Aircraft and Shipbuilding Industries Act 1977 (repealed)

49 Provisions as to pension rights. U.K.

(1) Each Corporation may, in the case of such of the persons who are or have been employed by the Corporation or any of its wholly owned subsidiaries as it may determine,—

(a) pay such pensions to or in respect of those persons,

(b) make such payments towards the provision of such pensions, or

(c) establish and maintain such schemes for the payment of such pensions,

as it may determine.

(2) A scheme under subsection (1) above may provide that, subject to subsection (3) below, where a person participating in the scheme as an employee of a Corporation or any of its wholly owned subsidiaries becomes a member of that Corporation, his service as a member shall be treated for the purposes of the scheme as if it were service as an employee.

(3) To the extent that a scheme under subsection (1) above provides that any description of benefit may, or may in particular circumstances, be conferred on a person only on the request or with the consent of a Corporation, the scheme may not make the provision referred to in subsection (2) above unless it also provides that, except with the approval of the Secretary of State and the Minister for the Civil Service, no such request or consent shall be made or given in the case of a benefit for or in respect of a member of the Corporation.

(4) Subject to subsection (6) below, the Secretary of State may by regulations made by statutory instrument, subject to annulment in pursuance of a resolution of either House of Parliament, make, in relation to any pension scheme not made under subsection (1) above (in this section referred to as an “existing scheme”) which provides for pensions to or in respect of persons who are or have been employed by a company which becomes a wholly owned subsidiary of either Corporation, such provision as appears to him to be expedient in consequence of its having become such a subsidiary.

(5) Without prejudice to the generality of subsection (4) above, regulations under that subsection may make provision—

(a) for the complete or partial amalgamation of existing schemes either with other such schemes or with schemes established under subsection (1) above;

(b) for amending, repealing or revoking any existing schemes, any enactment relating to an existing scheme or to a scheme resulting from an amalgamation under paragraph (a) above or any trust deed, rules or other instrument made for the purposes of an existing scheme or of a scheme resulting from such an amalgamation;

(c) for the complete or partial transfer of liabilities and obligations under existing schemes or for reducing or extinguishing such liabilities or obligations;

(d) for the complete or partial transfer, or the winding-up, of any pension fund held for the purposes of an existing scheme; and

(e) for supplemental or consequential matters.

(6) Nothing in subsection (4) or (5) above shall authorise the making of provision for the diversion of any pension fund to purposes other than the payment of pensions to or in respect of persons to whom subsection (1) above applies.

(7) Subject to subsection (8) below, regulations under subsection (4) above shall be so framed as to secure that persons having pension rights under an existing scheme, whether such persons as are mentioned in subsection (1) of this section or not, are not placed in any worse position by reason of the regulations.

(8) Regulations under subsection (4) above may make exceptional provisions to meet cases in which, in connection with any provision made by this Act or in anticipation of the making of any such provision, pension rights have been created otherwise than in the ordinary course.

(9) Regulations under subsection (4) above shall not be invalid by reason that in fact they fail to secure the result referred to in subsection (7) above but, if the Secretary of State is satisfied that they have failed to secure it, or it is so determined as hereinafter mentioned, the Secretary of State shall as soon as possible make the necessary amending regulations.

(10) Any question whether or not the result referred to in subsection (7) above has been secured by regulations under subsection (4) above, including any question whether it has been secured by amending regulations under that subsection made in pursuance of subsection (9) above, shall be referred to and determined by [F1 an industrial tribunal or, as the case may require, a tribunal established under], [F2 Article 30 of the Industrial Training (Northern Ireland) Order 1984].

(11) Regulations under subsection (4) above may be made so as to have effect from a date prior to the making thereof, so, however, that so much of any regulations as provide that any provision thereof is to have effect from a date prior to the making thereof shall not place any person other than a Corporation or its wholly owned subsidiary in a worse position than he would have been in if the regulations had been made to have effect only as from the date of the making thereof.

(12) Where, by reason of any provision in regulations made under subsection (4) above, other than a provision expressed to be made to meet a case such as is mentioned in subsection (8) above, loss is suffered by any person who is liable to make contributions or to pay pensions under an existing scheme (other than a wholly owned subsidiary of the relevant Corporation) the relevant Corporation shall pay compensation to that person in respect of the loss, and the amount thereof shall, in default of agreement between the Corporation and that person, be determined by arbitration under this Act.

(13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

(14) The power to make regulations under subsection (4) above includes power to provide by those regulations—

(a) for the determination of questions of fact or of law which may arise in giving effect to the regulations, and

(b) for regulating (otherwise than in relation to any court proceedings) any matters relating to the practice and procedure to be followed in connection with the determination of such questions, including—

(i) provision as to the mode of proof of any matters,

(ii) provision as to parties and their representation,

(iii) provision for the right to appear and be heard (as well in court proceedings as otherwise) of the Secretary of State or other authorities, and

(iv) provision as to awarding costs of proceedings (other than court proceedings) for the determination of such questions, determining the amount thereof and the enforcement of awards thereof.

(15) References in this section to employment by a wholly owned subsidiary of a Corporation include references—

(a) to employment before the date of transfer by a company which becomes such a subsidiary; and

(b) to employment under an agreement for the rendering of personal services which ceased to be in force before the date of transfer of a company and under which, had it remained in force on that date, rights or liabilities would, by virtue of section 20 above, have vested in that company.

Textual Amendments

F1 Words substituted by Employment Protection (Consolidation) Act 1978 (c. 44), Sch. 16, para. 28 and said substitution continued (E.W.S) (22.8.1996) by 1996 c. 17, ss. 43, 46, Sch. 1 para. 5 (with s. 38).

F2 Words substituted by S.I. 1984/1159 (N.I. 9), art. 34, Sch. 3 para. 10

F3 S. 49(13) repealed by British Aerospace Act 1980 (c. 26, SIF 64), s. 15(2), Sch. 3

Modifications etc. (not altering text)

C1 S. 49 amended by British Aerospace Act 1980 (c. 26, SIF 64), s. 10(1)