1. The provisions relating to the appointment, removal and resignation of Trustees are set out in Clause 5.
2. The provisions relating to the general powers of the Trustees are set out in Clause 8. Without prejudice to the powers in connection with the Scheme referred to in Clause 8, the Trustees shall have all powers rights and privileges in connection with the NATS Section requisite or proper to enable them to carry out or execute or do any transaction act deed or thing arising under or in connection with the NATS Section.
3. The provisions relating to the proceedings of the Trustees are set out in Clause 6.
4. The provisions relating to the liability of the Trustees are set out in Clause 18.
5. The provisions relating to disputes about matters related to the NATS Section are set out in Clauses 8.9 and 8.10.
6. The provisions relating to the powers of the Trustees to insure Section Assets are set out in Clause 8.11.
7. The provisions relating to Section accounts are set out in Clause 10.3.
8. The provisions relating to the preparation of trustees reports and the provision of information are set out in Clause 10.
9.1 If the Sponsoring Section Employer so requests, the Trustees may instruct the Actuary to prepare an actuarial valuation report (an Interim Section Assessment) of the NATS Section as at any date or dates other than as required for the preparation of the Scheme valuation under Clause 12. If so instructed by the Trustees, the Actuary shall consult with the Sponsoring Section Employer and the Trustees as appropriate, including as to the basis, methodology and assumptions to be used in preparing an Interim Section Assessment. Clause 12 shall not apply to an Interim Section Assessment.
9.2 The Trustees shall make any such Interim Section Assessment available to the Sponsoring Section Employer and any other Employers in the NATS Section within seven days of receiving it, and shall also make it available to any other persons or bodies entitled to receive it in the circumstances and in the manner specified in the Disclosure Regulations.
9.3 The costs associated with the preparation of such Interim Section Assessment shall be born by the Sponsoring Section Employer which requests the Interim Section Assessment, or between the Employers in the relevant Section in the proportions determined by the Sponsoring Section Employer of that Section.
10.1 If any actuarial investigation under Clause 12 reveals the existence of a deficiency in the NATS Section, the Employers shall make to the NATS Section for the account of the NATS Section an annual deficiency contribution of such an amount as shall be certified by the Actuary to be required to make good the deficiency over such period determined by the Sponsoring Section Employer, but being a period not greater than that required in accordance with Part I of the Pensions Act 1995(1) which are relevant to the amount and circumstances of the deficit.
10.2—(a) Subject as provided in paragraph (c) below, if any actuarial investigation under Clause 12 reveals the existence of a disposable surplus in the NATS Section on a basis prescribed for the purposes of sections 602 and 603 of and Schedule 22 to the Taxes Act(2), the Trustees shall arrange for the reduction or elimination of the surplus in a way or ways prescribed in that Act for the purpose of such provisions and selected by the Sponsoring Section Employer.
(b)Subject as provided in paragraph (c) below, after making the arrangements described in (a) above (or where the provisions of (a) above do not apply), if any actuarial investigation under Clause 12 reveals a disposable surplus on a basis other than as described in (a) above, the Sponsoring Section Employer may make arrangements for the reduction or elimination of the surplus in one or more of the following ways which are recommended by the Actuary and acceptable to the Board of Inland Revenue for the purposes of this Rule:
(i)arrangements to provide that the amount or the outstanding term of any existing annual deficiency contribution to the NATS Section be reduced to such extent that the reduction in the capital value at the valuation date of the outstanding payments of the deficiency contribution does not exceed but may be less than the amount of the disposable NATS Section surplus; and
(ii)arrangements to provide for a reduction in the contributions of Members or any of them and an augmentation of any of the benefits provided by the NATS Section or for either such reduction or such augmentation.
(c)This Rule 10.2 shall be operated in such a way as to comply with the relevant provisions of Part I of the Pensions Act 1995.
10.3 The disposable surplus or any balance which remains after carrying out such (if any) arrangements as have been made under paragraphs (a) or (b) of Rule 10.2 shall be retained in the NATS Section and the contributions of the Employers to the NATS Section may, subject always to the relevant provisions of Part I of the Pensions Act 1995, be reduced to the extent certified by the Actuary to be required to dispose of such surplus, or the said balance or such part of it as the Sponsoring Section Employer may decide by annual sums over a period not exceeding forty years from the date of valuation.
