The British Transport Commission (Pensions of Employees) Regulations 1953

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.