Part 2

Royal Mail Pension Plan

Powers exercisable

Restriction on power to transfer assets
22
1
The power of the Secretary of State to make an order under section 21 (a “transfer order”) must be exercised so as to secure that the ratio of assets to liabilities of the RMPP immediately after the relevant time is at least equal to the ratio of the assets to liabilities of the RMPP immediately before that time.
2
“The relevant time” is the time at which the order under section 17 in consequence of which the transfer order is made has effect.
3
For the purposes of this section any reference to the assets or liabilities of the RMPP is to their amount or value determined, calculated and verified by a prescribed person and in the prescribed manner.
4
In calculating the value of any liabilities for those purposes, a provision of the RMPP that limits the amount of its liabilities by reference to the amount of its assets is to be disregarded.
5
For the purposes of this section as it applies in relation to the transfer of assets after the relevant time by virtue of a transfer order—
a
treat the assets as if they had been transferred at the relevant time, but
b
disregard so much of the assets as were transferred to reflect the fact that the assets were not actually transferred at the relevant time.