10.4 The Trustees shall also operate this Rule 10 if required to do so in order to satisfy the provisions of Schedule 22 to the Taxes Act.
11.1 The Actuary shall certify the sum or sums (inclusive of any ordinary contributions of Members) required from time to time to enable the Trustees to maintain the NATS Section and provide the Intended Benefits under the NATS Section. The Trustees shall arrange for written notice to be given to the Employers in the NATS Section specifying the proportions of such sum or sums certified to be applicable to their respective employees and the instalments (if any) by which the Trustees require the same to be paid.
11.2 The Trustees shall maintain a schedule of contributions in accordance with section 58 of the Pensions Act 1995 showing the rates of contributions payable to the NATS Section and the dates on or before which such contributions are to be paid. The information shown on the schedule of contributions shall have been previously agreed between the Trustees and the Employers and shall be made available to those persons or bodies entitled to receive it in the circumstances and in the manner specified in the Disclosure Regulations.
11.3 Each Employer shall pay the amounts required under Rule 11.1 and Rule 11.2 above on or before the date or dates set out in the schedule of contributions referred to above and shall, unless otherwise agreed with any of the Members, forward any voluntary contributions of the Members who are their respective employees and any additional amounts which the Actuary shall determine to be necessary, to make provision for any augmented or additional benefits granted in accordance with the provisions of Rule 12.
11.4 Each Employer may also, subject to the consent of the Trustees and the Sponsoring Section Employer, pay to the Trustees to form part of the Section Assets at any time such additional sum or sums as such Employer shall at its discretion decide, provided always that this would not prejudice the continued approval of the Scheme as an exempt approved scheme for the purposes of Part I of Chapter XIV of the Taxes Act.
11.5 The Trustees shall pay all costs charges and expenses incurred in connection with the establishment, administration and management of the NATS Section out of the Section Assets unless the Sponsoring Section Employer determines that these should be paid by the Employers, in which event they shall be paid by the Employers in such proportions as the Trustees shall on the advice of the Actuary determine. Costs, charges and expenses not attributable solely to the NATS Section shall be dealt with in accordance with Clause 13, provided that any such amounts which consist of professional or other charges (as referred to in Clause 16.1) of the Trustees who are Employers' Trustees shall be paid by the Sponsoring Section Employer to whom they are recognised as being most closely associated.
12. If the Sponsoring Section Employer, or any other Employer with the consent of the Sponsoring Section Employer, requests or if the Trustees with the consent of the Sponsoring Section Employer so determine having regard to any special circumstances and if the Section Assets from time to time in the hands of the Trustees so permit or if arrangements satisfactory to the Trustees have been made for the payment of any additional amounts in accordance with Rule 11 the Trustees shall, subject always to Appendix 4, apply the appropriate part of the Section Assets in one or more of the following ways:
(a)in augmenting the Intended Benefits or in the provision of benefits in a different form but of equal or greater value than the Intended Benefits payable to or on the death of any Member; and
(b)in providing pension for a Spouse, Qualifying Child or Dependant of a Member who died in Service or whilst receiving a pension from the NATS Section; and
(c)in providing a lump sum benefit payable on the death of any Member of the NATS Section who is a former employee of any of the Employers and is not in receipt of a pension from the NATS Section or has not received a cash retirement benefit or a cash sum in lieu of pension under the NATS Section,
provided always that a Member who on leaving Service is a Qualifying Leaver shall, subject to the provisions of the NATS Section, be entitled in addition to any benefits in respect of him under the NATS Rules, to the whole or such proportion of any benefits under (a) or (b) above in respect of him (other than any part thereof payable on death in Service prior to Normal Pension Date) as the Trustees shall after consultation with the Actuary decide, being not less than such proportion as the period from the date such benefit was awarded to the date on which he left Service (but ignoring any part of such period in respect of which a refund of contributions is elected by the Member) bears to the period from the said date such benefit was awarded to the Member’s Normal Pension Date.
13. The Section Strategic Asset Allocation Committee (appointed in accordance with Clause 7) shall from time to time decide the proportion of Section Assets which shall be held in each Pooled Fund or other investment approved by the Trustees.
14. The provisions relating to the Trustees' powers to borrow monies are set out in Clause 15.7.
15.1 This Rule applies where a proposed amendment relates solely to the provisions of the NATS Section (as referred to in Clause 17.1).
