The British Transport Commission (Pensions of Employees) Regulations 1953

Insurance Schemes

6.—(1) Subject to the provisions of these Regulations, in respect of any participant in an insurance 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 relevant 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 and the life assurance company concerned as shall ensure to or in respect of the participant on his reaching the relevant age, or on the happening of any other contingency carrying entitlement to pension under the scheme, the payment or payments comprised in his accrued pension rights.

(2) Any arrangements made under paragraph (1) of this Regulation shall, in any case where the payments to be ensured thereunder to or in respect of an officer or servant on his reaching the relevant age do not exceed £13 per annum, provide that the life assurance company may, at any time within three months of the making of the arrangements, discharge their liability thereunder by paying to or in respect of the officer or servant concerned a lump sum equal in amount to the estimated capital value of his accrued pension rights as at the date on which the option is exercised determined in such manner as may be provided by the arrangements so made, and adjusted, in such manner as may be provided by the arrangements, in respect of any sums which the persons administering the scheme may become liable to pay by way of income tax in consequence of the payment of the said lump sum.

(3) Notwithstanding anything to the contrary in 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 and the life assurance company concerned shall be authorised to make such arrangements (including the disposal of any funds held for the purposes of the scheme) as are referred to in paragraph (1) 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.

7.—(1) Subject to the provisions of this paragraph, this Regulation applies to any insurance scheme all the participants in which (other than participants in receipt of a pension thereunder) lose their employment as officers or servants at one and the same time in consequence of the same relevant event, the cause of such loss having arisen within the relevant period, and not later than seven days after so losing their employment, obtain employment with a new single employer, being an employer willing to continue the scheme and to assume the rights and obligations of the Commission in relation thereto:

Provided that this Regulation shall not apply in any case where the new employer is such a company as is referred to in section 4 or 5 of the Act.

(2) Subject to the consent of the life assurance company concerned, every insurance scheme to which this Regulation applies and all trust deeds, rules and other instruments made for the purpose thereof, shall continue subject to the modifications thereof provided for in this Regulation.

(3) Every insurance scheme to which this Regulation applies and every statutory provision relating thereto and all trust deeds, rules and other instruments made for the purposes thereof shall have effect as from the date on which the participants lose their employment as officers or servants, as though any reference therein (however worded and whether express or implied) to employment by the Commission were, as respects employment as from that date, a reference to employment by the new employer, and the rights and obligations relating to participation in the scheme and in any fund held for the purposes thereof and to the payment of premiums or contributions by employer and employee shall be construed accordingly.

(4) Subject to the provisions of the last preceding paragraph, every insurance scheme to which this Regulation applies and every statutory provision relating thereto and all trust deeds, rules and other instruments made for the purposes thereof shall have effect as from the date on which the participants lose their employment as officers or servants as though, where the Commission is a party thereto, the new employer had been a party thereto, and any reference therein (however worded and whether express or implied) to the Commission were, as respects anything falling to be done on or after that date, a reference to the new employer, and any reference therein (however worded and whether express or implied) to any officer, servant, agent of, or any person appointed by the Commission and concerned with the administration of the scheme or the fund held for the purposes thereof were, as respects anything falling to be done on or after the said date, a reference to such person as the new employer may appoint for the administration or participation in the administration of the scheme or fund held for the purposes thereof; and where the fund held for the purposes of the scheme is so held by the Commission with or without any other person, all necessary steps shall forthwith be taken after the said date to secure that the fund shall thereafter be so held by the new employer in place of the Commission and, where the fund is held by any person (being an officer, servant, agent of, or a person appointed by the Commission) with or without the Commission or any other person, similar steps shall forthwith be taken after the said date to secure that the fund shall thereafter be so held by such person as the new employer may appoint for the purpose in place of the first mentioned person.