The British Transport Commission (Pensions of Employees) Regulations 1953

Funded Schemes

3.—(1) Subject to the provisions of these Regulations, this Regulation and the two next succeeding Regulations shall apply in relation to every funded scheme.

(2) In respect of any participant in a funded scheme who loses his employment as an officer or servant in consequence of the relevant event, the cause of such loss having arisen within the revelant period, the Commission may, not later than three months after the date upon which he so loses his employment, make such arrangements with the persons administering the scheme as shall ensure to him his accrued pension rights. Any arrangements made under this paragraph may be determined by the Commission at any time upon giving to the persons administering the scheme three months' previous notice in writing.

(3) Notwithstanding anything to the contrary in any such scheme as aforesaid or any statutory provisions relating thereto or trust deeds, rules or other instruments made for the purposes thereof, the persons administering the scheme shall be authorised to make such arrangements (including the disposal of funds held for the purposes of the scheme) as are referred to in paragraph (2) of this Regulation and the said scheme, statutory provisions, trust deeds, rules and other instruments shall be construed accordingly and as though provision was duly made in the scheme for any arrangements so made.

4.—(1) If in the case of any participant in a funded scheme, in respect of whom the Commission are authorised to make such arrangements as are referred to in the last preceding Regulation, no such arrangements are made, or, if made, have been duly determined, the persons in whom any funds held for the purposes of the scheme are vested shall transfer to the Commission a sum which equals in amount either—

(a) the transfer value at the date when he loses his employment or the date on which the arrangements are determined, as the case may be, of his pension rights as defined for the purposes of the scheme; or

(b) in the absence of such a definition, the estimated capital value at that date of his accrued pension rights;

with compound interest from the date when he loses his employment or the date on which the arrangements are determined, as the case may be, until such sum is transferred to the Commission; and upon such sum being transferred, the Commission shall indemnify the persons in whom the said sum is vested against any liability for the payment of income tax in respect of the sum so transferred to the Commission, and without prejudice to their liability under any arrangements made in accordance with Regulation 3 of these Regulations or under the preceding provisions of this Regulation, as from the date on which the participant loses his employment, the persons administering the scheme, and the persons in whom the said fund is vested, shall be discharged from all liability under the scheme to or in respect of the participant concerned or to any other person by reason of the transfer.

(2) The reference in paragraph (1) of this Regulation to compound interest shall be construed as a reference to compound interest at the same rate and with the same rests as were applied for the purposes—

(a) where the sum to be transferred is that referred to in sub-paragraph (a) of the said paragraph, of the last periodical actuarial valuation of the fund held for the purposes of the scheme;

(b) in any other case, of calculating the estimated capital value of the accrued pension rights referred to in that paragraph.

(3) The sum to be transferred to the Commission under the provisions of paragraph (1) of this Regulation shall be transferred within six months after the date when the participant loses his employment or, where any such arrangements as are referred to in paragraph (2) of the last preceding Regulation have been made, the date on which the arrangements are duly determined, as the case may be.

(4) The sum referred to in sub-paragraph (b) of paragraph (1) of this Regulation shall be determined by an actuary appointed by the Commission and the fees of any actuary so appointed shall be defrayed by the Commission.

5.—(1) Subject to the provisions of this Regulation, the Commission shall pay to or in respect of every officer or servant in whose case the persons in whom any funds held for the purposes of the scheme are vested are under the last preceding Regulation liable to transfer to the Commission any sum—

(a) as from his reaching the relevant age, or as from the happening of any other contingency carrying entitlement to pension under the scheme, the payment or payments comprised in his accrued pension rights; or

(b) at the option of the Commission in any case where the sum does not exceed £250, a lump sum equal in amount to the estimated capital value of his accrued pension rights at the date when the option is exercised, as determined by an actuary appointed by the Commission, reduced by an amount equal to any sum which the persons in whom the fund held for the purposes of that scheme is vested may become liable to pay by way of income tax in respect of the amount transferred by way of transfer value or estimated capital value:

Provided that—

(i) the provisions of sub-paragraph (b) of this paragraph shall not apply in any case where the option is not exercised within six months after the date upon which the officer or servant loses his employment as an officer or servant, or, being a person to whom Regulation 10 of these Regulations applies, after the date on which his service with any such company as is referred to in that Regulation is deemed to have ceased for any of the reasons therein specified;

(ii) for the purposes of this paragraph, the expression “accrued pension rights” excludes any pension payable during the period that any such arrangements as are referred to in paragraph (2) of Regulation 3 of these Regulations are in force.

(2) The Commission may discharge their liability under sub-paragraph (a) of the last preceding paragraph by making such arrangements with a life assurance company as will ensure to or in respect of the officer or servant concerned as from his reaching the relevant age or as from the happening of any other contingency carrying entitlement to pension under his pension scheme, the payment or payments comprised in his accrued pension rights.

(3) Except as aforesaid, the Commission shall be under no liability to or in respect of the officer or servant concerned by reason of any rights under or arising out of his participation in the scheme.