15.2 The Sponsoring Section Employer with the consent of the Trustees may at any time by supplemental deed amend the provisions of the NATS Section by modifying, altering, deleting or adding to the provisions of the NATS Section or by substituting new provisions to the exclusion of or in addition to all or any of the provisions for the time being in force:
(a)in order that the provisions of the trust deeds governing the Scheme shall conform with the requirements of a scheme capable of approval by the Board of Inland Revenue under Chapter I of Part XIV of the Taxes Act or to obtain and maintain a contracting-out certificate under the Pension Schemes Act 1993(3) in respect of the employment of the Members or any class of the Members or in order that the provisions of the said trust deeds shall effectively carry out the intentions of the Interim Deed and shall define and regulate the Scheme in accordance with the terms of any announcement made to Members and those eligible for membership prior to 20 November 1976;
(b)for any other purpose,
but no amendment shall alter the primary purpose of the Scheme or be such as to contravene the provisions of the Pensions Act 1995 in relation to the modification of schemes, and an amendment for any purpose other than those specified in paragraph (a) above shall not:
(a)make any monies of the Fund or the NATS Section payable to any Employer except in so far as they are a surplus remaining after the termination of the NATS Section and the dissolution of the Section Assets;
(b)reduced the accrued or prospective benefits of existing Members in the NATS Section.
15.3 The Trustees shall have the right subject, where required in accordance with section 68 of the Pensions Act 1995(4), to the consent of the Sponsoring Section Employer, to modify the NATS Section by resolution for the purposes described in that section. Any such modification shall be subject to the provisions of that section and of any regulations made under it.
15.4 As soon as practicable after agreeing or deciding to amend the provisions of the NATS Section in accordance with to this Rule 15, being amendments to the documents constituting the NATS Section or to information which any person has a right to receive in accordance with the Disclosure Regulations, the Trustees shall arrange for the relevant person or persons to be notified. If such person is a Member the Trustees shall notify or arrange for the notification of each Member affected thereby individually in writing or by exhibiting a notice at the relevant locations of work or employment and make the appropriate amendment taking into account any requirements of the Board of Inland Revenue, the Occupational Pensions Regulatory Authority or the Department of Social Security in respect thereof.
16.1 The Sponsoring Section Employer shall have power with the consent of the Trustees to admit to participation in the NATS Section any Subsidiary Company or Associated Company or Non-Associated Company which the Sponsoring Section Employer and the Trustees shall agree (the New Employer) provided that:
(a)as a condition of admission the New Employer shall execute a deed by which it covenants with the Trustees and the Sponsoring Section Employer to comply with and to observe the provisions of the Trust Deed and the NATS Rules insofar as they apply to Employers in the NATS Section other than the Sponsoring Section Employer, and
(b)the approval of the Scheme as an exempt approved scheme for the purposes of Chapter I or Part XIV of the Taxes Act would not thereby be prejudiced.
16.2 The Sponsoring Section Employer shall have power with the consent of the Trustees to remove from participation in the NATS Section any Employer subject to giving six months' previous notice in writing to the Trustees (or such shorter period of notice as shall be acceptable to the Trustees).
17.1—(a) If legislation is passed for the reconstruction or reconstitution of the Sponsoring Section Employer or if the Sponsoring Section Employer is absorbed by or amalgamated with a company or another body or if the undertaking of the Sponsoring Section Employer (or the major part of it) is assigned to or vested in a company or other body, the Trustees may make such arrangements or enter into such agreements (not being arrangements or agreements of such a kind as to prejudice the continued approval of the Scheme) as they think fit for the continuance of the NATS Section and for such reconstructed or amalgamated or other company or body to take the place of and become the Sponsoring Section Employer for all purposes of the NATS Section from a date agreed with the Trustees provided that such company or body shall undertake to perform all the obligations of the Sponsoring Section Employer under the Trust Deed and the NATS Rules;
(b)if the Sponsoring Section Employer gives notice in writing to the Trustees of termination of its liability to contribute to the NATS Section as described in Rule 44 or of termination of its willingness to continue as Sponsoring Section Employer in relation to the NATS Section, the Trustees may, provided that recognition of the Scheme as an exempt approved scheme for the purposes of Part I of Chapter XIV of the Taxes Act is not thereby prejudiced, request one of the other Employers participating in the NATS Section to assume the obligations and duties of the Sponsoring Section Employer and if such other Employer is willing to do so such Employer shall take the place of and become the Sponsoring Section Employer of the NATS Section for all purposes of the Scheme and the NATS Section from a date agreed with the retiring Sponsoring Section Employer and the Trustees,
provided always that no arrangement or agreement made under this Rule 17.1 shall be operated in such a manner that any person to whom a benefit is in course of payment from the NATS Section shall receive lower benefits than if the NATS Section were to be wound up at the expiry of a period of six months from the date such arrangement or agreement takes effect.
