is participating in that scheme, where that period would have been disregarded in determining continuity of employment of the person in question if both before and after that period his employer had been either the former employer or that associated employer”; and
(ii) in sub-paragraph (c) from the beginning of that sub-paragraph to the end of sub-paragraph (c)(i) there shall be substituted the following words—
“(c)
“(c) any break in the continuity of employment of a person which consists of a period which begins with the ceasing of employment with an employer (“the former employer”) who is engaged in the railway industry and ends with the entering into employment with another employer (“the other employer”) who is engaged in that industry where that period—
(i) would have been disregarded in determining the continuity of employment of the person in question if both before and after that period his employer had been either the former employer or the other employer;”; and
(e) in article 12(2)(b) (elections) for the words “railway industry” there shall be substituted the words “joint industry scheme”.
Amendment of Existing Schemes
4. Schedule 3 to this Order shall have effect for the purpose of amending the instruments relating to the existing schemes referred to in that Schedule.
Amendment of the Railways Pension Scheme Order 1994
5. Schedule 4 to...
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