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The Coal Industry Nationalisation (Superannuation) Regulations 1950

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Duty of Board to safeguard superannuation rights and expectations

3.—(1) In the case of persons, whether taken into the service of the Board or not, who have been before the primary or other vesting date in transferred employment , where either—

(a)a right to any particular benefits in favour of any such person, or in favour of another person by reference to his employment, ceases or is prejudiced by reason of his ceasing in consequence of the passing of the Act of 1946 to be employed by his previous employer or in the activities constituting such employment; or

(b)any such person has retired from transferred employment before the primary or other vesting date, and he, or another person by reference to his employment, has been in receipt of benefits granted in respect of his employment, whether as of right or under customary practice;

the Board shall either provide by a scheme or other arrangement established by them benefits for such persons as aforesaid in all respects the same as, or not less advantageous than, the benefits mentioned in sub-paragraphs (a) or (b) of this paragraph, as the case may be, or participate in and continue an existing scheme or other arrangement under which such benefits are granted.

(2) In the case of persons, whether taken into the service of the Board or not, who have been before the primary or other relevant vesting date in transferred employment, where an expectation of accruer, whether as of right or under customary practice, of any particular benefits in favour of any such person, or in favour of another person by reference to his employment, ceases or is prejudiced by virtue of his ceasing in consequence of the passing of the Act of 1946 to be employed by his previous employer or in the activities constituting such employment, the Board shall provide in his favour, or in favour of that other person by reference to his employment, fair and reasonable compensation for the cesser of or prejudice to that expectation. Such compensation shall be a pension, gratuity or benefit of the same kind payable on the happening of the same events as the benefits expected to accrue and calculated (so far as practicable) on the same basis as those benefits by reference—

(a)to the period of employment to service wherein that expectation was ascribable; and

(b)(except where the benefits expected to accrue would not have been ascertained by reference to emoluments enjoyed by him) to the emoluments enjoyed by him during that period;

and shall take into account any loss of benefits which might have been expected to accrue by virtue of employment after the expiration of the period referred to in sub-paragraph (a) hereof in accordance with the three next following paragraphs of this regulation, or, if the Board so decide after considering any preference expressed by him, shall be a pension, gratuity or benefit not less advantageous than that so payable and calculated:

Provided that no compensation shall be payable in respect of the loss of or prejudice to any expectation unless a claim in writing in respect thereof is made to the Board not later than two years, subject to the provisions of paragraph (7) of this regulation, from the date on which the person concerned ceased to be employed by his previous employer or in the activities aforesaid (whichever caused the prejudice or cesser) or, if later, from the coming into operation of these regulations.

(3) In the case of any person taken into the service of the Board to whom or by reference to whose employment compensation is to be provided under the last preceding paragraph by reason of his ceasing to be employed in that service, there shall be added to the period referred to in sub-paragraph (a) of that paragraph his period of service with the Board and (except where the benefits expected to accrue would not have been ascertained by reference to emoluments enjoyed by him) the emoluments to be referred to shall be the amount described in sub-paragraph (a) or sub-paragraph (b) of this paragraph whichever is the greater, that is to say—

(a)the amount of his emoluments in any year during his period of service with the Board relevant for the purpose of the calculation of compensation in accordance with the last preceding paragraph of this regulation or, if less, the amount calculated in accordance with the provisions of the schedule hereto in respect of that year, or

(b)the emoluments enjoyed by him during the employment to which his expectation was ascribable together with any regular periodical increase or any specific increase of emoluments at any particular time of which he had an assurance if that employment had continued, being a time during his service with the Board.

(4) In the case of any person to whom or by reference to whose employment compensation is to be provided under paragraph (2) of this regulation, if he was not taken into the service of the Board, by reason of his ceasing to be employed in the employment to which his expectation was ascribable, or, if he was taken into the service of the Board, by reason of his ceasing to be employed in that service,—

(a)who had attained the age of forty at the time of such cesser (being before the benefits were expected to accrue), and

(b)who had been regularly employed in transferred employment or in the service of the Board (or would have been in such employment or service if he had not been engaged in war service) for at least ten years in the aggregate either since the 1st day of January, 1935, or during any period if he was taken into the service of the Board, and he had immediately prior to being taken into such service been in transferred employment (or would have been in such employment if he had not been engaged in war service) and he had, during every part of that period in which he was not so employed or engaged, been regularly employed in or in connection with coal industry activities or transferred allied activities,

there shall, in calculating the compensation to be provided by reason of that cesser, be added to the period referred to in sub-paragraph (a) of that paragraph one year for each complete year of such employment or service after attaining forty, subject to a maximum of ten years or the number of complete years between the date when such employment or service ceased and the earliest time at which benefits were expected to accrue on retirement whichever is the less: so however that the added years may be reduced or excluded having regard to any emoluments or pension rights arising from further employment which he has or could have obtained.

(5) In calculating any compensation payable by virtue of either of the two last preceding paragraphs account shall be taken of any contribution which the person would have made in respect of any period added to the period referred to in subparagraph (a) of paragraph (2) of this regulation towards the benefits expected to accrue but no account shall be taken of any amount by which any emoluments exceed £4,000 per annum, and no payment shall be made by virtue thereof such that the aggregate annual value of any benefits receivable by a person in connection with any employment of his (all such benefits being expressed as a pension for life) would exceed either two-thirds of the emoluments received by him in the year of his service in transferred employment, or, if taken into the service of the Board, in that service, or the annual value of any benefits (expressed as aforesaid) which he would have received if he had continued in employment, or in the service of the Board, as the case may be, receiving those emoluments until the earliest time at which those benefits were expected to accrue on retirement.

(6) There shall be referred to a referee or board of referees appointed by the Minister of Labour and National Service any dispute arising—

(a)in relation to paragraph (1) of this regulation, whether the benefits provided by the Board under that paragraph are the same as, or not less advantageous than, those the right to which has so ceased or been prejudiced or, as the case may be, those that had been received; or

(b)in relation to paragraph (2) of this regulation, whether compensation provided by the Board under that paragraph satisfies the requirements thereof.

The decision of the referee or board of referees shall be final, and nothing in the Arbitration Acts, 1889 to 1934, shall be construed as applying to any proceedings before him or them.

(7) The Minister may, on written application being made to him in that behalf, whether the period referred to in the proviso to paragraph (2) of this regulation has expired or not, extend that period in any case in which he is satisfied that there is reasonable ground for the claim not being or not having been made in that period.

(8) If the Board shall be of opinion that any benefit to which any such person had a right or an expectation of accruer as aforesaid, or of which any such person had been in receipt as aforesaid, was granted or increased on or after the first day of August, 1945, otherwise than in the ordinary course, in connection with any provision made by the Act of 1946 or with any anticipation of the making of any such provision, the Board may, at any time within twelve months from the relevant date or the date on which the Board first have notice of such grant or increase (whichever date is the later) give notice to the effect that they are of that opinion to such person, and if the Board give such a notice they shall not be under obligation under a scheme or other arrangement either established or continued by them to provide benefits so granted or to the extent of such increase:

Provided that a person to whom a notice is given by the Board in pursuance of this paragraph, may, within one month from the date on which the notice is served on him, if the Minister consents, refer the matter to arbitration under the Act of 1946; and if the matter is so referred the arbitrator shall consider whether or not the opinion of the Board was justified and, if not, or not wholly, justified, to what extent (if at all) the benefits so granted, or the amount of the increase, should bind the Board; and any adjustment required in consequence of such a determination shall be made accordingly.

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