17.2 If it appears to the Sponsoring Section Employer that the Trustees will be unable to make arrangements as described in paragraph (a) of Rule 17.1 the Sponsoring Section Employer may, after consultation with the Trustees, request one of the other Employers participating in the NATS Section to assume the obligations and duties of the Sponsoring Section Employer on the basis described in paragraph (b) of Rule 17.1 and subject to the proviso to Rule 17.1.
17.3 If the Sponsoring Section Employer ceases to contribute to the NATS Section and if at the date of such cessation it shall appear to the Trustees, after taking advice from the Actuary, that the NATS Section is insolvent with regard to the benefits of persons then in receipt of pensions from the NATS Section and to the then value of the benefits which have accrued to the Members of the NATS Section at that date, the Sponsoring Section Employer shall pay to the Trustees within a period of seven days an amount calculated by the Actuary as being sufficient to restore the solvency of the NATS Section or of the appropriate part of it.
18.1 Except as provided in Rule 18.2 below, the NATS Section shall be terminated and wound-up in accordance with Rule 19 upon the happening of any of the following events (whichever shall first occur):
(a)if it shall appear to the Trustees that the NATS Section is insolvent or if the Trustees shall have received advice from the Actuary to that effect and there are no proposals acceptable to the Trustees which in the opinion of the Actuary would restore the solvency of the NATS Section, and the Trustees resolve to terminate the NATS Section;
(b)if the Sponsoring Section Employer terminates its liability to contribute to the NATS Section by notice to the Trustees as described in Rule 17 and no other Employer participating in the NATS Section assumes the obligations and duties of the Sponsoring Section Employer in relation to the NATS Section as provided for in that Rule within a period of three months (or such longer period as the Trustees shall determine) from the date of such notice;
(c)if the Sponsoring Section Employer shall at any time fail to pay to the Trustees any sum or sums on or within seven days after the date on which the Trustees shall have required the same to be paid under Rule 11 or shall fail to observe and perform any other of its obligations under the Trust Deed or in the NATS Rules or in any deed or agreement supplemental hereto and (in either case) the Trustees resolve to terminate the NATS Section;
(d)if legislation is passed whereby the Sponsoring Section Employer shall cease to carry on business and no company, other body or Employer assumes the obligations and duties of the Sponsoring Section Employer in relation to the NATS Section as described in Rule 17 within a period of three months (or such longer period as the Trustees shall determine) from the date of the order or resolution or cessation of business as appropriate;
(e)if the Occupational Pensions Regulatory Authority, pursuant to section 11 of the Pensions Act 1995(5), directs or authorises the NATS Section to be wound up;
provided always that if any of the above events other than that described in paragraph (c) above occurs and no other Employer assumes the obligations of the Sponsoring Section Employer under the NATS Section, the Trustees shall at their discretion either apply to the Secretary of State for directions and comply with those directions or proceed to the winding-up of the NATS Section in accordance with Rule 19.
18.2 Upon the occurrence of any of the events described in Rule 18.1 (other than the events described in paragraphs (a) and (e) of that Rule), the Trustees may at their discretion decide to defer giving effect to the winding-up of the NATS Section and may continue to administer the NATS Section on the basis that no further employees shall be admitted to membership of the NATS Section. They may also determine:
(a)that there shall be no liability on the Employers participating in the NATS Section or, where appropriate, on the Members to make further contributions to the NATS Section, and
(b)that no further benefits are to accrue under the NATS Section to or in respect of Members.
The NATS Section shall subsequently be wound up upon the happening of any of the events described in paragraphs (a) and (e) of Rule 18.1 or at any earlier date determined by the Trustee.
