3(1)For the purposes of this paragraph, a “protected person” is a person—
(a)who, as a result of any prescribed relevant transaction, becomes, or since 20th March 1998 has become, an employee of a private sector company; and
(b)who, immediately before becoming such an employee, was an employee of London Regional Transport or a subsidiary of London Regional Transport.
(2)The Secretary of State may by order make provision for the purpose of securing that no protected person (and, accordingly, no person who is or may become entitled to a pension in respect of a protected person) ceases to be overall in materially at least as good a position, as respects pension arrangements, as a result of—
(a)the relevant transaction by reason of which the protected person is such a person; or
(b)any pensions order made in connection with that relevant transaction.
(3)The provision that may be made by virtue of sub-paragraph (2) above is provision for the purpose of securing that a protected person has the right—
(a)for so long as the appropriate conditions are satisfied, to continue to participate as a contributing member in any prescribed LRT pension scheme in which he was participating as such a member immediately before the relevant transaction, and
(b)for so long as his period of continuous employment is not broken, to participate as a contributing member in a pension scheme under which the benefits to be provided to or in respect of him are overall materially at least as good as those provided under any prescribed LRT scheme in which he was participating as a contributing member immediately before the relevant transaction,
subject to any provision made by virtue of sub-paragraph (6) below.
(4)For the purposes of sub-paragraph (3)(a) above, “the appropriate conditions” are—
(a)that the protected person continues to be a person employed in the London underground railway industry (whether or not with the same employer); and
(b)that any prescribed conditions with respect to continuity of employment are satisfied in his case.
(5)The provision that may be made by virtue of sub-paragraph (2) above includes provision for or in connection with the level of funding which is to be maintained in the case of any pension scheme of a prescribed description so far as relating to protected persons.
(6)An order made by virtue of sub-paragraph (2) above may make provision for such orders to cease to have effect in the case of any protected person if—
(a)he voluntarily withdraws from an occupational pension scheme, or
(b)he requests that his pension rights be transferred from an occupational pension scheme,
except in such circumstances or to such extent as may be prescribed.
(7)Circumstances may be prescribed in which—
(a)a break in the continuity of a person’s period of employment,
(b)a person’s ceasing to be a person employed in the London underground railway industry, or
(c)a person’s voluntary withdrawal from an occupational pension scheme,
shall be disregarded for prescribed purposes of this paragraph.
(8)Chapter I of Part XIV of the [1996 c. 18.] Employment Rights Act 1996 (continuous employment) shall apply for the purposes of this paragraph as it applies for the purposes of that Act.
(9)For the purposes of this paragraph—
(a)the persons who are to be regarded as “employed in the London underground railway industry” are those who are employed to carry on activities of a class or description specified for the purposes of this sub-paragraph in an order made by the Secretary of State; and
(b)the Secretary of State may so specify any class or description of activity which, in his opinion, falls within, or is related to or connected with, the London underground railway industry.
(10)In this paragraph—
“contributing member”, in the case of any pension scheme, means a member who makes, and whose employer makes in respect of him, contributions under the scheme;
“pensions order” means an order made otherwise than by virtue of this paragraph;
“private sector company” means any company other than a public sector operator, within the meaning of Chapter VII of Part IV of this Act;
“relevant transaction” means—
a transfer of shares in a subsidiary of London Regional Transport to a private sector company; or
a transfer of rights and liabilities under a contract of employment.