The British Transport Reorganisation (Pensions of Employees) (No. 1) Order 1964

Continuing participation in pension schemes

3.—(1) This Article shall apply to any person who—

(a) participates in an existing scheme in connection with his employment by a nationalised transport body,

(b) at any time after the vesting date ceases to be in the employment of that nationalised transport body, and

(c) enters the employment of another nationalised transport body immediately after the cessation of his former employment.

(2) Subject to the provisions of paragraphs (3) and (4) of this Article, any person to whom this Article applies shall not be required, solely by reason of the cessation of his former employment, to cease to participate in the existing scheme in which he participated in connection with that employment, but shall, if the terms of the scheme (other than the terms which would require participation to cease for the reason aforesaid) so permit, continue to participate in that scheme in connection with his new employment upon and subject to the terms of that scheme (which shall have effect in relation to his new employment as it had effect in relation to his former employment), and for the purposes of that scheme the former employment and the new employment shall be treated as continuous, and so long as he continues to participate in that existing scheme by virtue of the provisions of this paragraph the terms of any other pension scheme of the new employing body which require employees of that body to participate therein shall not apply to him.

(3) If a person to whom this Article applies, within three months of the date of his entering the new employment or the date of the coming into operation of this Order (whichever date is later), gives notice in writing to the former employing body, the new employing body and the trustees of, or the persons administering, the relevant scheme, that he does not desire to continue to participate in that scheme (each such notice to be given on the same date), then, upon the giving of that notice, the provisions of paragraph (2) of this Article shall be deemed never to have applied in relation to that person and his participation in the relevant scheme (in so far as it depends on the provisions of this Article) shall be deemed to have ceased when he ceased to be in the employment of the former employing body.

(4) Where in connection with the cessation of his former employment any withdrawal benefits are paid from the relevant scheme to or in respect of a person to whom this Article applies, the provisions of paragraph (2) of this Article shall not apply in relation to him and his participation in the relevant scheme (in so far as it depends on the provisions of this Article) shall be deemed to have ceased when his former employment ceased, unless within three months of the date of entering his new employment or the date of the coming into operation of this Order (whichever date is later), or such longer period as the trustees of, or the persons administering, that scheme may allow in relation to him, he pays to them a sum equivalent to the amount of such withdrawal benefits, together with (where the trustees or the persons aforesaid so require) the amount of any income tax deducted therefrom when those benefits were paid.