19.1 Unless the winding-up is deferred in accordance with Rule 18.2, the NATS Section shall be wound up and the trusts of the NATS Section shall be determined upon the happening of any of the events described in Rule 18.1 (whichever shall first occur) and such date shall be the effective date of winding-up of the NATS Section for the purposes of this Deed.
With effect from the effective date of winding-up:
(a)Pensionable Service in respect of all Members of the NATS Section shall terminate and no pension benefit shall accrue under the NATS Section in respect of Service on and after the effective date of winding-up and in respect of such Service, Current Members shall be treated as Members who have left Service on that date; and
(b)any death benefit payable under Rule 26 shall be provided on the basis that all Current Members are treated as Members who have left Service on the effective date of winding-up (and for such purpose Rule 26.2(a) shall be disregarded).
19.2 If the NATS Section is to be wound up, the Trustees shall arrange for all Members and other persons in receipt of benefit from the NATS Section (and any other persons or bodies who or which are entitled to information in the circumstances and in the manner specified in the Disclosure Regulations) to be notified and shall give effect to the winding-up in the following manner.
(a)The Trustees shall be entitled to reserve out of the Section Assets of the NATS Section such amount as they consider may be necessary to meet any expenses of the administration and winding-up of the NATS Section which in their opinion may not be recoverable from the Employers, and to meet any tax, duty or other payments for which they may be accountable under the NATS Section.
(b)The Trustees shall, with the advice of the Actuary, apply the balance of the Section Assets of the NATS Section in securing, so far as the available amount permits, the payment of benefits and refunds of contributions firstly in the order of priority set out in Section A of Rule 19.3 below and secondly, as regards any part of the Section Assets then remaining, in the order of priority set out in Section B of that Rule, in both cases having regard to the requirements of the Board of Inland Revenue as to the maximum benefits which the Scheme may provide and to the provisions of the Pensions Act 1995.
(c)Subject as provided in Rule 19.4 below and to the Trustees giving notice to Members as provided in section 76 of the Pensions Act 1995 and complying with any requirements set out in or prescribed pursuant to that section, any part of the Section Assets remaining unexpected after effect has been given to the preceding provisions of this Rule shall be paid to the Employers in such proportions having regard to any requirements of the Board of Inland Revenue as the Trustees with the advice of the Actuary shall decide, provided that the Trustees shall first deduct and account to the Inland Revenue for any tax liability under Schedule 22 to the Taxes Act(6).
(d)As an alternative to applying the Section Assets as described above in this Rule 19.2, the Trustees may, after applying paragraph (a) above and with the advice of the Actuary and at the request of or with the agreement of the Sponsoring Section Employer, transfer the whole of the remainder of the Section Assets to one or more retirement benefits schemes which relate to the same employment or to another employment with the same Employer or the Employer’s successor. Any such transfer shall be subject to the conditions set out in paragraphs (a), (c) and (d) in Rule 34.2.
(a)Pensions and other benefits which in the opinion of the Trustees are derived from the payment of voluntary contributions to the NATS Section by Members.
(b)Benefits (other than any included in (a) above) required to satisfy section 73 of the Pensions Act 1995(7)1 and any other provisions of that Act relating to the application of assets of the NATS Section upon its winding-up, being benefits corresponding to the amounts of the liabilities and the order in which they are to be secured in accordance with the provisions of the Pensions Act 1995.
The order of priority in this Section B is as follows, provided that (1) where the balance of assets to be applied as aforesaid is insufficient to secure the whole of the benefits within any of the following numbered sub-paragraphs the benefits within that sub-paragraph shall be secured on a proportionate basis and (2) none of the following sub-paragraphs shall include benefits already included within a higher priority and (3) except as provided below, any pension under this Section B shall include increased and prospective increases to such pensions in accordance with Rule 39:
(a)Pensions and other benefits for Members, their Spouses, Qualifying Children and Dependants and for any other persons to which entitlement to payment has arisen hereunder prior to the effective date of winding-up of the NATS Section including any associated death benefits.
(b)Pensions and other benefits which have been postponed beyond Normal Pension Date (such benefits to be payable as at the effective date of winding-up of the NATS Section) including any associated death benefits.
