The Railway Pensions (Substitution and Miscellaneous Provisions) Order 1995

3.—(1) Subject to the provisions of paragraphs 4 and 11, if, on any relevant date in relation to any year after 2004 in which 13th April is not less than three months and not more than fifteen months after the date of signature of the relevant actuarial valuation in relation to that year (“the relevant year”), the circumstances specified in sub–paragraph (2) have arisen, then, from 13th April in the relevant year the Secretary of State shall be under a duty to make payments in respect of such amounts as he may notify to the persons administering the Paragraph 2 Section and the Paragraph 5 Section on or before 13th April in the relevant year as being such of the amounts specified in sub–paragraph (3) (taken in the order specified in sub–paragraph (4)) as would, if they, together with any interest added to the outstanding balance of any such amount under paragraph 5(1) or (3) or 7(1) which has not been paid, had not been relevant amounts for the purposes of sub– paragraph (2), have resulted in the circumstances specified in sub–paragraph (2) not arising.

(2) The circumstances referred to in paragraph (1) are that the total of the relevant amounts exceeds A + C where—

“A” means the amount determined by the actuaries in the relevant actuarial valuation in relation to the relevant year as being the amount retained in the Special Reserve Fund as at the valuation date in relation to that valuation, and, where in consequence of that valuation the amount retained in that Fund is or is to be increased or reduced pursuant to Rule 13B or 14B before 1st April in the year three years after the relevant year, that amount so increased or reduced as the case may be; and

“C” means 10% of the amount determined by the actuaries in the relevant actuarial valuation in relation to the relevant year as being the total of the value of all the liabilities of the section in respect of pension rights as at the valuation date in relation to that valuation, and, where any change in pension rights has been made pursuant to Rule 13B or 14B in consequence of that valuation, increased or reduced as the case may be by an amount determined by the actuaries, before the date six months after the date of signature of the relevant actuarial valuation, as the change in the value of the liabilities of the section taking account of such change in pension rights.

(3) The amounts referred to in sub–paragraph (1) are—

(a) the amounts specified in column 2 of Table B in relation to the relevant year and the next two following years; and

(b) each of the outstanding amounts in relation to the relevant year.

(4) Amounts specified in sub–paragraph (3)(a) are to be taken before amounts specified in sub– paragaph (3)(b); the amounts specified in sub–paragraph (3)(a) are to be taken in the order in which those amounts are specified in Table B; and the amounts specified in sub–paragraph (3)(b) are to be taken in the order in which those amounts are specified in Table B.

(5) Where this paragraph requires the Secretary of State to make payments in respect of any amount specified in sub–paragraph (3)(a), those payments shall be made by making 120 payments, the first to be made on 14th April of the year specified in column 1 of Table B against that amount and subsequent payments to be made on the fourteenth day of each following month; and the amount of each such payment shall be determined in accordance with paragraph 9.

(6) Where this paragraph requires the Secretary of State to make payments in respect of any amount specified in sub–paragraph (3)(b), that amount shall be divided into 3 equal parts and the Secretary of State shall make 120 payments in respect of each such part, the first payment to be made, in respect of one part, on 14th April of the relevant year and, in respect of each other part, on 14th April of the two next following years, respectively, and subsequent payments in respect of each part to be made on the fourteenth day of each following month; and the amount of each such payment shall be determined in accordance with paragraph 9.

(7) In this paragraph—

“outstanding amount” in relation to any year, means any amount specified in column 2 of Table B below the amount specified in Table B in relation to that year, except

(i)

any amount specified in sub–paragraph (3)(a),

(ii)

any amount in relation to which there is a subsisting duty to make payments under paragraph 2 or this paragraph,

(or, where more than nine such amounts are so specified, the nine such amounts immediately following the amount specified in column 2 of Table B in relation to that year), excluding any part of any such amount which has been paid;

“relevant actuarial valuation”, in relation to any year, means the latest actuarial valuation to have been signed before 14th January of that year;

“relevant amounts” means—

(a)

the amount specified in column 2 of Table B in relation to the relevant year (“the specified amount”) and any interest added to the outstanding balance of that amount under paragraph 5(1) or (3) or 7(1); and

(b)

any amount specified in column 2 of Table B below the specified amount in relation to which thre is no subsisting duty to make payments under paragraph 2 or this paragraph (or, where more than nine such amounts are so specified, the nine such amounts immediately following the specified amount) and any interest added to the outstanding balance of any such amount under paragraphs 5(1) or (3) or 7(1); and

(c)

where the 1994 Pensioners “B” Section of the Railways Pension Scheme is deemed to have been wound up by virtue of the operation of Rule 19 of the Rules of that section—

(i)

the amount (if any) specified in column 2 of Table B of Schedule 2 to the 1994 Order in relation to the relevant year (insofar as it remains unpaid) (“the relevant amount”) and any interest added to the outstanding balance of that amount under paragraph 5(1) or (3) or 7(1) of Schedule 2 to that Order; and

(ii)

any amount specified in column 2 of Table B of that Schedule below the relevant amount in relation to which there is no subsisting duty to make payments under paragraph 2 or 3 of that Schedule (or, where more than nine such amounts are so specified, the nine such amounts immediately following the relevant amount) and any interest added to the outstanding balance of any such amount under paragraph 5(1) or (3) or 7(1) of that Schedule,

excluding any part of any such amount or interest which has been paid; and

“relevant date” means any date before 14th April in the relevant year but after 14th April in the previous year, being a date not less than three months after the date of signature of the relevant actuarial valuation in relation to the relevant year.