Transport Act 1978

19 Funding of pension obligations

(1) The National Freight Corporation shall, subject to the following provisions of this section, provide the money for funding such of the obligations mentioned in subsection (2) below as may be prescribed, in so far as those obligations have not been funded before the appointed day.

(2) The obligations mentioned in subsection (1) are obligations of N.F.C., N.C.L. and Freightliners Limited which are owed, in connection with any prescribed relevant pension scheme in force on the appointed day, to or in respect of persons who are or have been employed by any of those bodies.

(3) But the obligations which may be prescribed under subsection (1) above shall not include—

(a) any obligation imposed on N.F.C., N.C.L. or Freight liners Limited and resulting from an amendment of a pension scheme made after 1st April 1975, other than an amendment made by virtue of section 74 of the 1962 Act; or

(b) any obligation of N.F.C., N.C.L. or Freightliners Limited arising after that date to pay increases of pensions in excess of those payable, in the case of official pensions, under the [1971 c. 56.] Pensions (Increase) Act 1971 and section 59 of the [1975 c. 60.] Social Security Pensions Act 1975.

(4) The Secretary of State may by order made with the consent of the Treasury prescribe—

(a) the aggregate amount to be provided by the Corporation for funding the prescribed obligations in any prescribed period; and

(b) the manner in which the prescribed aggregate amount is to be apportioned between pension schemes.

(5) The amounts so apportioned shall be debts of N.F.C. to the persons administering the pension scheme in question; and the Secretary of State may by order made with the consent of the Treasury prescribe—

(a) the instalments by which and the dates on which the debts are to be paid off ; and

(b) the rate at which and dates on which interest on the debts is to be paid.

(6) An order made under subsection (5)(a) above may make different provision for different debts; but no order shall be made under that paragraph unless a draft of the order has been laid before, and approved by, the House of Commons.

(7) The Secretary of State shall reimburse the Corporation in respect of any sums paid under this section in respect of the principal of or interest on the debts due by virtue of this section, and any sums required by him for that purpose shall be paid out of money provided by Parliament.