(c)Guaranteed minimum pensions and accrued rights to guaranteed minimum pensions, benefits excluded from guaranteed minimum pensions by virtue of section 13(6) of the Pension Schemes Act 1993(8), and Contributions Equivalent Premiums.
(d)Benefits which have been conferred on Members under the NATS Section in respect of transfers to the NATS Section (other than in respect of transfers from retirement benefits schemes of any of the Employers or from another Section of the Scheme).
(e)In respect of Members who have not reached Normal Pension Date and have not received any retirement benefits from the NATS Section, the benefits to which those Members are entitled from the NATS Section or, in the case of Current Members, the benefits or refunds of contributions to which they would have been entitled from the NATS Section if they had left Service at the effective date of winding-up of the NATS Section such benefits being non-assignable benefits payable to such Members, their Spouses, Qualifying Children and Dependants.
19. If any part of the Section Assets remains after application of the aforesaid provisions of this Rule 19, then before making any payment to the Employers as described in paragraph (c) of Rule 19.2, the Trustees after consultation with the Actuary:
(a)may purchase such other or additional benefits as they shall determine for Members, former Members, their Spouses, Qualifying Children and Dependants or any other person acceptable for the purposes of this Rule to the Board of Inland Revenue, or any one or more of such persons, subject always to the requirements of the Board of Inland Revenue; and
(b)shall by application of a part or all of the remaining Section Assets (if any) increase the annual rates of pension payable or to be paid from the NATS Section in accordance with the relevant provisions of the Pensions Act 1995.
19.5 Any benefits to be provided under this Rule 19 may be secured by the Trustees in either or both of the following ways:
(a)by the purchase in respect of any Member of appropriate benefits under an Approved Policy (or any other policy or annuity contract acceptable to the Board of Inland Revenue for the purposes of this Clause) subject, with the necessary alterations in point of detail, to the provisions of Rule 33; or
(b)by the transfer of an amount in respect of any Member to secure appropriate benefits under a retirement benefits arrangement of which he becomes a member subject, with the necessary alterations in point of detail, to Rule 34,
provided always that:
(i)benefits in respect of a Member shall be deemed to be appropriate for the purposes of (a) and (b) above if they are, in the opinion of the Trustees with the advice of the Actuary, not less in value than the benefits in respect of the Member under this Rule 19 and subject to conditions which the Trustees consider to be as similar as may be practicable although not necessarily identical to the conditions applicable to such benefits under the NATS Section or, if after consultation with the Actuary the Trustees decide that it would be more expedient and, provided that such conditions are acceptable to the Board of Inland Revenue and to the Occupational Pensions Regulatory Authority, on conditions which differ from the conditions applicable to such benefits under the NATS Section; and
(ii)a transfer under (b) above shall not be subject to the consent of the Member if the transfer is to another Section of the Scheme or to another retirement benefits scheme relating to the same employment or to another employment with the same Employer or the Employer’s successor, and if the Actuary makes the relevant certification described in the Preservation Regulations; and
(iii)where any benefit to be secured does not at the effective date of winding-up of the NATS Section exceed the limit set out in Rule 29.1 the Trustees may elect to make immediate payment of a cash sum of an amount to be determined by the Trustees subject, with the necessary alterations in point of detail, to the provisos to that Rule; and
(iv)in any application of the above provisions the Trustees shall comply with the provisions of section 74 of the Pensions Act 1995(9) and with the requirements of the Board of Inland Revenue.
20.1 The participation in the NATS Section of an Employer other than the Sponsoring Section Employer shall cease upon the happening of any of the following events (whichever shall first occur):
(a)if such Employer terminates its liability to contribute to the NATS Section as described in Rule 44;
(b)if such Employer at any time fails to pay to the Trustees any sum or sums on or within seven days after the date on which the Trustees in accordance with Rule 11 have required the same to be paid or fails to observe and perform any other of its obligations under the Scheme and the Trustees thereupon give notice in writing of not less than 28 days to such Employer that its participation in the NATS Section shall cease;
(c)if the Sponsoring Section Employer has given six months' previous notice in writing to the Trustees (or such shorter period of notice acceptable to the Trustees) that the participation of the Employer is to cease and such period expires;
(d)if an order is made or an effective resolution is passed for the winding-up of such Employer (other than for the purpose of reconstruction or amalgamation with any other company) or such Employer ceases to carry on business;
(e)if the degree of association between the Sponsoring Section Employer and such Employer ceases to be sufficiently great to justify the continued participation of such Employer in the NATS Section;
(f)if the continued approval of the Scheme as an exempt approved scheme for the purposes of Chapter I of Part XIV of the Taxes Act would be prejudiced,
provided that the participation of the Employer in the NATS Section may be continued until such date as the Employer, the Sponsoring Section Employer, the Trustees and the Board of Inland Revenue may agree.
20.2 If an Employer ceases to participate in the NATS Section as described in Rule 20.1 or if a part of the undertaking of any of the Employers shall be assigned to or vested in any other company or body (other than in circumstances where the Trustees make arrangements under Rule 17), then:
(a)if at the date of the relevant event it shall appear to the Trustees after taking advice from the Actuary that the appropriate part of the NATS Section is insolvent with regard to the benefits of persons then in receipt of pensions from the NATS Section and to the then value of benefits which have accrued to Members at that date (being respectively persons and Members whose benefits from the NATS Section derive from employment with the relevant Employer) the relevant Employer shall pay to the Trustees within a period of seven days an amount calculated by the Actuary as being sufficient to restore the solvency of the appropriate part of the NATS Section; and
(b)the Trustees shall ascertain the Relevant Fund Assets (as defined in paragraph (c) below) in respect of such Employer and shall, with the necessary alterations in point of detail, apply the provisions of Rule 19 (or, if they so determine and subject to any requirements of the Board of Inland Revenue, Rule 18.2) but in relation only to the Relevant Fund Assets in respect of such Employer and to the Members in relation to whom such Relevant Fund Assets have been calculated, provided always that a transfer as in paragraph (b) of Rule 19.5 may be made without the Member’s consent only where this is permissible under the Preservation Regulations and subject always to the provisions of such Regulations;
(c)for the purposes of this Rule, Relevant Fund Assets means in respect of an Employer, subject as provided below, that part of the Section Assets which in the opinion of the Trustees in consultation with the Sponsoring Section Employer and with the advice of the Actuary can be related to the Members whose membership of the NATS Section derives from employment with such Employer (or, as appropriate, with the relevant part of the undertaking of such Employer) and to the Spouses, Qualifying Children and Dependants of such Members. That part of the Section Assets shall be calculated on whichever of the following bases the Trustees, after consultation with the Sponsoring Section Employer and the Actuary, shall determine:
(i)the aggregate of the Cash Values as at the date on which the Employer ceased to participate in the NATS Section of the benefits to which the said Members are entitled from the NATS Section or, in the case of Current Members, of the benefits to which they would have been entitled from the NATS Section if they had left Service at such date;
(ii)the aggregate of the Cash Values of the benefits described in (i) above but including, for the purposes of calculation in respect of Current Members, increases which the Trustees with the advice of the Actuary consider would be made to such Members' remuneration between the effective date of the calculation and the relevant Members' Normal Pension Dates;
(iii)the proportion of the total Section Assets which, in the opinion of the Trustees, with the advice of the Actuary relates to that Employer;
(iv)some other basis recommended by the Actuary,
provided that if the Trustees with the advice of the Actuary shall so determine the amount calculated in accordance with (i) or (ii) above shall not exceed the amount which could be calculated in accordance with (iii) above.
Alternatively the Relevant Fund Assets may, if the Trustees after consultation with the Sponsoring Section Employer and the Actuary so determine, be calculated as described above but in relation only to Members who are currently in service and to the Spouses, Qualifying Children and Dependants of such Members.
1988 c. 1; Schedule 22 was amended by the Taxation of Chargeable Gains Act 1992 (c. 12), section 290(1) and Schedule 10, paragraph 14(1) and(60).
Section 68 was amended by the Welfare Reform and Pensions Act 1999 (c. 30), section 84(1) and Schedule 12, Part I, paragraphs 43 and 54.
1988 c. 1; Schedule 22 was amended by the Taxation of Chargeable Gains Act 1972 (c. 12), section 290(1) and Schedule 10, paragraph 14(1) and(60).
Section 73 was amended by S.I. 1996/3126, regulation 3.
1995 c. 26; section 74 was amended by the Welfare Reform and Pensions Act 1999 (c. 30), section 84(1) and Schedule 12, Part I, paragraphs 43 and 56.